PEPSI-COLA

HISTORY

• Created in the late 1893’s by Caleb

Bradham, a New Bern, N.C.

Pharmacist.

• Fun fact: Its roots was from the

word dyspepsia meaning

“indigestion.”

• On august 28, 1898, Bradham

renamed his drink “Pepsi-cola."

• On June 16, 1903, “Pepsi-cola"

became an official trademark.

• Pepsico, Inc., was established

through the merger of Pepsi-cola &

Frito-lay, Inc., in 1961.

GOAL

• To continue build new capabilities, and

to meet the demands of customers and

consumers.

• To focused on increasing the e-

commerce presence and capabilities.

• To continue to invest in research and

development and design to foster

breakthrough innovations.

• To enhance consumer experiences

across the global business.

MISSION

• Help people lead healthier lives in

three important ways:

Product choices offered.

Information provided in the products.

Way their market the products.

By providing customers with:

Delicious, affordable, convenient and

complementary foods and beverages

from wholesome breakfasts to healthy

and fun daytime snacks and beverages

to evening treats.

Strengths Weaknesses It has continuously increased its dividend

payout every year.

Debt and credit issues, and currency

fluctuations in countries of operations.

Investing is reliable in dividend stocks.

Its ability to generate strong cash flow.

Restrictive exchange control regulations and

reduced access to dollars.

Has paid a dividend every year since 1952.

“Investing is reliable in dividend stocks.”

Lack of exchangeability between the currency in

certain countries and the dollar.

Exceptional returns in previous years Limited abilities to import certain raw materials.

It has increased its payout for the past 42

consecutive years.

Can result in full impairment charges of billions

of dollars and millions related to the

reclassification of cumulative losses.

Opportunities: Threats: Ongoing productivity. Uncertainties in countries in which the products

are operated and sold.

Effective implementation of meaningful cost

saving opportunities and efficiencies, including

the use of derivatives.

Challenging environment, experiencing unstable

economic, political and social conditions.

Global purchasing programs with fixed-price

contracts, purchase orders, and pricing

agreements.

Civil unrest in some territories of operations.

To continue to monitor the economic, operating

and political environment in the markets closely.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

OPERATING, INVESTING, AND FINANCING ACTIVITIES FROM PEPSICO:

OPERATING

The operating activities are the result

from the Global organic snacks and

beverages retailing. Working capital

needs are impacted by weekly sales.

During 2015, net cash provided by

operating activities was $10.6 billion

and it reflects favorable comparisons to

the prior year.

INVESTING

During 2015, net cash used for

investing activities was $3.6 billion,

primarily reflecting net capital

spending of $2.7 billion, a reduction of

cash of $568 million due to the

deconsolidation of Venezuelan

subsidiaries and net purchases of debt

securities greater than three months of

$317 million.

FINANCING

During 2015, net cash used for

financing activities was $3.8 billion,

primarily reflecting the return of

operating cash flow to shareholders

through dividend payments and share

repurchases of $9.0 billion, partially

offset by net proceeds from long-term

debt of $4.6 billion and proceeds from

exercises of stock options of $0.5

billion.

Current Ratio= dollar to cover Liability

Accounts Receivable Turnover= times

cash is collected

Debt To Equity= how much a

company is leveraged by debts and

shareholders

Return on Equity= return

shareholders get from the business

Price-to-Earnings = TO 1 per share

earning

Current Ratio= 1.24 dollar to cover Liability

Accounts Receivable Turnover= 10.54

times cash is collected

Debt To Equity= 2.49 how much a

company is leveraged by debts and

shareholders

Return on Equity= 14% return shareholders

get from the business

Price-to-Earnings = 26 to 1 per share

earning

Current Ratio= 1.31 dollar to cover Liability

Accounts Receivable Turnover= 9.64 times

cash is collected

Debt To Equity= 4.79 how much a company

is leveraged by debts and shareholders

Return on Equity= 30% return shareholders

get from the business

Price-to-Earnings = 28 to 1 per share

earning

CONCLUSION: PepsiCo is worth owning for its growing dividend and rich history of

creating shareholder value through payouts and share repurchases. Last

year, Pepsi rewarded shareholders by providing attractive cash returns to

shareholders with a total of $9 billion in dividends in 2015, raising its

annual dividend by 7.3% In addition, the core net return on invested capital

stands at 19.6% at the end of 2015 . It means that PepsiCo has

continuously increased its dividend payout every year for at least the past

25-years giving peace of mind to shareholders.