Xacc/280 Financial Analysis

Pepsi Co. and Coca Cola, both are very well known multinational companies. They are so famous that they perhaps don’t need any introduction since almost everyone knows basic info about these companies and their widely used products. Both of these companies have been dealing in the production of flavored waters, plain drinking water and soft drinks for decades now and have always been each other’s competitors in almost all the mainstream products they have been producing.

Based upon my knowledge learned on financial reporting, I had compared to companies reporting statistics. The two companies in comparison are PepsiCo Incorperated and The Coca-Cola Company in which both have reported annual statistics for 2004 and 2005. During my comparison of net incomes, gross expenses, stock statistics, and assets accumulations, I have suggested some strategies for each business to take into consideration for better future results. As an accountant in training, I will be giving specific details of my analysis and recommendations, as these are my opinions for financial success.

The 2 firms had a similar profit margin, major difference exists in COGS and SG&A, while Sears had a higher gross profit margin, high expense (21.17%) is driving the total cost and expense of the two firms to the same level-about 95%.

After identifying and developing a comprehensive panorama on the activity of both companies, their respective targeted customers and the industry in which they operate, the next step involves examining and analyzing the financial records of both companies. To be able to generate accurate interpretations based on the financial parameters and standing of both companies, I utilized the annual financial reports for fiscal years 2012, 2013 and 2014 to help me develop a better understanding and thorough perspective. Based on the presented information in the entirety of the report, also accounting for balance sheet, income statement, cash flow statement, stockholder’s equity statement and related

Coca Cola one of the major producers, supplier, and vendor of the soft drink industry sells a variety of up to 35,000 different products ranging from their regular soft drinks, to clothing, and collectable toys. Coca Cola sells four of the five top selling soft drink beverages, which are Diet Coke, Sprite, Fanta, and of course, Coca Cola. The Coca Cola company also sell water, juices, and sport drinks.

Although the sales for both entities experienced an increase, Profit Margins are all decreased over the two years.The ratios for Oroton in both years is 20.5 cents and 22.2 cents respectively.The slightly drop is owing to the increasing cost of sales and operating expense. However, Oroton performed well under the difficult trading condition .Compared with Oroton,Country Road has a quite large sales reached up to 419812 million dollars due to the company strategy which was developing the new market and closed unprofitable stores but the profit is disproportionate smaller(21058M) and result in the profit margin are ony 5 cents and 5.7 cents over the two years.This

Google and Yahoo are two companies that compete in the Internet Information Provider Industry. They are perhaps two of the best known companies in that area. Because they both belong to the same industry, they are very similar in some aspects, but they also differ in some others. More specifically, they differ somewhat in their financial aspects. In order to provide a better understanding of their financial characteristics, different types of financial statement analyses are used. A horizontal analysis is used to evaluate a company's progress from period to period, a vertical analysis is used to judge against competitors, and financial ratios are used to assess a company's financial status and judge them against their main competitors as well as the average for their industry. Without doubt, these are very helpful tools that can be used by managers, auditors, investors and creditors who have an interest in evaluating the financial aspects of a company (Nobles, Mattison, and Matsumura 1010).

3.A Company that competes with Coca-Cola and sell similar products would be the known Pepsi Co. However, Coca-Cola is primary recognized globally and has always exceed according to a 2014 Nasdaq article, “Coke holds 42% of carbonated drinks while Pepsi Co. holds 30 (2014).”

This case set contains information for two separate companies in eight different industries. Our task is to differentiate the companies based on what we know about them from a qualitative stand point and the financial data that we are provided.

Also, the gross profit had a lower increase(+9.67%), that means the cost of sales increased more than the revenue increase in term of percentage. There was a 13.16% rose in net operating expense as both selling and distribution costs and administrative expenses increased. One of the reasons why net operating expense increased because the firm had a programme of reinvesting for organic growth which supply chain, IT and store portfolio had improved. The rose of the net operating expense lead to a 2.13% drop in the operating

These analysis' that we are going to conduct will provide us with a myriad of information about the two companies and how they compare to each other.

Nestle: Nestle is also one of the company that competes with Coca-Cola. Nestle is considered the world’s number one drinks and food organisation in terms of sales. (https://www.nestleprofessional.us/ ).

“Coca-Cola brands are available to consumers throughout the world. Today they account for 1.7 billion servings of all beverages consumed worldwide daily. Coca-Cola has the edge in the market and because they are first to capitalize on new consumer trends. They continue to focus on continuous operating improvements, and they are ever changing to meet market demands. Pepsi Co satisfies the needs of its customers with the wide variety of products offered. They also have the different type of beverage or snack and its brands can substitute for each other. Coco-Cola and Pepsi Co is known as the top 100 most valuable brands in the world.

Answer: Both Companies are acting on a high-tech market. The development and progress in this market is really fast.

Coca-Cola is the cool fizzy drink on a hot day many people long for. It is one of the top products of this ever changing world. I chose Coca-Cola because it is a gigantic, world renowned product. Coca-Cola also has another major competitor, Pepsi. I thought it would be very interesting to see how Coca-Cola tries to complete with Pepsi.