FIN 550 Module One Activity Template Spreadsheet

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San Diego State University *

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550

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Finance

Date

Jan 9, 2024

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xlsx

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RATIO ANALYSIS 2022 Note: change the column names to your industry and selected companies RATIOS Beverages PepsiCo Profitability Ratios (%) Gross Margin 53.47 EBITDA Margin 19.87 Operating Margin 12.93 Pre-Tax Margin 14.21 Effective Tax Rate 15.33 Financial Strength Quick Ratio 0.61 Current Ratio 0.8 LT Debt to Equity 2.06 Total Debt to Equity 4.33 Interest Coverage 0.33 Valuation Ratios Price/Earnings Ratio 23.05 Price to Sales P/S 2.84 Price to Book P/B 14.51 Free Cash Flow per Share 7.83 Management Effectiveness (%) Return On Assets 9.74 Return On Investment 16.96 Return On Equity 51.98 Efficiency Receivable Turnover 8.5 Inventory Turnover 7.77 Total Asset Turnover 0.94 Free Cash Flow/Net Income 8910000 What is Ratio Analysis? Briefly explain and cite your resources: Ratio Analysis is a method According to Investopedia Ratio Analysis is described as, “a quantitative method of gainin income statement”. These ratios provide a great view of a company’s operational efficien Ratio analysis is a crucial tool for stakeholders to assess the company’s financial condition analysis plays a crucial role in financial statement analysis.

Based on the ratio analysis above, in which company would you be willing to invest and w PepsiCo. I choose to invest into PepsiCo because their return on equity and return on inve would invest into Pepsico.

Coca Cola 58.14 28.23 25.5 28.52 18.1 0.93 1.15 1.41 2.59 0.84 26.24 6.29 11.42 2.55 10.32 15.39 37.06 12.33 4.25 0.046 9542000 of financial analysis that e ng insight into a company’s ncy, and financial stability. n. With ratio analysis stake

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why? Based on the informa estment is higher than that

ANALYSIS Coca cola has a higher Gross Margin Coca Cola has a higher EBITDA Margin Coca Cola has a higher Operating Margin Coca Cola has a higher Pre-Tax Margin Coca Cola has a higher Effective Tax Rate Coca Cola has a higher Quick Ratio Coca Cola has a higher Current Ratio PepsiCo has a higher LT Debt to Equity PepsiCo has a higher Total Debt to Equity PepsiCo has a lower Interest Coverage Coca Cola has a higher Price/Earnings ratio Coca Cola has a higher Sales P/S Coca Cola higher Price to Book P/B Pepsi Cash flow has higher Free Cash Flow per Share Coca Cola has a higher Return on Assets PepsiCo has a higher Return on Investmnet PepsiCo has a higher Return on Equity Coca Cola has a higher Receivable Turnover PepsiCo has higher Inventory Turnover PepsiCo has higher Total Asset Turnover Coca Cola has a higher overall Net Income evaluates a company’s financial performance and health by viewing various ratios that come from its financial statements. s liquidity, operational efficiency, and profitability by studying its financial statements such as the balance sheet and eholders can compare and contrast against competitors and make necessary adjustments where it is needed. Ratio

References ation given above I would invest in PepsiCo. Although Coca Cola is statistically better in almost every category I still choose t of Coca Cola. Overall I believe Coca Cola to be the better company but as an investor and looking to make money I

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