Thursday, January 9, 2020

Financial Ratio Analysis Coca Cola Company - 1608 Words

Financial ratio, also known as accounting ratio, entails a relative magnitude of any two values, in this case â€Å"numerical† obtained from a firm’s financial statement. They are basis of valuing a company hence it’s a complex task that requires a critical analysis of various components of financial ratio such as profitability ratio, debt ratio, investment valuation ratio, operating performance ratio, cash flow indicator ratio and liquidity measurement ratio. Therefore, the following financial ratio analysis shall value Coca-Cola consolidated company and PepsiCo Inc. (PEP) through a critical comparison based on their asset utilization, profitability, debt management, market ratio and liquidity. Status of the companies (trend and financial ratio) Coca-Cola Company is the largest beverage company in the world where in 2009, Fortune 2009 survey announced the company as number one brand in the world. (Yahoo Finance, 2015)The company has it’s headquarter in Atlanta, Georgia with satellites operation over 250 countries globally. Hence, the following is a trend and financial ratio analysis of Coca-Cola Company. Asset Utilization and Liquidity Current ratio Current ratio =(current assets)/(current liabilites) The following table reflects the trend of Coca Cola Company for the past four years (Morningstar., 2015). Current Ratio Year 2012 2011 2010 2009 Current ratio 0.71 0.66 0.67 0.65 The current ratio of coca cola has been increasing since 2009 reflecting that the company hasShow MoreRelatedXacc 280 Final1214 Words   |  5 PagesFinancial Analysis Coca-Cola and PepsiCo XACC/280 Financial Analysis An official financial analysis for a specific company needs two years of financial data from the company and from a competitor in the same industry. This financial analysis is between PepsiCo, Inc. and Coca-Cola. Pepsi and Coca-Cola dominate the beverage market worldwide. In addition to sodas, they also distribute a variety of water and energy drinks. BasedRead MoreA Diagram Of The Historical Returns On Equity And Assets1159 Words   |  5 Pagesand assets for both Coca-Cola and PepsiCo ranging from 1981 to 2000. One of the important findings in this diagram is that PepsiCo had almost doubled their return on equity from 1996 to 2000. PepsiCo was able to rise from 17% all the way to 30% by 2000. Interestingly Coca-Cola during that same time had their return on equity drop from about 57% to 24%. When looking at both companies during this time period investors must be careful and notice what competition can do to a company that owns most of theRead MoreFinancial Analysis of Pe psi Co and The Coca Cola Company Essay850 Words   |  4 Pagesinvestment into any company, you would need to first take the time to review and study the financial records of the company. 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Pepsico1144 Words   |  5 PagesCoca-Cola vs. PepsiCo Coca-Cola is a leading beverage industry in the United States and many other countries in the world. PepsiCo is also a leading worldwide beverage company, but they are also the parent company of the Frito-Lay and Quaker Oats Companies. This makes PepsiCo a leader in the beverage, snack and cereal industries. As consumers, we have indulged in their products for many years. My personal preference has always been Pepsi over Coke, which is why I was very interested in conducting

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