Financial Analysis of Coke and Pepsi

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Financial Analysis Synopsis In this paper, you will find financial comparisons on both PepsiCo and the Coca-Cola Corporation. Some increases in certain areas of one company and some decreases in areas of another company. There are vertical analysis, horizontal analysis, and ratios of both the industries. These are still the two leading soft drinks in the industry, and most like will remain the leaders in the upcoming years. Financial Analysis The purpose of this paper is to provide a financial analysis comparison between PepsiCo and the Coca-Cola Cooperation. Many companies are forever finding ways to improve market value to increase sales, and income. Consumers will always look for deals or special buys to not only save them…show more content…
Coca Cola’s increase in 2004 was $1,420,000. Their increase in 2005 was $1,424,000. That is a difference of $4000, which was not as much of an increase. This means that the demand for the Coca-Cola Corporation products was not as high as the demand for the PepsiCo products. This could be due to the sales that were being made on each product. Coca-Cola may not have been selling as much of their products as Pepsi. Looking at the cash flow for both companies, you can see that there was an increase in one company and a decrease in the other company. PepsiCo had an increase from 2004 to 2005. The amount of the PepsiCo cash flow in 2004 was $1,280,000. The cash flow for 2005 was $1,716,000. The difference is $436,000. The Coca-Cola cash flow actually decreased from 2004 to 2005. The amount of the cash flow for Coca-Cola in 2004 was $6,707,000 and was $4,701,000 in 2005. The difference was $2,006,000. PepsiCo had a better increase in cash flow than Coca Cola’s decrease. Both companies’ did have an increase in Accounts receivables though. The Accounts Receivable for PepsiCo in 2004 was $2,999,000. The Accounts receivable in 2005 was $3,261,000. This was an 8.74 or 9 percent increase. The Accounts Receivable for the Coca-Cola Corporation in 2004 was $2,244,000. The amount in 2005 was $2,281,000. This was an 8.2 or 8 percent increase. The decrease in the Coca-Cola Corporation could be due to marketing they have or lack of proper marketing. PepsiCo is
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