Thursday, September 19, 2019
Financial Analysis: PepsiCo Beats Coca-Cola Essay -- Pepsi, Coke, busi
Pepsi vs. Coke the epic battle that every American and from the looks of their financial statements possibly everyone in the world must deal with does it have a winner. For the fiscal year 2005 it certainly does through analyzing financial statements with vertical, horizontal, and ratio analysis investors are able to clearly decide who the better choice for their investment is. By careful scruitiny and attention to detail any investor can safely put their money in a buiseness as an investment so long as they are adhering to rules and regulations of the GAAP. Using the tools for financial analysis and the information given I will determine the winner of that battle for 2005 at least from the investors point of view. In our literature it states that a Ã¢â¬Å"vertical analysis evaluates financial statement data by expressing each item in a financial statement as a percent of a base amount.Ã¢â¬ I chose to look vertically at current assets and liabilities, of both companies so I can compare these figures between Coca-Cola and PepsiCo to find out who is in better current standing. Current assets Vs. Total Assets for PepsiCo: ( 2005) 10454/ 31727 = approx. 33% of total assets are current (2004) 8639/ 27987 = approx. 31% of total assets are current Now we will look at the current liabilities vs. total liabilities for PepsiCo (2005) 9406/ 17476 = approx. 54% of the total liabilities are current (2004) 6752/ 14464 = approx. 47% of the total liabilities are current Current assets Vs. Total Assets for Coca-Cola: 2005) 10250/ 29427 =Approx. 35% Current 2004) 12281/ 31441 = Approx 39% Current And we will look at the current liabilities vs. total liabilities for Coca-Cola: 2005) 9836/ 29427 = Approx. 33% Current 2004... ...id volume growth for 2005Ã¢â¬ ¦The company said it earned $864 million, or 36 cents a share, in the fourth quarter, a 28 percent drop from the year before. However, excluding one-time charges, the company earned 46 cents per share, a penny ahead of analysts' expectations. One-time items included taxes on repatriated foreign earnings and a charge related to a bottling investment.(Wilbert, 06)Ã¢â¬ It is a sad day when you have a 28% drop year over year and exceed Ã¢â¬Å"Wall Street expectations.Ã¢â¬ If I were in their shoes I would do whatever I had to do to entice consumers to put their hard earned cash back in my company even at the cost lower profitability sell for less but sell moreÃ¢â¬ ¦hey it works for Wal-Mart why not you to Coca-Cola. Until they change their investment and marketing strategies I would steer clear of investing in any new Coca-Cola stock for more than a few years.
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