Xacc280 Week 9 Final

2665 WordsAug 14, 201011 Pages
In order for a company to be financially healthy, it is of most importance that the company must analyze, interpret, and review the business’s annual financial reports. The financial analyses of the annual reports provide insights and information regarding the performances of the business. In this paper, I will be disclosing financial evaluations and comparisons between Coca-Coca and PepsiCo Incorporation. The visualizations used in this paper were designed to provide the analyses performed utilizing three financial analyses methods: vertical analysis, horizontal analysis, and ratios analysis. There will also be recommendations made on how Coke and Pepsi could improve their financial status. Vertical Analysis-Pepsi and Coke The…show more content…
The horizontal analysis compares most current ratio to the past performances (ratios) and future ratios (estimated). A horizontal analysis can also aid in determining if the financial health of the company is strong or weak. Illustration 2 shows two years horizontal analyses for Coca-Cola and PepsiCo, Inc. in the area of company performances. Illustration 2-Horizontal Analyses of Coca-Cola and PepsiCo. For 2004 and 2005 Coca-Cola Net Sales (in millions) 2005 2004 2003 23,104 21,742 21,044 109.79% 103.32% 100.00% PepsiCo Net Sales (in millions) 2005 2004 2003 32,562 29,261 26,971 120.73% 108.49% 100.00% Coca-Cola Consolidated Balance Sheets (Increase or (Decrease) in 2005) 2005 2004 Amount Percent Current Assets 10,250 12,281 (2,031) -16.54% Inventory 1,424 1,420 4 0.28% Accounts Receivable 2,281 2,244 37 1.65% Non-current Assets 15,517 15,496 21 0.14% Total Assets 29,427 31,441 (2,014) -6.41% Current Liabilities 9,836 11,133 (1,297) -11.65% Non-current Liabilities 3,236 4,373 (1,137) -26.00% Total Liabilities 13,072 15,506 (2,434) -15.70% Total Stockholders ' Equity 16,355 15,935 420 2.64% Total Liabilities & Stockholders ' Equity 29,427 31,441 (2,014) -6.41% PepsiCo Consolidated Balance Sheets (Increase or (Decrease) in 2005) 2005 2004 Amount Percent Current Assets 10,454 8,639 1,815

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