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Therefore, Coca-Cola is delivering a higher value to shareholders than Pepsi Co. Pepsi-Co’s ensures partnerships and acquisitions add significantly to the shareholder value.

This is a financial comparison between Pepsi and Coca Cola in terms of company liquidity, solvency, asset management, profitability, and valuation between the years 2008 and 2009 respectively.

The current cash debt ratio only measures the ability of a firm 's cash, along with investments easily converted into cash, to pay its short-term obligations. In 2007, the company has a current cash debt ratio greater than 1 and is in better financial shape than in 2006, when the ratio was less than 1.

The rate of growth for PepsiCo has been pretty much more as compared to that of Coca Cola. The rate of increase in revenue of both the Coca Cola and PepsiCo was 6.26% and 11.11% respectively. In 2004, the cost of goods sold was $11031 while it was $12314 in the year 2005. The increased in sales lead to an increase in the cost of goods sold. In comparison to 2004’s data, the cost of goods sold stood at 111.63%. On the other hand Coca Cola had the cost of goods sold in 2004 at $7674 and in 2005 at $8195; and if seen in terms of percentages, for Coca Cola, the total cost of goods sold was $ 106.79%, which shows that an increment of 6.79% was seen in the year 2005 as compared to that of 2004.

Debt to equity ratio measures the extent to which an organisation makes use of debt to finance the assets relative to shareholders equity. A company with higher debt to equity ratio indicates more reliance on the creditor financing in comparison to investor financing.

IFP, Indonesia shows that the debt ratio are only 30%, where it means creditors only supplies one third of the company's total financing. This is consider low, where average company usually have 40% debt ratio.

* Debt ratio- a ratio that indicates what proportion of debt a company has relative to its assets. The measure gives an idea to the leverage of the company along with the potential risks the company faces in terms of its debt-load.

The above table shows that the debt to equity ratio is < 1, this means that there is no more debt than equity. The debt ratio corresponds to the financial risk, in case of Novartis, debt ratio indicates that the company has more assets than debt. Current ration does not always indicate positive changes; it measures the company’s ability to pay short-term debt and payables, and confirms NVS’ capability to pay its obligations.

Since there are a wide range of products available, the pricing for both Coca Cola and Pepsi is done according to the Market demands and the geographic segment and thus both the products pricing are set around the same level. Neither of the brands can win if they enter into a price war, simply because the cost of manufacturing and transportation is huge. The advantage to either of the companies was if they enter into a brand war. Since, Coca Cola always had competitors constantly driving them to be smarter, better and faster and since they were successfully been existing for more than a century, they have had to remain consistent with their pricing strategy. Throughout the years, Coca Cola has made many pricing decisions, but eventually the ultimate goal is to maximize the shareholder value. Coca Cola uses lower price point to penetrate new markets to face competition and also to raise brand awareness. This strategy is strongly implemented till it repositions itself as the Premium beverage as compared to its competitors.

When comparing the debt-to-assets ratio of McDonalds and Wendys, you have to divide the firms total liabilities by their total assets. Essentially, the debt-to-assets ratio is the primary indicator of the firms debt management. As the ratio increases or decreases, it indicates the firms changing reliance on borrowed resources. The lower the ratio the more efficient the firm will be able to

As mention before, Coca-cola has 47.3 percent market share in the country’s cola market versus Pepsi which hold 44.5 percent. Coca-cola is also the brand known around the worlds, which are the largest producer and distributor of ark colas in the world. Even in the current monetary crisis, the company continues to expand and the financial position shows that Coca-cola has a strong cash position in compare to PepsiCo which the long term debt of PepsiCo is so high.

The Debt to Equity Ratio measures a company’s financial leverage, how much debt a company is using to finance its assets represented in shareholders’ equity. This ratio is important to a potential creditor because it shows the percentage of company financing that comes from creditors and investors. The Debt to Equity Ratio for GAP in 2016 was 1.94 and 1.58 in 2015. The debt to equity ratio for Abercrombie was 0.88 in 2016 and 0.80 in 2015. A lower debt to equity ratio for Abercrombie, being on the decrease, reveal a more financially stable business than for

Although PepsiCo’s current assets grew their current liabilities also grew, which leads me to believe that Coca-Cola is more poised to grow as a company in the future. I believe there is room for both of these companies to fix their financial status in these areas. PepsiCo needs to find a way to increase their current assets without raising their current liabilities and Coca-Cola need to find a way to increase their current assets while maintaining their steady drop in current liabilities.

PepsiCo and Coca-Cola are fierce competitors and according to their financial statements they are both healthy companies. Therefore I would invest in Coca-Cola if I had to make the decision because it has higher income, a stronger long-term debt to networking capital ratio, steadily rising net income per common share, and a climbing and high solvency ratio. PepsiCo still shows healthy growth and outperforms Coca-Cola in many areas. I will conduct a financial analysis of Coca-Cola and PepsiCo to identify their strengths and weaknesses, ultimately deciding which one is worth the investment.

Debt ratio helps in comparing total assets and total liabilities. If you have more liabilities it means you have lesser equity and therefore an increased leverage position.