Title Of Project

“ A Study On Ratio Analysis ”

PepsiCo Pvt. Ltd.

Presented By :
Rahul Mehta
Roll No. - 201837
 Beverage industry is one of the fast growing industries in India .it can be
divided into two sections i.e. carbonated and non-carbonated. The carbonated
drinks that can be further classified into cola, lemon, orange, mango and apple
segments
The beverage market has still to achieve greater penetration and also a
wider spread of distribution. It is important to look at the entire beverage market,
as a big opportunity, for brand and sales growth in turn to add up to the overall
growth of the food and beverage industry in the economy.
 PepsiCo was founded in 1965 through the merger of Pepsi-Cola and
Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with the Quaker
Oats Company, including Gatorade, in 2001.
PepsiCo entered India in 1988 and has grown to become one of the
country’s leading food and beverage companies. One of the largest multinational
investors in the country, PepsiCo has established a business which aims to serve
the long term dynamic needs of India.

PepsiCo is a world leader in convenient foods and

beverages, with 2019 revenues of more than
$ 64660 Million and 2,63,000 employees.
 Pepsi

 7UP

 Gatorade

 Mountain Dew

 Nimbooz

 Slice
 Tropicana

 Mirinda
 Aquafina
 Mission :
Company mission is to be the world's premier consumer Products
Company focused on convenient foods and beverages. We seek to produce financial
rewards to investors even as we provide opportunities for growth and enrichment to
our employees, our business partners and the communities in which we operate. And
in everything we do, we strive for honesty, fairness and integrity.
 Vision :
Company vision is put into action through programmes and a focus on
environmental stewardship, activities to benefit society and a commitment to build
shareholder value by making PepsiCo a truly sustainable company.
To analyse liquidity position of the company.

To determine the efficiency management in inventories , fixed assets &

debtors.

To determine the solvency position of company.

To analyse the company's profitability.

To give suggestions for the financial soundness of the company by analyzing
various ratio.
 Sources Of Data Collection :
Secondary data is used for the
analysis of financial performance of the company . The major source
of data for this project was collected through various financial
statements of the company .

 Statement Of Profit & Loss

 Cash Flow Statement
 Balance Sheet
 Data Analysis
& Interpretation
 Current Ratio :
Current ratio is a liquidity ratio that measures a company’s
ability to pay short-term obligations or those due within one year.
Current Ratio = Current Assests
Current Liabilities
Year Current Current Current Ratio
Assets Liability
2014-15 23955.03 11681.91 2.05 : 1
2015-16 24134.74 14587.86 1.65 : 1
2016-17 24537.39 6830.07 3.59 : 1
2017-18 24503.00 8856.60 2.76 : 1
2018-19 29568.96 9621.56 3.07 : 1
 Graph Of Current Ratio

35000

30000

25000

20000
Current Assets

15000 Current Liabilities

10000

5000

0
2014-15 2015-16 2016-17 2017-18 2018-19
Quick ratio :
Quick ratio may be define as the relationship between quick assets and
current liabilities. Inventres and prepaid expenses are not included in quick assets because they
can not be converted in to cash immediately.
Quick Ratio = Quick Assets
Quick Liabilities.
Year Quick Assets Quick Liabilities Quick ratio

2014-15 21981.72 9621.56 2.28 : 1

2015-16 17265.85 8856.60 1.94 : 1

2016-17 16673.40 6830.07 2.44 : 1

2017-18 17304.67 14587.86 1.07 : 1

2018-19 16118.27 11681.91 1.37 : 1

Source : Balance Sheet
 Graph Of Quick Ratio
25000

20000

15000
Quick Assets
Current Liabilities

10000

5000

0
2014-15 2015-16 2016-17 2017-18
 Debtors Turnover Ratio :
Debtor's Turnover Ratio is an accounting measure used to
measure how effective a company is in extending credit as well as collecting debts. The receivables
turnover ratio is an activity ratio, measuring how efficiently a company uses its assets.
Debtors Turnover Ratio = Net Sales
Average Debtors
Year Total sales Debtors Ratio ( In Times
)
2014-15 38050.53 2722.40 10.21
2015-16 38641.13 2686.35 12.73
2016-17 42074.59 3207.50 13.11
2017-18 42757.38 3357.01 14.38
2018-19 47480.19 4646.22 13.97
Source : Balance Sheet & Statement of profit and loss
 Graph Of Debtors Turnover Ratio

45000

40000

35000

30000

25000
Net Sales
20000 Debtors

15000

10000

5000

0
2014-15 2015-16 2016-17 2017-18
 Fixed Assets Turnover Ratio :
Fixed-asset turnover is the ratio of sales to the value of
fixed assets. It indicates how well the company is using its fixed assets to generate sales.
Fixed Assets Turnover Ratio = Net Sales
Fixed Assets
Year Totat Sales Fixed assets Ratio ( In Times )

