Xacc 280 Final

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.

Vertical Analysis -- Comparing financial condition and performance to a base amount. The analysis tools include:

It is imperative that the firm is aware of all activities and view that all information is accurate. Vertical analysis does a comparison of the account with the same time that it is generated, while using the same percentages. A firm can receive valuable information about the liability and how

“When it comes to the king of pop, only Michael Jackson tops Coca-Cola. The soda giant is one of the most recognizable companies in the world, with annual sales north of $45 billion” (Tamara Walsh, TMFSocialME). For years, there has been a “cola war” between Coca-Cola and Pepsi Cola. This has urged cola drinkers to test these two products and compare them in many different areas. Coca-Cola and Pepsi Cola may be the most popular soft drinks in the United States, causing the two to be at war, however, they both have many similarities and differences in terms of sales and social media/advertising.

The purpose of this analysis is to identify the financial strategy and performance of the Coca-Cola Company, Pepsi, and Monster. Financial ratios are correlations established from a firm’s financial information and used for comparison purposes. Generalized financial ratios include Liquidity Ratios, Profitability Ratios, Debt Ratios, Activity Ratios, and Market Ratios. These ratios are understood by dividing one account balance or financial amount with another. The measurements use are drawn from a company's financial

D) Pepsi had $1,426 which was more than Coca-Cola’s $1,163. Pepsi has more long term assets

All managers need to understand where value comes from in their firm. The purpose of this analysis is to identify the financial strategy and performance of this particular publicly traded company. The process of understanding the risk and profitability of a company by analyzing reported financial info, especially annual and quarterly reports are vital to identifying the company’s overall financial performance. I wanted to analyze Coca Cola because the company has so much history and is one of the most recognizable brands in the world. I have always enjoyed researching food and beverage companies

Comparing financial data from statements can help determine whether or not it is a sound decision to invest in a company. This information can also help determine if a company is operating successfully and areas of risk within the company. This analyzing can help one company compare itself to another company and ensure that they are able to compete with other companies in their respective industries. PepsiCo and Coca-Cola are two major companies that make a majority of their money from producing and selling soft drinks. To compare these companies we are going to use vertical and horizontal analyses to see if these

Partially due to decreasing interest in colas by consumers, PepsiCo faces increased competition in the fight for market share in the cola industry. Pepsi and Coke have gone head to head for years, with Dr Pepper and other smaller brands running a distant third, but with a shrinking consumer base, companies are left to fight over the remaining consumers. PepsiCo has usually played a close second throughout the years, but continuing to invest in a dwindling industry is no way to achieve sustainable profitability. Increased investment would be a wasted effort mainly because of the brand recognition and loyalty that Coca-Cola enjoys. While Pepsi does have its own brand recognition and loyal customers, it is not to the same degree that it is for Coke. In the fight for the remaining cola consumers, it is not likely that Pepsi will win out after being in second

In regards to Coke, there value cash flow proportion is 18.20 compared to an business average of 13.5. Also when analysing, we took into consideration Cokes earnings per share since there EPS is 6.60 which is lower than there cash flow of 18.20 than you can

The report presented below is the financial analysis of Coca Cola and Pepsi Inc. In the beginning a brief overview of both the companies is given ,followed by a detailed view of each of the company’s financial health , comprising of the horizontal and vertical analysis of the balance sheet and income statement and finally key ratios are calculated to observe the trends and make recommendations. The financial data is taken from MSN Money Central website referenced below.

Horizontal analysis is also known as trend analysis. It is a financial statement analysis method that demonstrates changes in the amounts of equivalent financial statement items over a period of time. Moreover, it is a useful tool in order to assess the trend situations in an effective and a more comprehensive manner. It involves the statements for two or more periods to evaluate trend situations. This analysis may be conducted for income statement, balance sheet, schedules of current & fixed assets, and statement of retained earnings of an organization (Wainwright, 2012).

Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time

A vertical analysis of income is a vertical column of data expressing each expense category as a percentage of sales (Lita Epstein, 2014). An expense percentage is figured by dividing the expense amount by the profit amount and multiplies by one hundred. The total of the expense percentage will be one hundred percent. For example, County Hospital’s vertical analysis shows operating expenses use forty seven percent, taxes paid use sixteen percent; cost of goods sold use twenty four percent, and net income was twenty percent of their income. Vertical analysis only shows percentage and less detail than other methods of financial evaluation.

Sales, profitability, and liquidity are the three financial critical success factors. These three do not require much discussion as they are factors discussed by all when evaluating the current state of any company in any industry. Without sales and profits a company cannot succeed and with a trend showing these two things