financial ratio analysis 45

Purpose of Assignment

Students should understand how to use the financial information and tools learned in the class on a public company, obtain public company SEC reports, and use that data to calculate a company’s financial ratios and their comparison to industry or competitor standards.

Chosen Pepsi Cola Corporation for our corporation on this assignment, and I have copied the link for the most current SEC Form 10-K (annual financial report) from the company’s web site below. (Do not use the Annual Report that is sent to shareholders)

10-K SEC filing:

http://phx.corporate-ir.net/phoenix.zhtml?c=78265&p=irol-SECText&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2lwYWdlPTExNDAyMDI5JkRTRVE9MCZTRVE9MCZTUURFU0M9U0VDVElPTl9FTlRJUkUmc3Vic2lkPTU3

Calculate and analyze the following ratios for your selected company for the last two years from the SEC Form 10-K:

  • Current Ratio
  • Inventory Turnover

Compare and contrast your company’s ratios to industry and competitor standard ratios obtained from Yahoo Finance, Morningstar, MotleyFool, Macroaxis or other Internet sources, and provide a detailed answer and analysis as to why your company’s ratios are different than the industry/competitor standard.

Prepare your analysis in a minimum of 175-200 words in Microsoft® Word. use of the Microsoft®Word tables is encouraged.

Cite the source of the industry/competitor ratio information.

Format your assignment consistent with APA guidelines.