Assignment

Strategic Management
By
Ayeza Arshad
Sec H
15U03016

Ratios

LIQUIDITY RATIOS: 2012

CURRENT RATIO : CURRENT ASSETS/CURRENT LIABILITIES
18720/17089= 1.095:1
ACID-TEST RATIO= CA-INVENTORY/CL
=18720-3581/17089
=0.88:1

DEBT TO TOTAL ASSETS RATIOS

Debt to total assets ratio= total debt/total assets
= 28359/74638
=0.38
Debt to equity ratio= total debt/total equity
= 28359/22294
=1.27
Long-term debt to equity ratio= long term debt/total equity
= 23544/22294
=1.056
Times interest earned ratio= 9112/36
= 253.11
ACTIVITY RATIOS
INVENTORY TURNOVER= 65492/3704
= 17.68 TIMES
Fixed asset turnover = 65492/52632
=1.244
.
Total assets turnover= 65492/74638
=0.877 times
Accounts receivable turnover= 65492/7041
=9.30
Average collection period= 7041/179.43
= 39.24

PROFITABILITY RATIOS
Gross profit margin ratio= 34201/65492
= 0.522x100= 52.22%
Operating profit margin ratio= 9112/65492
= 13.91%
.
Net profit margin= 6178/65492
=9.433%
ROE= 6178/74638
=8.277%
ROE= 6178/22294
= 27.71%
EPS= 6178/1544
= $4
.
PE RATIO= 83/4
= 20.75
 IFE Matrix
Key Internal Factors Weight Rating Weighted Score

Strengths
1- Assets increased 0.05 3 0.15

2- Equity increased 0.07 4 0.28

3- Pepsi co. has the highest 0.10 3 0.30

number of employees 280,000
4- Their revenue is highest among 0.05 3 0.15
their competitors
5- Their Earning Per Share is 0.02 3 0.06
highest among competitors
3.90%
6- Their Stock Price is highest in 0.15 3 0.45
the market
7- Their revenue increased in US 0.05 4 0.20
in 2012
8- Pepsi co. Americas Foods had 0.03 3 0.09
an increased revenue in 2012 of
36.6%
9- Pepsi co. had always expanded 0.02 3 0.06
their products market

Weaknesses
1- Their Net Income decreased 0.10 2 0.20

2- Liabilities increased 0.15 2 0.30

3- Their Net Income is lowest 0.02 1 0.02

among competitors 6.12 billion
4- Their Return On Investment 0.02 1 0.02
8.3% is lower than Coke
5- Their sales decreased 0.04 1 0.04

6- The market share of Pepsi Cola 0.05 2 0.10

9.2% is lower than Coke 17.0%
 7- Their Carbonated Beverages 0.03 1 0.03
had a decrease
8- Their Total Long Term debt 0.05 1 0.05
increased

Total 1.00 2.50