Financial Ratio Analysis Coca Cola Company - 1608 Words

Financial ratio, also known as accounting ratio, entails a relative magnitude of any two values, in this case â€Å"numerical† obtained from a firm’s financial statement. They are basis of valuing a company hence it’s a complex task that requires a critical analysis of various components of financial ratio such as profitability ratio, debt ratio, investment valuation ratio, operating performance ratio, cash flow indicator ratio and liquidity measurement ratio. Therefore, the following financial ratio analysis shall value Coca-Cola consolidated company and PepsiCo Inc. (PEP) through a critical comparison based on their asset utilization, profitability, debt management, market ratio and liquidity. Status of the companies (trend and financial ratio) Coca-Cola Company is the largest beverage company in the world where in 2009, Fortune 2009 survey announced the company as number one brand in the world. (Yahoo Finance, 2015)The company has it’s headquarter in Atlanta, Georgia with satellites operation over 250 countries globally. Hence, the following is a trend and financial ratio analysis of Coca-Cola Company. Asset Utilization and Liquidity Current ratio Current ratio =(current assets)/(current liabilites) The following table reflects the trend of Coca Cola Company for the past four years (Morningstar., 2015). Current Ratio Year 2012 2011 2010 2009 Current ratio 0.71 0.66 0.67 0.65 The current ratio of coca cola has been increasing since 2009 reflecting that the company hasShow MoreRelatedXacc 280 Final1214 Words   |  5 PagesFinancial Analysis Coca-Cola and PepsiCo XACC/280 Financial Analysis An official financial analysis for a specific company needs two years of financial data from the company and from a competitor in the same industry. This financial analysis is between PepsiCo, Inc. and Coca-Cola. Pepsi and Coca-Cola dominate the beverage market worldwide. In addition to sodas, they also distribute a variety of water and energy drinks. BasedRead MoreA Diagram Of The Historical Returns On Equity And Assets1159 Words   |  5 Pagesand assets for both Coca-Cola and PepsiCo ranging from 1981 to 2000. One of the important findings in this diagram is that PepsiCo had almost doubled their return on equity from 1996 to 2000. PepsiCo was able to rise from 17% all the way to 30% by 2000. Interestingly Coca-Cola during that same time had their return on equity drop from about 57% to 24%. When looking at both companies during this time period investors must be careful and notice what competition can do to a company that owns most of theRead MoreFinancial Analysis of Pe psi Co and The Coca Cola Company Essay850 Words   |  4 Pagesinvestment into any company, you would need to first take the time to review and study the financial records of the company. I have been given the opportunity to review the financial records of two major companies; Pepsi Co and The Coca Cola Company and decided which company is more financially sound. In order to make the best choice, I will look at the three financial statement analyses on each company and compare them. The three tools of financial statement analysis that I will review areRead More Financial Analysis: PepsiCo Beats Coca-Cola Essay examples1704 Words   |  7 PagesPepsi vs. Coke the epic battle that every American and from the looks of their financial statements possibly everyone in the world must deal with does it have a winner. For the fiscal year 2005 it certainly does through analyzing financial statements with vertical, horizontal, and ratio analysis investors are able to clearly decide who the better choice for their investment is. By careful scruitiny and attention to detail any investor can safely put their money in a buiseness as an investment soRead MoreEssay on BSA555 Struense Richard WK 5 Financial Ratios Coca Cola1312 Words   |  6 Pages Week 5 – Financial Ratios – Analysis: Coca-Cola Richard Brent Struense Averett University Strategic Management – BSA555-M703-SP15 Instructor: Dr. Philip R. Sturm April 9, 2015 Executive Summary The purpose of this analysis is to identify the financial strategy and performance of the Coca-Cola Company, Pepsi, and Monster. Financial ratios are correlations established from a firm’s financial information and used for comparison purposes. Generalized financial ratios include LiquidityRead MoreFinancial Analysis of PepsiCo and Coca Cola1259 Words   |  6 PagesFinancial Analysis of PepsiCo and Coca Cola XXX XACC 280 University of Phoenix Financial Analysis2 Financial Analysis of PepsiCo and Coca Cola PepsiCo and Coca Cola are two major companies that manufacture beverages. They compete to be the number on manufacturer and distributor of beverages in the world. These two companies are very identifiable in this market and you know them as PepsiCo and Coca Cola. These two companies have undoubtedly dominated the marketsRead MoreEssay on Xacc 280 Week 9 Final1627 Words   |  7 PagesCoca-Cola VS. PepsiCo Elizabeth Hendley XACC/280 September 4th 2011 Charmaine Arjoon- Ramjattan, Ph.D Coca-Cola VS. PepsiCo When determining which company has the most to offer it is necessary to look at each set of numbers from several different views. For instance this paper will cover vertical and horizontal analysis, profitability, solvency, and liquidity ratios. I will be explaining how each set of results play into the decision making of which company would be best to invest in, byRead MoreAt Financial Comparisons Between Pepsico, Inc., And Coca Cola801 Words   |  4 Pagesplace of an analyst and perform an analysis and provide a recommendation to management. The aim of this analysis is to arrive at financial comparisons between PepsiCo, Inc., and Coca Cola. I will be applying both vertical and horizontal analysis to help form my opinion. With that said, let’s move ahead with my analysis. To begin, let’s discuss the two company histories. PepsiCo, Inc. was established through the merger of Pepsi-Cola and Frito-Lay. Pepsi-Cola was created in the late 1890s by CalebRead MoreAmerican Corporation Analysis957 Words   |  4 Pagesï » ¿ Comparative Analysis During this comparative analysis on Pepsi Corporation (Pepsico), I will utilize the intracompany basis, intercompany basis, and industry averages to analyze Pepsi Company’s financial performances. Next, we will calculate the ratio analysis to measure profitability and liquidity. PepsiCo made a power move and acquired Diet Mountain Dew, Brisk and Starbucks to increase revenues in 2012. Intracompany Basis PEPSI (PEP) 2013 2012 2011 Amount Percent TotalRead MoreCoca Cola Vs. Pepsico1144 Words   |  5 PagesCoca-Cola vs. PepsiCo Coca-Cola is a leading beverage industry in the United States and many other countries in the world. PepsiCo is also a leading worldwide beverage company, but they are also the parent company of the Frito-Lay and Quaker Oats Companies. This makes PepsiCo a leader in the beverage, snack and cereal industries. As consumers, we have indulged in their products for many years. My personal preference has always been Pepsi over Coke, which is why I was very interested in conducting