Financial Analysis: PepsiCo and Coca Cola Essay

1820 Words 8 Pages
Together both PepsiCo and Coca Cola are both companies that are known around the world for their goods. For decades now, these companies have been competitive against each other to “do better than” the other one, what some would call the “cola wars”. They individually offer a assortment of soft drinks; regular, diet, caffeine free and many other options for the public to choose from. Both of the companies also have quite a few different entities (or off springs) of their company, such as bottled water, energy drinks, and juices. Individually both PepsiCo and Coca Cola; better known as Pepsi and Coke, have produced goods for every income bracket.
Inside this essay we will take a look into the two largest competing companies in the soft
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Because of global success, both PepsiCo and Coca Cola have paid a price in one way or another regarding legal issues, precedents, and political opinions. Both of these companies are great examples that the power of influence is leadership. Since their influence is so powerful, they easily shut down competitors in the market as well as keep their moral and ethical values at a soaring level.
According to the Forbes Super500 list of America’s largest public companies in 2003, both Coke and Pepsi are practically the same size. Pepsi was the 43rd-largest U.S. firm, just barely edging out Coke, which ranked 44th. This comparison was based on ranking sales, profits, market value and assets. Now let’s take a look at a more detailed comparison of these two companies. Within this analysis, the numbers will be represented in millions (100 is equal to 100 million).
Beginning with a vertical analysis, used to do the comparison of the asset accounts categories, liability account categories, and the reports on liability accounts against asset accounts on the balance sheet. The principle for calculating a vertical analysis is current assets ÷ total assets. The starting point lies within the total assets for each company. In 2004, PepsiCo’s total assets were $27,987; in 2005 they totaled $31,727. Coca Cola’s assets were $31,441 for 2004 and $29,427 in 2005. (Weygandt, Kimmel, & Kieso, 2008).
Now we must look at
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