Tuesday, February 11, 2020

Report -- financial investment Essay Example | Topics and Well Written Essays - 1000 words

Report -- financial investment - Essay Example he company stood at 39,848 Million, which included 4,135 Million liquidity which is a good prospect for a shareholder as the company has good available liquidity. The company also has enough cash to pay off its short term liabilities. The company had a good prospect to pay off its short term and current liabilities. The sales of the company was spread all over the world and carried less amount of bad debts which also gave strength to its debtors turnover. The current ratio of the company is 1.44, with current Assets amounting to 12,571 and current liabilities 8,756. The company has a substantial cover over its current liabilities and has enough current assets to overcome the current liabilities. The industry’s average current ratio is 1.08, which gives an indication that Pepsi is well off compared to the other companies. The company carries 8,759 quick assets to cover current liabilities worth of 8,756 which gives a quick ratio of 1. (Co.) The current assets of the company amount to 17,551 while the current liabilities stand at 13,721. It makes the current ratio stand at 1.28. This specifies that the company has adequate current assets to pay off their current obligations. (Stock-Analysis, 2010) However, the quick assets make up 12,971 of the current assets which are less than the current liabilities. This may create difficulty for the company when it pays off its current liabilities. (Cola) The profitability ratios, i.e. the Return on Assets and the Return on Equity for the company amount to 14.92% and 35.38% respectively. (Stock-Analysis) The similar rations for the industry stand at 4.14% and 11.9% respectively which gives Pepsi Inc an upper hand as it has utilized its assets and equity very efficiently. The company generated a Return on Assets and Return on Equity equal to 14.72% and 27.52% respectively which is well over the industry norms. The company generated a profit of 6,824, which is 1,000 more than the profit of the company last year and 800

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.