Financial Accounting Concepts: Pepsico, Inc. and the Coca Cola Company

1836 WordsNov 22, 20108 Pages
Financial Analysis Randall Meeks Financial Accounting Concepts Mr. Carraher 9-12-2010 PepsiCo, Inc. and The Coca Cola Company have both been in production for ages. Both PepsiCo, Inc. and The Coca Cola Company have become common house hold names through out the world today. Pepsi is one of the best selling products in American history. “Pepsi is the number 2 soft drink company producer, the world over. Pepsi’s number one priority is making sure that their shareholders investments are profitable. Pepsi has been able to achieve this goal for the most part via increased sales, keeping cost low, and spending money wisely. Pepsi takes pride in the name, they have built an excellent brand by deliver a product that is satisfying to…show more content…
The total assets were 24% and 29.65%. The current liabilities for The Coca Cola Company were $11,133 and $9.836 in 2004 and 2005. The total assets were 35% and 33.43%. The current liabilities for PepsiCo, Inc increased while the current liabilities for The Coca Cola Company decreased in 2005. The total liabilities for both companies in 2005 were 55.08% and 44.42% of total assets in 2005... The equity for PepsiCo, Inc. was 48% assets in 2004 and 44.92% assets in 2005. In 2005 PepsiCo, Inc. share holder’s holdings reduced. The equity shares were 55.58% of assets in 2005 for The Coca Cola Company while in 2004, there were only 51% equity shares. The Coca Cola Companies equity shares were more in relative value as compared to PepsiCo. Horizontal Analysis Consolidated Income Statements The total revenue for PepsiCo, Inc in 2005 and 2004 were $32,562 and $29,261. PepsiCo, Inc had a considerable amount of net revenue in 2005 compared to 2004. The base year of analysis is 2004. The net revenue for PepsiCo, Inc. was 111.11% in 2005. The total revenue for The Coca Cola Company in 2005 and 2004 were $23,104 and $21,742. Both 2005 and 2004’s revenues were less than PepsiCo, Inc. The net revenue of the company in 2005 was 106.26% over 2004. The net revenue for 2005 was 6.26% while 2004 was less. The growth rate of revenue for The Coca Cola Company is less than PepsiCo, Inc. The growth rate of revenue for both PepsiCo and Coca Cola was 11.11% and 6.26%.

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