Refer to the 2007 segment information for PepsiCo given in Exhibit 19-4. 1. Compute operating profit margin

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Refer to the 2007 segment information for PepsiCo given in Exhibit 19-4.
1. Compute operating profit margin (Operating profit/Net revenue) for 2007 for each of the following:
(a) Frito-Lay North America,
(b) PepsiCo Beverages North America,
(c) PepsiCo International, and
(d) Quaker Foods North America.
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: 978-0324592375

17th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

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