Xacc280 Week 9 Financial Analysis

1923 Words Aug 5th, 2013 8 Pages
Financial Analysis

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XACC 280

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Introduction:

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.

There are great many players in the same industry; some of them are locally based and the other ones operate internationally,
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When we see the total revenues of Coca Cola, they were $21742 and $23104 in the years 2004 and 2005 respectively. Revenues in both the years for Coca Cola were lesser than those of Pepsi Co. The net sales of the Coca Cola in the year 2005 were 6.25% more than in the year 2004. This also means that the net revenues in 2005 were 106.25% of the net revenues in 2004.

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.

The administration and selling expenses of PepsiCo were $14176 and $ 12674 in the years 2005 and 2004 respectively, while the operating expenses in 2005 stood at 111.85% of those in the year 2004. Similarly, the total operating expenses of Coca Cola surged by 10.75% in year 2005 as compared

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