Refer to the 2011 segment information for PepsiCo given in Exhibit 19-4. 1. Compute operating profit margin

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Refer to the 2011 segment information for PepsiCo given in Exhibit 19-4.

1. Compute operating profit margin (Operating profit/Net revenue) for 2011 for each of the following:

(a) Frito-Lay North America,

(b) Quaker Foods North America,

(c) Latin America Foods,

(d) PepsiCo Americas Beverages,

(e) Europe,

(f) Asia, Middle East & Africa.

2. For each of the segments listed in (1), compute asset turnover (Net revenue/Total assets).

3. Given your calculations in (1) and (2), what is your analysis of the different segments of PepsiCo?

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
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Intermediate Accounting

ISBN: 978-1133957911

19th edition

Authors: Earl K. Stice, James D. Stice

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