GemAnalyst | Investment Research & Financial Literacy

Menu

Pepsi Co’s Strategy

By Leave a Comment

                   

COMMON SIZE INCOME STATEMENT FOR COCA COLA AND PEPSI CO

Coca Cola Coca Cola Pepsi Co Pepsi Co
Period Ending 31-Dec-14 % of TR 31-Dec-13       % of TR 27-Dec-14 % of TR 28-Dec-13 % of TR
$’ Million $’ Million $’ Million $’ Million
Total Revenue (TR\) 45,998 100% 46,854 100% 66,683 100% 66,415 100%
Cost of Revenue 17,889 39% 18,421 39% 30,884 46% 31,243 47%
Gross Profit 28,109 61% 28433 61% 35,799 54% 35,172 53%
Operating Expenses
Research Development – – – –
Selling General and Administrative 18,401 40% 18205 39% 26,126 39% 25,357 38%
Non Recurring – – – –
Others – – 92 0.14% 110 0.17%
Total Operating Expenses – – – –
Operating Income or Loss 9,708 21% 10228 22% 9,581 14.37% 9,705 15%
Income from Continuing Operations
Total Other Income/Expenses Net -669 -1.45% 1,110 2% 85 0.13% 97 0.15%
Earnings Before Interest And Taxes 9,808 21% 11,940 25% 9,666 14% 9,802 15%
Interest Expense 483 1.05% 463 0.99% 909 1.36% 911 1.37%
Income Before Tax 9,325 20% 11,477 24% 8,757 13.1% 8,891 13.4%
Income Tax Expense 2,201 5% 2,851 6% 2,199 3.3% 2,104 3.2%
Minority Interest -26 -0.06% -42 -0.09% -45 -0.067% -47 -0.071%
Net Income From Continuing Ops 7,867 17% 9186 20% 6,513 10% 6,740 10%
Non-recurring Events
Discontinued Operations – – – –
Extraordinary Items – – – –
Effect Of Accounting Changes – – – –
Other Items – – – –
Net Income 7,098 15% 8584 18%     6,513     10% 6,740 10%
Preferred Stock And Other Adjustments – – – –
Net Income Applicable To Common Shares 7,098 15% 8584 18%    6,513     10% 6,740 10%

    COMMON SIZE STATEMENT OF FINANCIAL POSITION OF PEPSI CO AND COCA COLA

Coca Cola Pepsi Co
Period Ending 31-Dec-14 % OF TA 31-Dec-13 % OF TA 27-Dec-14 % OF TA 28-Dec-13 % OF TA
$’ Million $’ Million $’ Million $’ Million
Assets
Current Assets
Cash And Cash Equivalents 8,958 10% 10,414 12% 6,134 9% 9,375 12%
Short Term Investments 12,717 14% 9,854 11% 2,592 4% 303 0%
Net Receivables 4,466 5% 4,873 5% 6,651 9% 6,954 9%
Inventory 3,100 3% 3,277 4% 3,143 4% 3,409 4%
Other Current Assets 3,745 4% 2,886 3% 2,143 3% 2,162 3%
Total Current Assets 32,986 36% 31,304 35% 20,663 29% 22,203 29%
Long Term Investments 13,625 15% 11,512 13% 2,689 4% 2,623 3%
Property Plant and Equipment 14,633 16% 14,967 17% 17,244 24% 18,575 24%
Goodwill 12,100 13% 12,312 14% 14,965 21% 16,613 21%
Intangible Assets 14,272 16% 15,299 17% 14,088 20% 16,039 21%
Accumulated Amortization – – – –
Other Assets 4,407 5% 4,661 5% 860 1% 1,425 2%
Deferred Long Term Asset Charges – – – = –
Total Assets (TA) 92,023 100% 90,055 100% 70,509 100% 77,478 100%
Liabilities
Current Liabilities
Accounts Payable 9,634 10% 9,886 11% 13,016 18% 12,533 16%
Short/Current Long Term Debt 22,682 25% 17,925 20% 5,076 7% 5,306 7%
Other Current Liabilities 58 0.06% – – –
Total Current Liabilities 32,374 35% 27,811 31% 18,092 26% 17,839 23%
Long Term Debt 19,063 21% 19,154 21% 23,821 34% 24,333 31%
Other Liabilities 4,389 5% 3,498 4% 5,744 8% 4,931 6%
Deferred Long Term Liability Charges 5,636 6% 6,152 7% 5,304 8% 5,986 8%
Minority Interest 241 0.26% 267 0.30% 110 0.16% 110 0.14%
Negative Goodwill – – – –
Total Liabilities 61,703 67% 56,882 63% 53,071 75% 53,199 69%
Stockholders’ Equity
Misc Stocks Options Warrants – – -140 -0.0019856 -130 -0.17%
Redeemable Preferred Stock – – – –
Preferred Stock – – – –
Common Stock 1,760 2% 1,760 2% 25 0.04% 25 0.03%
Retained Earnings 63,408 69% 61,660 68% 49,092 70% 46,420 60%
Treasury Stock -42,225 -46% -39,091 -43% -24,985 -35% -21,004 -27%
Capital Surplus 13,154 14.3% 12,276 13.6% 4,115 5.8% 4,095 5.3%
Other Stockholder Equity -5,777 -6% -3,432 -4% -10,669 -15% -5,127 -7%
Total Stockholder Equity 30,320 33% 33,173 37% 17,578 25% 24,409 32%
Net Tangible Assets 3,948 4% 5,562 6% -11,475 -16% -8,243 -11%

 COMPARABLE COMPANY ANALYSIS

A common size or vertical analysis of each company shows each item listed on the financial statement as a percentage that reflects a base amount. In the above financial statement of Pepsi co and  Coca Cola, I chose the total revenue of the companies as the base amount in the income statement, and total Asset as the base amount in the statement of financial position. This is to maintain parity in the analysis of their financial statements. The year of analysis is their most recent financial statement which is the 2014 FY financial statement.

In the year of assessment (2014), total revenue for Pepsi is $66,415 and total revenue for Coca Cola is $45,998. With the total revenue for each company in mind, various items on the income statement for each are addressed.

Share this:

Leave a Reply

Your email address will not be published. Required fields are marked *