Xacc280 Financial Analysis

Topics: Coca-Cola, Balance sheet, Asset Pages: 5 (1972 words) Published: April 7, 2013
Financial Analysis|
[Type the document subtitle]|
XACC 280 |


This paper will show you the comparison of two major companies in the beverage field. These companies are Coca-Cola and Pepsi. Both of these companies offer water, flavored water, and soft drinks. When these companies began they were primarily producing soft drinks. This paper will show you what the vertical and horizontal analysis is. You will also be able to understand each vertical and horizontal analysis for both companies. I will provide the ratios for both Coca Cola and Pepsi. The analysis is very important so both companies can understand how they are being managed. When you have a business or consider starting of investing, it is important that you keep your financial documents, audits, taxes, and any other financial statements accurate. All this information is needed so that you are able to see what the companies are doing with their revenue. The financial documents will also so what the company has done in the past as well. The financial information is always helpful when you are trying to gain or prepare future revenue. This will help any company to grow, whether it is in the beverage distribution or any other type of production. When you are considering having investors, creditors or general management, this information will be very useful to see if there are any types of issues that need to be cleared up or better planned for the future. Because these two companies show that they are in competition they still need to show growth with their market value and also their profit sales. In the beginning you can see that they both open the door of new sales in all different areas of distribution. These areas iced tea, bottled water and some snack foods. As the years go on you will find new ideas and items come forth? In order for both companies to continue to grow in the ways they have put in place on their yearly business plans they should always have some investors that will invest money in the company. The investors will always look at the company’s financial statements and data. When they review the given information it is helpful to have as much information as needed for the investors to make a decision. After that that point they will make the final call on whether or not they wish to make and investment in which company. When you are presenting information to investors you are trying to get the top offering and be like the number one pick. Being the number one pick in the beverage industry with both companies they want to show growth and to prosper by creating new beverages for years to come. Both companies have made it to the global industries. They have modeled practices that one another have followed in order that they could overcome any obstacles to worldwide manufacture and distributions. (The Coca Cola Company, 2009). Even though these two companies have similar products they are still different because of the different type of distribution methods that they use. One item that both companies do use is what is called the follow up strategy. This is when a company goes to launch a new product and then the other company would come out with a product that is similar. This would show some growth and falls in a product. This is an ongoing competition with both companies. The three tools that all companies that are used for financial statement analysis: Vertical, Horizontal, and Ratio Analysis. These all have different functions. Each helps to analyze financial information and the information data that is on a financial statement. The Vertical Analysis is used to express data in a statement as a percent from the base amount. The base figure given represents the total assets of each company. You should always have the main starting point for the financial analysis is the total assets amount for each company. This will become helpful when a company wants to be able to see what percent of assets cash and...
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