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Final Project Pepsico vs Coca-Cola

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Submitted By eaglegirl75
Words 3232
Pages 13
Stephanie Burke
XACC/280
September 19, 2010
Sylvia White Shepherd

The purpose for this analysis is to compare PepsiCo to Coca-Cola; this is done by providing a summary of financial accounting information. The information to compare a company to another comes from financial statements and then those numbers are broken down into analysis and ratios. Once the ratios are calculated then the investor can decipher is the company is worth investing in. The information gathered is from the attached financial statements of both companies for the year 2005. Below is a small description of the two companies before comparing them.
PepsiCo manufactures or use contract manufacturers for their products. This company markets and sells a variety of salty, sweet and grain-based snacks, carbonated and non-carbonated beverages, and foods through North American and international business divisions (Navigator). Within PepsiCo one can find them merged with Frito-Lay, Tropicana, Quaker, and Gatorade.
Coca-Cola manufactures carbonated and non-carbonated beverages. New beverages joined Coca-Cola’s line up, including Minute Maid, Powerade, and Dasani bottled water. Coca-Cola is throughout Northern American and international business divisions.
Ratio analysis expresses the relationship among selected items of financial statement data. A ratio expresses the mathematical relationship between one quantity and another. The relationship is expressed in terms of a percentage, a rate, or a simple proportion. To analyze the primary financial statements, an individual or group can use ratios to evaluate liquidity, profitability, and solvency (Navigator).
Liquidity ratios measure short-term ability of the company to pay its maturing obligations and to meet unexpected needs for cash (Navigator). In other words, the company would need to have additional money on hand to pay for an

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