Xacc280 Final Project
XACC280 Final Project Professor Jana Howie A Paper
Dale Miller
XACC 280 Final Assignment: Financial Analysis of PepsiCo and Coca Cola Company
Professor Jana Howie
29 June 2013
The financial analyses of both PepsiCo and the Coca Cola Company are made from the figures provided in both Appendices A and B. This paper will explain the current financial conditions of both the Coca Cola Company and PepsiCo, and it will offer suggestions for the improvement in the financial states of both organizations. The Coca Cola Company and PepsiCo are the two biggest beverage companies on the globe. Comparing and contrasting both the financial situations and the operational modalities of these two corporations will make for an interesting and enlightening exercise. In this paper I will show how the Coca Cola Company and PepsiCo are different, and also the ways in which they are alike, especially their similarities with respect to marketing their products to very similar target markets. The Coca Cola Company is the older of the two organizations, and is the leader in the beverage market, while PepsiCo is striving to grow and take some of Coca Cola’s market share. For comparison of financial condition I have chosen the standard vertical analysis, also known as common size analysis. The financial analysis includes equations that involve the assets account and its corresponding base account, whose base account is total assets, liabilities, and shareholder equity whose base is stockholder equity and total liabilities. The income statement’s base contained the accounts for net revenue and sales. I will also perform a horizontal analysis in order to show changes in financial figures that both companies have experienced in the years listed. Both PepsiCo and the Coca Cola Company have shown improvement in their financial situations in recent years, as evidenced by the results of the horizontal and vertical analyses.
Between the years 2004 and 2005 PepsiCo’s balance sheet
Dale Miller
XACC 280 Final Assignment: Financial Analysis of PepsiCo and Coca Cola Company
Professor Jana Howie
29 June 2013
The financial analyses of both PepsiCo and the Coca Cola Company are made from the figures provided in both Appendices A and B. This paper will explain the current financial conditions of both the Coca Cola Company and PepsiCo, and it will offer suggestions for the improvement in the financial states of both organizations. The Coca Cola Company and PepsiCo are the two biggest beverage companies on the globe. Comparing and contrasting both the financial situations and the operational modalities of these two corporations will make for an interesting and enlightening exercise. In this paper I will show how the Coca Cola Company and PepsiCo are different, and also the ways in which they are alike, especially their similarities with respect to marketing their products to very similar target markets. The Coca Cola Company is the older of the two organizations, and is the leader in the beverage market, while PepsiCo is striving to grow and take some of Coca Cola’s market share. For comparison of financial condition I have chosen the standard vertical analysis, also known as common size analysis. The financial analysis includes equations that involve the assets account and its corresponding base account, whose base account is total assets, liabilities, and shareholder equity whose base is stockholder equity and total liabilities. The income statement’s base contained the accounts for net revenue and sales. I will also perform a horizontal analysis in order to show changes in financial figures that both companies have experienced in the years listed. Both PepsiCo and the Coca Cola Company have shown improvement in their financial situations in recent years, as evidenced by the results of the horizontal and vertical analyses.
Between the years 2004 and 2005 PepsiCo’s balance sheet
References: WWW.PEPSICO.COM Retrieved 29 June 2013 WWW.FUNDINGUNIVERSE.COM Retrieved 29 June 2013 WWW.COCA-COLA.COM Retrieved 29 June 2013 Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial accounting (6th ed.). Hoboken, NJ: Wiley.