Pepsi Co. and Coca Cola Co Financia Analysis

Topics: Balance sheet, Generally Accepted Accounting Principles, Coca-Cola Pages: 4 (750 words) Published: August 31, 2012
Pepsi Cola and Coca-Cola; their names are synonymous in the soft drink industry. While both companies appear to offer the same type of product; their histories, business strategies, and culture are equally as unique and diversified as the lines of products they offer. Since Coca-Cola’s founding in the late 1886, and Pepsi’s founding in 1965, both Coca Cola and Pepsi have come a long way from their humble beginnings, and today employ over 100,000 employees worldwide and serve more than 1.4 billion beverages daily around the globe, and produce, market, and sell over 200 different products. In this paper we will look at the financial activities of Pepsi and Coca-Cola for 2004 and 2005. Specifically, the financial data that this report will focus on will be the; cash generated, investments, assets and liabilities and of course both companies debt to income ratios. The financial statements that will be utilized in assessing this information will be each company’s Consolidated Balance Sheets and consolidated statement of incomes. However, these financial statements are the beginning point for the financial analysis. In addition, the report will also include ratio analysis for both companies that will enable us to evaluate the success, failures, and progress of each company. The report will also include recommendations on how each company could improve on deficiencies or build on strengths.

2005 saw an increase of 11% in Net Revenue for Pepsi. This can be partially contributed to the decrease in overall liabilities between 2004 and 2005. 20052004
$ 32562 $29261
$32562 / $29261= 1.1128122 or 11%

Current Assets in 2005 added up to $10,454 while current liabilities amounted to $9406. This represented a 1.11:1 debt to income ratio, or rather, for every dollar in liabilities; Pepsi Company had $1.11 in assets. $10,454 / $9,406 = 1.1114182 or 1.11:1

*Wrong dude. They had more money in 04 to...
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