FIN-515
(Managerial Finance)
Project Part A
May 20, 2016

This paper is aimed at examining the financial statements of two companies namely Coca Cola and Pepsi which produce almost similar products, listed in the same stock market and fall within the same industry group. The rivalry between the two companies dates back a century and this debacle sometimes get personal and resonates in their marketing. The Pepsi brand suffered bankruptcy twice in its lifetime but made enormous strides to keep standing, making some important decisions such as expanding their portfolio in the food industry allying with Frito Lay, and becoming Coca Cola’s main competitor and currently positioned as the world’s fourth-largest food and Beverage Company. Both brands have established a differentiated brand image that is well-known around the world but making evident their rivalry.
With both companies listed in the New York Stock Exchange, the debate and competition between the two is as old as the brands themselves. While many will dispute about which taste better, the argument has washed over into which company’s stock investors should own as well. Recent past performance has crowned Pepsi the winner, with Pepsi total returns trending nearly double that of Coke in the past five years.
Some of the critical financial ratios used by investors in making the necessary financial investment decision will be examined in both cases using the income statement, balance sheet and cash flow statement to understand what drives those decisions, and what it say about the overall financial health of the companies.

The Coca-Cola Company
NYSE
Income Statement
Period Ending 12/31/2015 12/31/2014 12/31/2013
Total Revenue 44,294,000 45,998,000 46,854,000
Cost of Revenue 17,482,000 17,889,000 18,421,000
Gross Profit 26,812,000 28,109,000 28,433,000
Operating Expenses
Research Development