Business Anaysis: Assets and Notes Receivable at PesiCo

Ratio analysis The current ratio of Coca-Cola from 2011 to 2013 is above zero. If the current ratio falls below 0, we indicate difficulties in fulfilling short-term debt and the possibility of increasing liquidity risk. PepsiCo's average flow ratio for three years is 1, which is exactly the same as 1.09 for Coca-Cola. This suggests that Pepsi and Coca-Cola have sufficient short-term assets to cover their short-term liabilities, but Pepsi's current ratio is less than zero in 2011.

The quick ratio is an alternative indicator of liquidity and does not include inventory of current assets. Current assets used in the Quick Ratio are cash, accounts receivable, and notes receivable. These assets are basically the current assets minus inventory. Speed ​​ratio is often referred to as acid test ratio. Asset management ratio The asset management ratio is the key to analyzing the effectiveness and efficiency of SME managed assets and generating sales. Asset management ratio. It is also called rotation rate or efficiency ratio. When a company uses a large amount of money to purchase assets, the working capital of the company will be high. If the company does not invest, sales will decline, affecting the company's location through cash flow gains and stock prices. The asset management ratio tells the company how efficient and efficient it is to generate revenue from assets.

Current and fixed. Current assets are assets that will expire within one year. Cash, accounts receivable, inventory, notes receivable, prepaid expenses and other current assets. Fixed assets are physical assets with an average life expectancy of more than 1 year, such as improvement of land, buildings, machinery equipment, furniture and fixtures, and leasing. The balance sheet shown in Figure 16.7 uses USAR. All restaurants that use the USAR Act on the balance sheet will adopt this format developed under the directions of the National Restaurant Association.