Final Project - Financial Analysis

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Final Project: Financial Analysis

Final Project: Financial Analysis
Two of the major competing companies that manufacture drinks are Coca-Cola, and Pepsi. They both produce regular water, flavored water, and soft drinks of many kinds. While this essay will explain what vertical and horizontal analysis is, it will also explain each company’s vertical and horizontal analyses. Also the ratios for each company will be given, and several examples as to how each company can improve in their financial status. The financial analysis of both companies is very important so both businesses can understand how they are being managed.

It is very important for a company to keep up to date financial documents, audits, taxes, and other financial statements. This is the information needed to show what a company is doing with their finances and what they have done in the past. This information is also very useful for management to use and know what to do differently in future months or years. Information like this allows a company to grow, and have healthy production going forward. Having this data also helps management, investors, and creditors know if there are any issues that have come up in the past that need to be worked on.

While in competition, these two companies have continued to grow in size, market value, and profit sales. Since the beginning of their competition, both companies have ventured into new areas of sales, (such as snack foods, iced tea, and bottled water) and they continue to think of new ways to grow their business yearly. In order for both companies to continue to grow in the ways they foresee, they must have investors to invest money in the company. These current and potential investors will first look at both company’s financial statements and data, find as much information as possible needed to make a decision, then make a judgment call as to which company is the best investment at the time.

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