Comparison of Financial Conditions Between Coca-Cola and Pepsi Co

6735 Words Jan 13th, 2011 27 Pages
Comparison of financial conditions between Coca-Cola and Pepsi Co.

Statement of the issue
This report will focus on the comparison of financial conditions, especially their profits statements between Coca-Cola and Pepsi Co. for their stakeholders, like consumers, shareholders, manager, investors, and employees, creditors and lenders.

Objectives of the project
Two objectives are built to be achieved before 30th, December 2007. The major one is to help the stakeholders to know why these two companies are so successful in the past three years (2004-2006) by analyzing their financial conditions. The other one is to find these two companies’ own advantages and disadvantages by comparison.

To fulfill the above two objectives, the following
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·Log on to the websites.
It is quite easy to get amount of secondary data through the websites, like companies’ annual reports can be loaded from these two companies’ websites. Also, other people’s opinions which related to Coca-Cola and PepsiCo can be founded.

·Enquiry in the library.
It is really convenient to get books or magazines in terms of finance and analyze as libraries always classified data clearly, and the relevant references often beyond our expectation which provide us more choices, more knowledge and skills.

Statement of criteria
Based on the knowledge we learned from our text books, Business Accounting: an introduction and Business Accounting: advanced, two criteria will be used to assess the implications of the issue as follows. • Absolute numbers In comparing financial statements for a number of years, it is prefer to use a variation of absolute numbers analysis which involves computes percentage changes from year to year for all financial statement. To analysis this more directly, one or two pictures of their trend will be drawn. A continuously increased extend will be expected. Also, the ratio analyze will be used. • Ratios Ratio analysis ensures the possibility of comparison of items on one or two financial statements. After calculating ratios for each year’s financial data, this report can examine the trends for each company. A relatively stead increasing trend will be expected.

Investigation
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