The review of Net Profit Marginwitnessed a fluctuating trend. The Net Profit Margin moved from 10.89% in 2019 to 9.92% in 2023.
The average EBIT Margin for the period under analysis was 14.18%, with 2023 and 2019 performing the worst and best, respectively.
In the current year, PepsiCo was able to cover its interest liabilities 14.91 times – compared to 2019 when it was 10.92 times.
The Asset turnover stood at 0.93 times in 2023 from 0.88 in 2019,implying a high performance on Assets of the business in relation to revenue.
Profitability
The revenue of PepsiCo has fluctuatedyear on year. The revenue increased by 4.78% between 2019 and 2020 and a further 8.70% increase was recorded between 2021 and 2022. There also occurred an increase of 5.88% between 2022 and 2023 (the current period).
PepsiCo’s performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks poor, as current ratio increased from 0.80:1 to 0.85:1 on the last year. Which implies that the company has enough assets to settle its current liabilities.
Capital Structure
PepsiCo is both equity and debt financed.
The debt-to-equity (D/E) ratio has been falling year on year. The gearing position of the company appears to be high as it stood at 238% in the current year.
