Coca Cola Vs. Pepsico

1. Liquidity ratios are a class of financial metrics that is used to determine a company's ability to pay off its short-terms debts obligations. Generally, the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-term debts.

Liquidity ratios refer to the company's assets in comparison to their financial obligations and its ability to sustain sufficient capital for the near future. Overall, the higher the liquidity ratio is, the better. However, a company would not want a very high ratio since that would mean they are not using their resources to maximize their fullest potential.

Liquidity represents a company’s ability to pay its short-term obligations. In the following schedule is the calculation of the ratios that are indicators of the liquidity position of a company.

According in Michael Pollan in his article the one who are benefit are the drink and food industry are the one who are benefits from this it very cheap to buy and they use it from add it to drinks or candies and they also add it in the food which the cow eat. The one who are benefit it are the big companies which are Coca Cola, Mcdonald, both of those companies are buying corn to add into their drinks and foods, Coca Cola use it corn on their drinks and mostly the whole drink has lots of corn, but the diet drink are the same it still has the same corn level in, Coca Cola sell they drink daily to everyone how much people are drinking it daily and in Mcdonald they using the same movement add meat that has corn inside, bunch of people come and

Since EVA is positive for both proposals, the division 's current EVA would improve by $542,000 and therefore both proposals would be accepted. The decision is also in the best interest of the company.

[pic] |Return on equity (ROE) |29.86 |35.38 |42.47 |32.83 |36.71 | |[pic] |Return on assets (ROA) |9.27 |14.92 |14.29 |16.34 |18.85 | |

Liquidity ratios provide information about a company’s ability to meet short-term financial obligations. It lets you know what resources are available for a company to use in order to run the business. The current ratio and the quick ratio are two often-used liquidity ratios. The current ratio is the ratio of current assets to current liabilities. The current ratio is the simplest and least

Reading the case, special attention should be paid to the underlying economics of the soft drink industry and its relationship to average profits, the relationship between the different stages of the value chain in the industry, the relationship between competitive interaction and industry profits, and the impact of globalization on industry structure.

The carbonated soft drinks' (CSD's) sector is dominated by three major players: Coke is dominant company of the soft drink industry and boasts a global market share of around 44%, followed by PepsiCo at about 31%, and Cadbury Schweppes at 14.7% (Exhibit 3). Separately from these major players, smaller companies such as Cott Corporation and Royal Crown form the remaining market share.

The liquidity of a company is the ability to meet its loan obligations as it relates to its current assets and its current liabilities (Marshall, 2002). Appendix B shows that we have analyzed three important liquidity ratios: 1) Current Ration, 2) Acid Test, and 3) Working Capital. Of these three, the best indicators of liquidity, when trying to show trends, are the Acid test and the Current Ratio. A current ratio of 2 and an acid test of 1.0 are considered "adequate liquidity" (Marshall, 2002). Sample Company's Acid Test numbers for 2000 and 2001 were .84 and .79, and its Current Ratio numbers for 2000 and 2001 were 1.45 and 1.54. Each sets of these ratio figures indicate that Sample Company could possibility have some difficulties in meeting its financial obligations, so these numbers will be important to watch closely in the future.

I have been asked to put myself in the place 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.

The target market is for the sophisticated women, who are educated successful in their career. These women do not want to wear what any common woman is wearing. They want something different but also of a good quality. They do not want to wear mass produced jewelry from China.

5. Withdrew cash for owners personal use – Decrease in cash, decrease in owner’s equity

Liquidity Ratios help us analyze the firm’s ability to meet its short term financial obligations that’s why they are also called short term solvency ratios.

Liquidity ratio gives a picture of a company 's short term financial situation or solvency.