Accounting 540, Investment Analysis

This is a financial comparison between Pepsi and Coca Cola in terms of company liquidity, solvency, asset management, profitability, and valuation between the years 2008 and 2009 respectively.

In 1965, PepsiCo was formed by two companies, Pepsi-Cola Company and Frito-Lay, it also become the reason of production of Pepsi company, grain-based snack foods, beverages, and other products. The mainly product of Pepsi is Pepsi-Cola and it is not invented in 1965. The original

Coca Cola and Pepsi are the brands with the highest brand equities. Both, Coca Cola and Pepsi have gone through the highs and lows of their business to reach that position. Coca Cola’s marketing has been changing over time with more and more products being added every day, while Pepsi has implemented several smart marketing strategies to improve its turnover and profits. So, let’s see what were the marketing strategies implemented by Coca Cola and Pepsi.

Pepsi –cola was started in the summer of 1898 in New Bern, North Carolina by Pharmacist Caleb Bradnham. PepsiCo Inc. started in 1965 with the merger of Pepsi-Cola and Frito-Lay. Since then, PepsiCo has continued to grow, adding new brands and product lines meeting the demands of the market. Throughout the years, they have strived and worked toward environmental sustainability. The ability to be financial stable gives PepsiCo the ability to give back and donate to those communities they are located in. PepsiCo’s mission to provide performance with purpose means delivering sustainable growth by investing in a healthier future for people and our planet. PepsiCo is continually increasing their triple bottom line.

Whereas Coca-Cola did show decline in liabilities they had the same trend for current assets. It may be that these two items are directly related and the more current liabilities a business has the more current assets they will have as well but I would like to see a company whose liabilities are less than their current assets like Coca-Cola because it means they are liquid if they went belly up tomorrow they would be able to pay all their debts and still have money left over. So while Coca-Cola declined year over year they would seem to be a more solid investment. However, due to the fact that most of Pepsi-Co’s debt is current that means they are generally smaller amounts and the company is more agile able to adapt more quickly to a changing customer base so with a year over year increase in performance and a market agility I think the winner here is PepsiCo as a small investment could mean large returns due to strategic marketing but it also means volatility so it could result in ruin for the PepsiCo if not handled wisely.

The Coca Cola Company is a multinational company with more than 140,000 employees, the company is in beverage business and its flagship product Coca Cola is considered one of the best soft drink. Coca Cola soft drink is the real revenue generator of the Coca Cola Company. The company was found in 1892 and by 2010 it was reported that the company has the serving of 1.7 billion per day so the company has only grown since its inception. The company is serving its product in more than 200 countries, and the Coca Cola Company owns more than 500 brands, this shows that the graphs of the company is moving upwards and the Coca Cola Company is growing at an immense rate.

PepsiCo and Coca-Cola are fierce competitors and according to their financial statements they are both healthy companies. Therefore I would invest in Coca-Cola if I had to make the decision because it has higher income, a stronger long-term debt to networking capital ratio, steadily rising net income per common share, and a climbing and high solvency ratio. PepsiCo still shows healthy growth and outperforms Coca-Cola in many areas. I will conduct a financial analysis of Coca-Cola and PepsiCo to identify their strengths and weaknesses, ultimately deciding which one is worth the investment.

Coca-Cola and PepsiCo are the two biggest beverage companies in the world. Both companies dominate the beverage industry and are globally recognized by a large and diverse array of consumers. Both are massive industry leaders, each with a market cap of over $150 billion dollars. The Coca-Cola Company is roughly 130 years old and is based in the United States. Coca-Cola products are sold in over 200 countries across the world and every single day billions of coke beverages are consumed. PepsiCo was also established about 125 years ago and is based in the United States. PepsiCo, since its early beginnings, has always rivaled Coca-Cola Company as the most prominent beverage company in the world. Although each of these companies have

PepsiCo is a world leader in convenient snacks, foods, and beverages with revenues of $65 billion and more than 285,000 employees. The company headquarters are in Purchase, New York. PepsiCo products can be found in nearly 200 countries around the globe. The company has 22 brands that each generates more than $1 billion each in annual retail sales. PepsiCo owns some of the world's most popular brands, including Pepsi-Cola, Mountain Dew, Diet Pepsi, Lay's, Doritos, Tropicana, Gatorade, and Quaker. Our brands are available worldwide through a variety of go-to-market systems, including direct store delivery (DSD),

PepsiCo operates in the beverages/soft drinks industry in the consumer goods sector (Yahoo! Finance, 2016). According to Forbes, PepsiCo is rated 29th as the most valuable brand (Forbes, 2016). While Coca-Cola has mostly stayed within the boundaries of the beverage/soft drink industry, only venturing out from soft drinks to include sport drinks, energy waters, and most recently tea and coffee, PepsiCo has done that in addition to adding snack foods to its distribution.

However, lately, with content-rich marketing strategies, bringing meaningful messages, Coca Cola has captured the majority of consumer sentiment. In the middle of the year 2016, Coca Cola accounted for 41% of the beverage market while Pepsi only 22.7%.

The purpose of this report is to compare financial reports from the two largest soft drink manufacturers in the world. The Pepsi Co. and Coca Cola have been the industry's leaders in their market since the early 1900's. I will use relevant figures to determine profitability, and break down key ratios in profitability, liquidity, and solvency. By breaking down financial statements, and converting them to percentages and ratios, comparisons can be made between competitors regardless of size.

PepsiCo, Incorporated is one of the largest Fortune 500 companies in the world. It got its start as the Pepsi Cola Company in 1898 when a pharmacist from Chinquapin, North Carolina. A pharmacist named Caleb Bradham invented the Pepsi Cola soft drink. The soft drink was originally named “Brad’s Drink” but was later renamed “Pepsi-Cola” combining the terms “pepsin” and “cola.” Along with selling the soda concoction the many soda fountains, Bradham also bottled and sold the drink in his own stores. Later, he would shut down his drugstore and focus entirely on the soft drink enterprise. Over the next few years the company would grow, earning more and more distributors in its expansion. By 1910 the company had signed agreements with 250

Companies are subject to risks and uncertainties and The Coca Cola Company is not exempt of this. There are many factors that can affect the company financial condition. I’m including and analyzing some factors that can be useful for the judgment of others.

PepsiCo, Inc. is among the most successful consumer products companies in the world, with 1999 revenues of over $20 billion and 116,000 employees. The company consists of: Frito-Lay Company, the largest manufacturer and distributor of snack chips; Pepsi-Cola Company, the second largest soft drink business and Tropicana Products, the largest marketer and producer of branded juice. PepsiCo brands are among the best known and most respected in the world and are available in about 190 countries and territories. Some of PepsiCo 's brand names are 100 years old, but the corporation is relatively young. PepsiCo, Inc. was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay.