...Comparative Analysis Case The Coca-Cola Company and PepsiCo, Inc. Both Coca-Cola Company and PepsiCo, Inc. used a comparative report format, that list the sections one above the other, on the same page, to present their balance sheets. For a measure of both a company’s efficiency and its short-term financial health, the working capital is calculated as: Working Capital = Current Assets – Current Liabilities. At the end of 2007, the Coca-Cola Company has a negative working capital of $1,120 million from the current assets of $12,105million and the current liabilities of $13,225 million. The Coca-Cola Company’s negative working capital might be impacted by the effects of transactions occurred in 2007. Trade accounts receivable, inventories, prepaid expenses and other assets were increased to $730 million, $579 million and $637 million respectively. It was primarily due to 2007 acquisitions, including glaceau, 18 German bottling and distribution operations. Because of these acquisitions, accounts payable and accrued expenses were increased to $1,860 million. Additionally its loans and notes payable of $2,684 million were increased primarily due to net borrowings of commercial paper and short-term debt during 2007 to fund acquisitions. It seemed not that the Coca-Cola Company was unable to meet its short-term liabilities with its current assets but it seemed that the increases of current liabilities were much higher than that of current assets. On the other hand, PepsiCo...
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...Financial Statements Analysis Dr. Rimona Palas Caroline LAYANI Id: 94746 Michael WEIMBERG Id: 94852 Nathan BENAMOU Id: 94531 Sebastian KANOVICH Id:799048 I. Executive summary After analyzing the income statement, ratios and strategies of the Coca-Cola Company, we can conclude that Coca-Cola had a continuous revenue growth between the years 2009 and 2011. It is the largest soft drink industry company in the world and therefore stands in a privileged position to face potential crisis. The reason for having our results in the income statement, and thus also in our ratios can be explained by the company’s acquisition and consolidation of CCE’s North American business during the last quarter of 2010. Moreover, another important factor for the decline in equity interest was the sale of the company’s investment in Embonor during the first quarter of 2011. Coca-Cola has been using several strategies. As mentioned above, acquisitions have been an important factor of Coca-Cola over the last 50 years. By acquiring new companies, they were able to eliminate competition, increase their growth and become the market leader of the non-alcoholic beverage industry. Following our calculations, over the past three years, Coca-Cola had an increase in its current liabilities as well as in their “cash to sales”. The debt-to-equity ratio shows that it’s smaller than one, meaning that the company is financed through equity. This low debt-to-equity ratio will usually be preferable...
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...The Coca-Cola Company FINANCE Spring 2013 [FNCE 601] February 1st, 2013 | WEMBA38 | Team 17 Mathieu Verbeeck Why has coca cola been so successful in the past? When Douglas Ivester took over the reigns at Coca-Cola in October 1997, he had big shoes to fill – indeed, Goizueta – who passed away earlier in the year – would be remembered as one of the greatest wealth builders of the 20th century: during his tenure as CEO, Coca-Cola’s market value grew from $4.3 billion to $165 billion and an investment of in the Coca-Cola stock would have earned a compounded annual rate return of 33% over the last 10 years. Goizueta’s and Coca-Cola’s success can be attributed to a number of factors. Business Strategy Coca-Cola’s mission is to maximize shareholder value over time. To achieve this mission, The Coca-Cola Company executes a business strategy driven by four key objectives: increase volume, expand Coca-Cola’s share of worldwide nonalcoholic ready-to-drink beverage sales, maximize its long-term cash flows and create economic value added by improving economic profit. Coca-Cola achieves these goals by strategically investing in the high-return beverage business and by optimizing their cost of capital through appropriate financial policies. Marketing To meet its long-term growth objectives, Coca-Cola continues to make significant investments in marketing to support their brands. Marketing investments enhance consumer awareness and increase consumer preference for their...
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...hence seek out those investments which meet these criteria. My personal investment strategy is based on the analysis of the company’s fundamentals and the macroeconomic environment in which it operates. As such, I invest in historically steady companies in less volatile industries. This strategy may be considered as fundamental investing. For this reason, I desire to invest in a company that has a proven track record of strong financial performance and operates in an industry that is not overly disruptive. For this project, I will elaborate this investment strategy with reference to the Coca-Cola Company, which is one of the companies I am interested in investing in. Coca-Cola (KO) is a well-known brand in the world, consistently ranked as the most valuable brand in the world by Forbes Magazine. Statement of Strategy and Investor Style In my investment strategy, the most important factors I consider are the company’s earnings performance, dividend payout, value of stock and the company’s market leadership in the industry it operates. Earnings Performance I also analyze the company’s earnings per share (EPS) to measure the profitability per unit of equity. High EPS means the company is profitable and in most cases the stocks are highly valued. It is calculated as below: EPS= Net income of a period/number of outstanding shares According to Yahoo Finance 2016, ("Coca-Cola Co (KO) Earnings per Share", 2016), the company’s EPS in the year ended march 2016 were at $1.66 a share....
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...investments for my client that align with its investment goals would be The Coca Cola Company. The Coca Cola Company has been around for years and everyone enjoys a Coke or a Coke product. 1. Provide a rationale for the U.S. publicity traded company that you selected, indicating the significant factors driving your decision as a financial manager. The significant factors that drove the decision, as a financial manager to look into The Coca Cola Company for my client is that Coca Cola is going to always be around and everyone enjoys a nice cold Coke or Coke product. The Coca Cola Company sells many products world wide. Investing in The Coca Cola Company will offer my client a very high return equity (ROE). “Coca Cola gives investors a very high return on equity (ROE), meaning that for the money you invest your return is typically higher than the industry average. In the case of Coke, it over 19% higher than other beverage or similar companies return. The company has also increased their stock dividend every year for almost 50 years straight.” (http://www.rsstocktips.com/the-coca-cola-company-ko-nyse.php) This study has should that investing is risky, however, The Coca Cola Company has been a solid company to invest in throughout the years. “For example, the company sells more than 500 brands in more than 200 countries and 23 million retail locations.” (http://investorplace.com/2014/02/ko-stock-coca-cola-pros-cons/#.VADekha4lFI) “These products include sparkling and still beverages...
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...Investment Analysis for Pepsi versus Coca Cola ACC557 – Financial Accounting December 13, 2012 Company Synopsis Pepsi Cola | Coca-Cola | The Pepsi Bottling Group, Inc. (PBG) is the world's largest manufacturer, seller, and distributor of Pepsi-Cola beverages. Separated from parent PepsiCo, Inc. in 1999, it accounted that year for 55 percent of Pepsi-Cola beverages sold in the United States and 32 percent worldwide. The company delivers its products directly to stores without using wholesalers or other middlemen. In addition to its extensive production and distribution facilities, PBG leases and operates about 20,000 vehicles and owns more than 1.1 million soft drink dispensing and vending machines. PepsiCo holds a controlling interest in the firm. | The Coca Cola history extends back to 1885, when John Pemberton invented the original recipe for a new cocawine. Pemberton developed Coca-Cola, a non-alcoholic version of his original cocawine, when Fulton County passed prohibition legislation. Carbonated water was added later by accident when Pemberton was mixing drinks for a friend and incidentally included it. His friends loved the new taste, so he altered the original formula to incorporate it. | Pepsi - International Directory of Company Histories, Vol. 40. St. James Press, 2001. (http://www.fundinguniverse.com/company-histories/the-pepsi-bottling-group-inc-history/). Major Suppliers Pepsi Cola | Coca-Cola | PolandEgyptUnited Arab EmiratesCanada | Poland...
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...Introduction The Coca-Cola Company is a leading manufacturer, distributor and marketer of soft drink concentrates and syrups, juice and juice-drink products. The company is a profitable company that trades on the New York Stock Exchange. The original product was formulated in 1886 by john Pemberton, a pharmacist in Atlanta Georgia, who sold it at a local drug store soda fountain as a "treatment for the mental and physical disorders. A few years later, Asa Candler acquired the formula, established a sales force and began advertising the brand of Coca-Cola. The Coca-Cola became incorporated in 1919 and is now the largest manufacturer, distributor and marketer of non- alcoholic beverages in the world. Nature of the Business Today Coca-Cola markets and connects with consumers using a portfolio of nearly 400 brands in over 200 different countries. Coca-Cola has five strategic business units: North America, Africa, Asia, Latin America, and Europe, Eurasia and the Middle East. The company adopted their strategies of success using the following strategic priorities: A. Accelerated carbonated soft-drink growth, led by Coca Cola B. selectively broaden the family of beverage brands to drive profitable growths C. grow system profitability and capability together with our bottling partners. D. Direct investments to highest potential areas across markets. E. Drive efficiency and cost effectiveness everywhere. In 2003 Coca-Cola Company products comprised of about 10% of total worldwide...
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...Talya Meyhanecioglu Company Analysis The Coca Cola Co, The Coca-Cola Company (known as KO in the stock exchange, common stock) is a non-alcoholic beverage company that serves more than 500 non alcoholic brands in cosumer goods industry. Coca-Cola Company has operations in more than 200 countries and employs more than 150,000 people. It owns and markets sparkling beverage brands, including Diet Coke, Fanta and Sprite. In addition, Coca-Cola manufactures, markets and sells beverage concentrates.It has operations over 125 years. Their major competitor in the beverage industry is Pepsi Co. Inc. (PEP in stock exchange) which is a firm that is also producing variety of cokes and other non-alcoholic drinks while operating in more than 150 countries in the world since 1898. Coca Cola Co. has more than half of the market share for the soft drinks industry. The Coca-Cola Company has committed to rely on principles of corporate governance. Shareholders elect The Board to oversee their interest on the long-term wealth ,strength and success of the business .The Board is the ultimate decision making body. The Board selects the members of the senior management which are charged for conducting the business of the company. The purpose of the Committee on Directors and Corporate Governance established by the Board is , to identify individuals which are qualified to be Board members and recommend to the Board director for the next annual meeting of shareholders , as well as recommend the Board...
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... Daniel Frost The Business Enterprise – BUS508 Strayer University June 12, 2011 Based on your analysis, determine which company is better able to pay current liabilities (debt). Explain your rationale. Based on the analysis of Pepsi Co and Coca Cola Enterprise the company that would be better able to pay current liabilities would be Pepsi Co. The company had retail sales of $108 billion in the year of 2009. In previous years, Coca-Cola would be better to pay current liabilities however the company suffered huge losses in the year of 2008. Pepsi Co has nineteen mega brands that provide revenues in several different markets. Coca Cola has five brands per geographic area. Coca Cola is a large organization that is present in numerous countries around the world. Pepsi Co seems to be better to pay liabilities based upon the several different brands the company provides. If there was an analysis based upon the year of 2010 Coca Cola Enterprise would be better able to pay current liabilities. The company sold $25.5 billion unit cases in 2010 versus the $24 billion in 2009. Coca Cola also had a 13% increase in gross profit and operating revenue. (Coca-Cola, 2011) Pepsi Co in the year 2010 also experienced steady growth in revenue and 12% growth of earnings per share. Pepsi Co continued to deliver top tier financial returns in the year 2010. Pepsi Co Americas Foods provided the largest operating profit of 53% in the year 2010. (PepsiCo, n.d) Determine what...
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...Introduction The Coca-Cola Company Limited is the world's largest beverage company and is the leading producer and marketer of soft drinks. Due to the facing of highly competition in the market, the Company used more than million dollars in the R& D, marketing and production, in order to design a new product to gain a higher margin. This report is mainly focusing on how Coca-Cola Company Limited uses strategies in order to competitive in the mature market. Firstly, the issues of the Company will be identified, and then SWOT analysis of the company will be conducted. After that, evaluation of alternative strategies will be stated and finally recommendations and implementation will be given. Background Coca-Cola Company Limited is the world largest offerer of non-alcoholic beverages and the most valuable firm in the world. They owned over 300 brands in over 200 countries and serving carbonated soft drink and non-carbonated beverages such as fruit juice, fruit drink, sports drinks, coffees and bottled water. Coca-Cola Co. is operating in their existing brands, and also develops new global and local brands and acquisition of the global or local brands. In 2002, the company has launched new brand product including Diet Lemon Coke, Vanilla Coke and large varieties of fruit taste Fanta including lime, grape, strawberry and passion fruit in Australia. The company has also acquired many new international water brands such as Danone Waters, Sparklettes, Alhambra and Evian brands...
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...Financial PerforamAnce Analysis Contributors: Seydi Abdishev, Slavik YA Alexander Filchev, Christine Soghomonyan Prepared for: BUS321a_S2016 (Intermediate Accounting II) Supervised by: Marenglen Berisha Date: 4/30/2016 Contents Introduction 2 Financial performance of UPS 3 Growth 3 Profitability 3 Efficiency 4 Liquidity 5 Working capital management 5 Solvency 5 Conclusion 6 Financial performance of FedEx 6 Growth 6 Profitability 7 Efficiency 7 Liquidity 8 Working capital management 8 Solvency 8 Conclusion 9 Financial performance of Coca Cola Co 9 Growth 9 Profitability 11 Efficiency 11 Liquidity 12 Working capital management 12 Solvency 13 Conclusion 14 Financial Performance of PepsiCo 15 Growth 15 Profitability 15 Efficiency 15 Liquidity 15 Working Capital Management 16 Solvency 16 Comparison between UPS and FedEx 16 Profitability 16 Efficiency 17 Liquidity 17 Comparison between Coca Cola Co and PepsiCo 18 Profitability 18 Efficiency 19 Liquidity 19 Solvency 20 Comparison between the freight shipping industry and the soft drinks industry 20 Introduction This report discusses the performance and ratio analysis of UPS and FedEx from the air delivery & freight industry and Coca Cola Co and PepsiCo from the beverages - soft drinks industry. Key ratios reported in Appendixes...
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...Case Analysis: PEPSI-COLA UK Peter Kendall, regional vice president for northern Europe of Pepsi-Cola International, had a difficult situation where he was potentially being challenged by Coca-Cola entering the UK with the introduction of their successfully launched product “ diet coke” which was a growing segment in the US and would be in UK as well. Let us consider a SWOT analysis of PEPSI-COLA in UK as of 1982. Strengths: Pepsi-Cola definitely had a head start in the cola market in the U.K. After the worldwide recession, Europe was beginning to recover and UK had led the growth in 1982, with a 6.5% increase from 695 to 740 million cases. The Pepsi challenge, which was widely successful in the US, was also launched in the UK and was resulting in market share increase. Along with the success of the “Pepsi Challenge”, Diet Pepsi gained more market share due to the leverage of the Pepsi name along with their “upbeat” advertising techniques that essentially resonated better with consumers compared to TAB. Weaknesses: Although Pepsi had a head start in the UK, the Coca-Cola brand “Diet Coke” was a huge hit in the United States. It was increasing its hold in the diet beverage segment. Coca-Cola was also known to give huge price discounts to earn exclusive dealerships, which was also a huge threat to Pepsi-Cola. In regards to convenience, Pepsi-Cola had an unfavorable market percentage in vending machines (12% overall) compared to Coca-Cola with shares of 26% and 41%, respectively...
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...Coca-Cola (China), Key Success Factors Analysis [pic][pic][pic] Coca-Cola company from its inception in 1886, has been its delicious carbonated beverage products has swept the world, after enduring 117 years. Coca-Cola entered China in 1927, for some reason after the withdrawal of return to China in 1979, and set up a Coca-Cola (China) Limited. Now Coca-Cola (China) Co., Ltd. has become China's largest beverage joint venture, each of the taxes turned over to the country reached three billion yuan. 20 years, Coca-Cola (China) Co., Ltd. has achieved excellent results, has become a pioneer leader in soft drink sales market is regarded as specimens of the same industry and model. Coca-Cola Company is able to do in China, made such a huge success? Through the Coca-Cola (China) Beverages companies personal work experience, I am deeply aware of: Coca-Cola Company is not only a brand to create a company, but also a base for training and practice, is fast moving consumer goods industry, 'Whampoa Military Academy'. It seeks to create all the conditions for their employees to play the staff expertise to develop the skills of employees, and tap the potential of employees, truly make the best use. Coca-Cola Company is the culture of the achievements of these talented of the brand. Therefore we can say is unique and effective human resources strategy for making Coca-Cola Company to create a spectacular performance, becoming the world's No...
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...The Coca Cola Company: Marketing Strategy Contents Introduction and Summary of the Company ............................................................................................ 3 Environmental Analysis ........................................................................................................................... 3 Political ............................................................................................................................................... 4 Economic............................................................................................................................................. 4 Social................................................................................................................................................... 4 Technological ...................................................................................................................................... 5 Customer analysis – STP analysis ............................................................................................................. 5 Segmentation ...................................................................................................................................... 6 Targeting ............................................................................................................................................. 6 Positioning .............................................................................
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... Coca-Cola Contenu I Overview 3 1- Key facts: 3 2- Business description: 3 3- History: 4 4- Major products and services: 5 II Context and Short Economic Analysis 5 III Financial Structure 6 1- Liquidity-and-solvency perspective 6 2- Capital Employed Perspective 9 3- Working Capital Ratio 10 4 Shareholders 11 IV Trend Alalysis 12 1- Coca Cola Company profitability 12 2- Sales and value added 13 3- Management effectiveness 14 V Comparative Analysis 15 VI Financial Cash Flow 18 VII Risk Assessment 21 VIII Recommendation 23 I Overview 1- Key facts: The world around us is changing so fast. Today we must see what kind of things can happen tomorrow. That's what Coca-Cola‘s vision of 2020 is. It creates clear destination for this company business and serves with a "Roadmap" for triumphing together with their pouring out partners. Coca-Cola‘s roadmap starts with a mission, which is lasting. Basic tasks of this company are: „to refresh the world“, „to inspire moments of optimism and happiness“, „to create value and make a difference“. Coca-Cola substantive visions are: people, portfolio, partners, planet, profit and productivity. All these words tell you that Coca-Cola is seeking the best value for all company sectors. They want to be a great place to work. They are bringing high quality products of nonalcoholic beverages. The Coca-Cola’s company reaches for best suppliers, marketing strategies and everything what includes Coca-Cola’s...
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