Financial Ratios: PepsiCo

Financial ratios are great tools when it comes to the evaluation of the performance of a business entity. In that regard therefore, ratios are used by various stakeholder groups including but not limited to investors, suppliers, creditors, and even regulatory bodies. This text concerns itself with ratio analysis with my entity of choice being a publicly traded beverage company. For purposes of this discussion, I will concern myself with PepsiCo. PepsiCo regards itself "one of world's leading food and beverage companies…" (PepsiCo, 2013)

Key Financial Ratios

A financial ratio in the words of Moyer, McGuigan, Rao, and Kretlow (2011, p. 70) "is a relationship that indicates something about a company's activities…" Various financial ratios have been developed over time. Some of the key financial ratio categorizations that could come in handy in this context include: profitability ratios, liquidity ratios, and financial leverage ratios. So as to enhance...
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