2014-15 38050.53 16292.63 2.33

2015-16 38641.13 16705.36 2.31

2016-17 42074.59 18417.26 2.28

2017-18 42757.38 20591.57 2.07

2018-19 47480.19 21887.76 2.16

Source : Balance Sheet & Statement of profit and loss

 Graph Of Fixed Assests Turnover Ratio

50000

45000

40000

35000

30000

25000 Net Sales

Fixed Assets
20000

15000

10000

5000

0
2014-15 2015-16 2016-17 2017-18 2018-19
 Debt To Equity Ratio :
The debt-to-equity ratio (D/E) is a financial ratio indicating the
relative proportion of shareholders' equity and debt used to finance a company's assets.
Debt To Equity Ratio = Debts
Equity

Year Debts Equity Ratio

2014-15 1522.94 801.55 1.9 : 1

2015-16 1770.38 804.72 2.2 : 1

2016-17 2065.05 1214.74 1.7 : 1

2017-18 1708.60 1220.43 1.4 : 1

2018-19 1348.44 1225.86 1.1 :1

Source : Balance Sheet

 Graph Of Debt To Equity Ratio

2500

2000

1500

Debts
Equity
1000

500

0
2014-15 2015-16 2016-17 2017-18 2018-19
 Gross Profit Ratio :
Gross profit ratio is a profitability ratio that shows relationship between
gross profit & net sales revenue. It is a papular tool to evaluate the operational performance of business.

Gross Profit Ratio = Gross Profit (100)

Net Sales
Year Gross Profit Net sales Ratio
2014-15 13997.52 38050.53 36.78 %
2015-16 14958.39 38641.13 38.71 %
2016-17 15502.96 42074.59 36.84 %
2017-18 16438.80 42757.38 38.44 %
2018-19 18444.16 47480.19 38.84 %
Source : Statement of profit and loss
 Graph Of Gross Profit Ratio

39.00%

38.50%

38.00%

37.50%

Gross Profit Ratio

37.00%

36.50%

36.00%

35.50%
2014-15 2015-16 2016-17 2017-18 2018-19
 Net Profit Ratio :
Net profit ratio expresses the relationship between net profit after taxes and
sales. This ratio is a measure of the overall profitability. The ratio indicates what portion of the net sales is
left for the owners after all expenses have been met.
Net Profit Ratio = Net Profit ( After Tax ) (100)
Net Sales

Year Net Profit After Tax Net Sales Ratio

2014-15 9607.73 38050.53 25.24 %
2015-16 9844.71 38641.13 25.47 %
2016-17 10200.90 42074.59 24.24 %
2017-18 11223.25 42757.38 26.24 %
2018-19 12464.32 47480.19 26.25 %
Source : Statement of profit and loss
 Graph of Net Profit Ratio

26.50%

26.00%

25.50%

25.00%
Net Profit Ratio

24.50%

24.00%

23.50%

23.00%
2014-15 2015-16 2016-17 2017-18
 Return On Equity Ratio :
The Return on Equity (ROE) ratio is a profitability ratio used
for measuring the return that an organization earns on shareholder‘s equity.
ROE = Net Profit After Tax (100)
Shareholder’s Fund
Year Profit After Tax Shareholders Ratio ( In % )
Fund
2014-15 9607.73 9618.6 99.88
2015-16 9844.71 9656.64 101.94
2016-17 10200.90 14567.88 70.02
2017-18 11223.25 14645.16 76.63
2018-19 12464.32 14710.32 84.73

Source : Balance Sheet & Statement of profit and loss

 Graph Of Return Net Worth

120

100

80

60
Return On Equity

40

20

0
2014-15 2015-16 2016-17 2017-18 2018-19
 FINDINGS
The liquidity position of the firm is good in the year 2018-19 as compared to
previous years 2014 - 2018.
The management of debtors and fixed assets is satisfactory but not good in the
year 2018-19 as compared to previous years 2014 - 2018.
The company has raised less debt as compared to previous years , thus solvency
position of the company is satisfactory but not efficient in the year 2018-19.
The gross profit is increasing due to decrease in cost of goods sold& showing
increasing trend from comparison of previous five year 2014-19 .
The net profits of the company is showing increasing trend & increased by 0.01%
in the year 2018 - 19 .
 The company have satisfactory current ratio so it should mantain its current ratio
where it can meet its short term obligation smoothly.
The company should look over the efficient management of fixed assests through
establishing standard operation practices & strong internal control.
The company should raised its debt capital so that it can help in efficient
utilisation of capital & effective solvency position.
The company should look over on optimum production process so that
production cost will minimum & it will helps in maintaining the profitability.
CONCLUSION
धन्यवाद …