Financial Analysis Coca-Cola Verses Pepsico. Inc.

1795 Words May 15th, 2011 8 Pages
Financial Analysis Coca-Cola verses PepsiCo. Inc.
XACC/280

Financial Analysis Coca-Cola verses PepsiCo. Inc. There are many different types of soft drink manufactures in the United States and throughout the world. The two most popular manufactures are Coca-Cola and PepsiCo. They are the two companies that are well known all over the world. These two companies have cornered the soft drink market with their products for many years. Coca-Cola and PepsiCo have kept their prices quite low so they are attractive to all income levels. The marketing of their products (commercials and print) have made their product so attractive that a person just wants to run out and buy the products regardless of their income levels. Each
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We will now look at the balance sheet for each company and compare the current assets and the current liabilities for each company for the 2004 to 2005 timeframe. The vertical analysis yields a percentage of a specific base amount. The base amount will be the total assets for each company. Cokes 2004 current assets were $12,281 which yields a percentage of 39.1% of Cokes total assets. In 2005, Coke’s current assets were $10,250 which yields a ratio percentage of 34.8% of their total assets. This shows a decrease in Coke’s current assets. Pepsi’s current assets in 2004 were $8,639 which yields a ratio percentage of 30.9% of their current total assets. Pepsi’s current total assets for 2005 were $10,454 which yields a ratio percentage of 32.9% of their current total assets. For this timeframe Pepsi had a 2% increase on their current total assets. Now we will look at the current liabilities for each company. Coke’s current liabilities for 2004 were $11,133 which yields a ratio percentage of 35.4% of there current liabilities in 2005 Coke’s current liabilities were $9,836 which yields a ratio percentage of 33.4%. Coke had a decrease in their liabilities between the 3004 to 2005 timeframe. Pepsi’s current liabilities for 2004 were $6,752 which yields a ratio percentage of 24.1%. In 2005 Pepsi’s current liabilities were $9,406 which yields a ratio percentage of 29.9%. Coke’s total liability for 2004 was %15,506 which yields a ratio percentage if
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