The Financial Statement Analysis of PepsiCo

This article analyzes the business strategy and financial performance of PepsiCo. PepsiCo is the global branded leader in beverage and convenient food industry, including leadership positions in Mexico, China, and several Western European markets. Although the impact of the novel coronavirus has decreased in 2021, its profitability performance is getting worse while the beverage industry is growing at a compound annual growth rate of 1.7% in 2021. It is worth to take a deep look at PepsiCo’s performance to gain an understanding of why PepsiCo’s profitability performance is contrary to industry performance and whether PepsiCo has potential to seize opportunities and perform better in the future. We identify PepsiCo strategies by using SWOT analysis and give a general strategy that PepsiCo has been taken. Next, we demonstrate common-size analysis and ratio analysis on its financial statement. Finally, we project the following five years’ revenue for PepsiCo. The analysis reveals the PepsiCo has ability to operate well and generate revenue in the future. Hopefully, the article could help companies that are experiencing the COVID-19 pandemic, and stakeholders could have a fresh and long-term perception on PepsiCo.