Xacc280 Financial Analysis

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.

     PepsiCo. Incorporated and The Coca-Cola Company are the two largest and oldest archrivals in the carbonated soft drink (CSD) industry. Coca-Cola was invented and first marketed in 1886, followed by Pepsi Cola in 1898. Coca-Cola was named after the coca leaves and kola nuts John Pemberton used to make it, and Pepsi Cola after the beneficial effects its creator, Caleb Bradham, claimed it had on dyspepsia. The rivalry between the soda giants, also known as the "Cola Wars", began in the 1960’s when Coca-Cola's dominance was being increasingly challenged by Pepsi Cola. The competitive environment between the rivals was intense and well-publicized, forcing both companies to continuously establish and

The existing concentrate business is largely controlled by Coca-Cola Company (Coca-Cola) and PepsiCo (Pepsi), together claiming a combined 72% of the U.S. carbonated soft drink (CSD) market sales volume in 2009. Refer to Exhibit 1 for an illustration of the CSD industry value chain. For more than a century, Coca-Cola and Pepsi have maintained growth and large market shares through mastering five competitive forces, shown in Exhibit 2, that drive profitability and shape the industry structure.

A horizontal analysis can be defined as “the study of percentage changes in comparative statements” (Charles T. Horngren, 2008, p. 746). It is useful in determining a company’s financial stability. This section will analyze Competition Bikes Incorporated’s (CBI) percentage changes from years 6 to 7 and then 7 to 8. The report will include an analysis of CBI’s comparative income statement and balance sheet.

However, no matter what the advertisements claim, the statistics concerning the shares and value of each company cannot lie. The Coca-Cola Company dominates the soft-drink market by owning four of the global top five soft-drink brands, which include Coca-Cola, Diet Coke, Fanta, and Sprite. The Coca-Cola Company makes or licenses more than 400 drink products in more than 200 nations. In 2006, Coca Cola’s sales reached 24,088 million dollars and had a net income of about 5,080 million dollars, with 71,000 employees working in the company. PepsiCo, Incorporated is the largest snack maker and second largest soft-drink maker in the world. It sells beverages and snacks in approximately 200 nations as well. In 2006, its sales reached 35,137 million dollars and had a net income of $5,642 dollars with 168,000 employees working in the company. With these numbers, one can assume that Pepsi is earning more profit if wages payouts are not considered, but Pepsi has a large number of workers working for

Coca-Cola Company history originated in 1886 when the “curiosity of an Atlanta pharmacist, Dr. John S. Pemberton, led him to create a distinctive tasting soft drink that could be sold at soda fountains” (Coca Cola History, 2013, para. 1). He generated flavored syrup, took it to his

In this writing, we will discuss about WACC, EVA, their uses in evaluate a firm 's performance… and apply into a particular case of comparing performance of Coca Cola and Pepsi based on the past and forecasted data.

The company known as Coca-Cola today was started in September of 1919, but the first Coke brand was served as early as 1886. Since that time it has grown to be one of the most globally recognized brand names with a stock value of $167 billion. Coke’s plan has always been developed with the future in mind. Right away the company realized that it was more profitable to manufacture the concentrate used to make carbonated drinks than to bottle it. From that point on they saw the entire world, not simply the originating country, as their desired market. It seems only practical that the company should pursue this agenda until conquered then focus the effort on expanding into different product lines. This logical

In comparing the companies to each other it is important to take into account the liquidity or ability of a firm to meet its current obligations, and solvency

The history of Coca Cola began in 1886 when Dr. John S Pemberton, an Atlanta pharmacist created a tasty soft drink which could sell at soda fountains. Since then, Coca Cola grew to be a global brand and touched great heights. Today, it sells across 200 countries and is just as popular across all the markets and nations. The company today, owns or licenses and markets more than 500 non alcoholic beverage brands. The brand has only few major competitors in the global market. The daily servings of coca cola are estimated to be at 1.9 billion globally. (Coca-Colahellenic, n.d.) This is just another proof of the popularity of the brand which has a very large and diversified

These two-company’s economic characteristic include their market size and growth rate from the early 2000’s to 2010. Coke and Pepsi have struggled for years in the carbonated and non-alcoholic sector. According to Barbara Murray (2006c) "But as the pop fight has topped out, the industry 's giants have begun relying on new product flavors and looking to noncarbonated beverages for growth.” (Murry, 2006). For instance, Coke boasts in the advertisement as the king of the soft drink; as a consumer of both products, I agree. About 15 years ago, I was selected to participate in a critiquing of Coke and Pepsi products. Additionally, my travel to Africa in 2007 and 2010 provided the same raving review for the Coke Cola products. Apparently, Coke and Pepsi have been rivals for ages locally, regionally, nationally, multinational, and globally, therefore, one expects them to have an on-going rivalry when marketing the high-energy beverages.

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.

“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.

“Coca-Cola was founded in 1886 at a soda fountain in downtown Atlanta, Georgia” (Coca-Cola Facts para 1). Coca-Cola is better than Pepsi due to its’ longer experience “being in business for about 125 years, the big name beverage brand inspired many consumers and viewers; sparking social interaction and encouraging innovation” (Coca-Cola Facts para 1). “Coca-Cola had bottlers to create a distinctive bottle for the beverage, and it was so noticeable that it could be recognized in the dark, and this effectively set the beverage brand apart from competition, and because of the Coca-Cola’s bottle features — it was acknowledged by many artists from all around the

While Pepsi’s strength might lie in diversification, but Coca Cola found its success in marketing. Coca Cola is still, as far as I can tell, the quintessential beverage of America. There’s a reason that the saying, ‘Is Pepsi okay?’ is a sort of tongue in cheek joke. People generally prefer Coke product to Pepsi. I, personally, am I die hard Diet Coke fan, and will swear up and down that I can taste a difference. My brand loyalty is very strong; if a place doesn’t have Diet Coke, I just drink water. Coca Cola very early on cemented itself in the forefront of Americana and has blossomed because of that positioning; it also had the first mover advantage internationally when Coca Cola decided to expand outside the borders of the United States. When Pepsi tried to move in to the international arena in the early 1940s, Coca Cola had already been in the markets for ten years and had built up an enormous brand awareness. Despite the built in advantage, Coca Cola has hit some speed bumps over the years that should leave the shareholders a little concerned.