I would consider investing $10,000 in PepsiCo Inc. due to various reasons. The company has a high current ratio of 0.984. The ratio indicates that the company has a greater ability to meet its short-term obligations. The company can maximize its current assets to satisfy its short-term debts and payables. It has low exposure to the risk of distress. Also, the company has a high inventory turnover ratio of 16.87. It means the company has sold and replaced the underlying stock or inventory at least 16 times. The ratio indicates that investing in the company is safe since there is a rapid stock movement.
Furthermore, the company has a 7.72% return on assets, which is considerably high. It indicates that the company is highly capable of utilizing its assets to invest and earn profits. Therefore, it would be profitable to invest in the company.
Moreover, the company has a 54.82% gross profit margin in the most recent year. It is very high, indicating that the company is financially healthy. Therefore, investors are assured of continuous profits in the future.
Furthermore, the Pepsico company has a dividend payout ratio of 78.56%. The ratio indicates that the shareholders’ and investors’ pay would be high; hence it is safe and profitable to invest in the company. In addition, the company has a dividend yield ratio worth 118.31. It shows that most of the company’s income is shared with the shareholders and the relevant investors. However, the company has a high debt ratio of 0.8542. It means that borrowing more money would be difficult for the company because it is overleveraged and has poor payment history and creditworthiness. Also, the company has a quick ratio that is less than 1. It indicates that the company would be unable to fully meet its current liabilities and obligations within a short period. The negatives do not mean that the company is not good to invest in and make profits.