Fin 571 Week 1 Financial Ratio Analysis

Week 1: Financial Statement AnalysisChristina ForresterPhoenixACC/561February 3, 2018Week 1: Financial Statement AnalysisFinancial statements normally include the income statement, balance sheet, statement of cash flows, and a statement of changes in equity. Although financial statements are designed to provide financial information, it is often necessary to analyse the financial statements In order to obtain relevant information. Additional financial information can be obtained from financial statements through ratio analysis. Ratio analysis provides information on the relationship between items in the financial statements (Atrill & McLaney, 2013). These relationships can be compared against peers or with benchmarks to provide information on various aspects of a business. This paper will provide a financial analysis of the financial statements of PepsiCo (PEP).As the table below shows PepsiCo had a net income of $4.857 billion in the financial year ended 2017 (NASDAQ, 2018). This is down 23% from $6.329 billion in the previous financial year 20172016Decrease %Net Income4,857,0006,329,000-23%The change in net income means that there is 23% less for investors to share than in the previous year. Stockholders equity will increase mu a much less amount