...CONTENTS OVERVIEW OF COCA-COLA 3 HISTORY 3 MANAGEMENT 3 DISTRIBUTION 5 SIZE OF COMPANY 5 LOCATIONS OF FACILITIES & CORPORATE HEADQUARTERS 6 STRATEGIC GOALS AND OBJECTIVES 6 COCA-COLA’S VISION 7 PRODUCT LINES, CUSTOMERS, AND MARKET SECTORS 8 FINANCIAL ANALYSIS 9 FINANCIAL ANALYSIS INTRODUCTION 9 HORIZONTAL ANALYSIS 10 VERTICAL ANALYSIS 12 LIQUIDITY ANALYSIS 14 EFFICIENCY ANALYSIS 15 SOLVENCY ANALYSIS 17 PROFITABILITY ANALYSIS 19 MARKET ANALYSIS 21 CONCLUSION 23 APPENDIX A 24 COCA-COLA’S SUBSIDIARIES 24 APPENDIX B 26 FINANCIAL DOCUMENTS 26 COCA-COLA CONSOLIDATED BALANCE SHEET 26 COCA-COLA INCOME STATEMENT 27 COCA-COLA STATEMENT OF CASH FLOWS 28 COCA-COLA’S STATEMENT OF SHAREHOLDERS’ EQUITY 29 PEPSI CONSOLIDATED BALANCE SHEET 30 PEPSI CONSOLIDATED INCOME STATEMENT 31 PEPSI STATEMENT OF CASH FLOWS 32 PEPSI CONSOLIDATED STATEMENT OF EQUITY 34 VERTICAL AND HORIZONTAL ANALYSIS 35 REFERENCES 40 OVERVIEW OF COCA-COLA Since its creation in 1886, the Coca-Cola Company has become one of the leading beverage entities throughout the world. In fact, Coca-Cola products are now sold in more than 200 countries. Coca-Cola’s business is centered on its production of beverage concentrates, syrups, and finished products. It is responsible for producing and distributing four of the top five nonalcoholic sparkling beverage brands across the globe. These include Coca-Cola, Diet Coke, Fanta, and Sprite. The Coca-Cola Company’s distribution...
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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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...however you might say it and that is Pepsi and Coca-Cola. We all know that these two companies are constantly in competition to be the number one manufacturer and distributor of beverages in the world. Pepsi and Coca-Cola are very well known in the beverage community around the world. When a company like either of these two has dominated the markets worldwide then they will receive universal recognition for their very different but similar products. I believe that there are many other manufacturers and distributors of beverages in the world there really is no other company that can compete in my mind. Pepsi and Coca-Cola not only do make soda drinks, but they also produce flavored water, spring water, and some energy drinks. We all know that Pepsi is best known for Pepsi and that Coca-Cola is best known for Coke, but because of their great marketing ability and because of this they are able to target people from all around the world. Pepsi and Coca-Cola have great marketing and low prices that make it easy for people to buy their products no matter how much these people earn or where they live at in the world. I would like to start by examining both company’s income statements and balance sheets to see how each company is doing financially. I will also like to perform vertical and horizontal analysis from their annual report of financial data. There are a vast amount of manufacturers and distributors in this market, but Pepsi and Coca-Cola have managed to stay in the number one...
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...The scope of this paper is to compute the financial ratios of long term rivals of soft drink industry; Pepsi and Coca Cola. In order to calculate the financial position and performance of these companies various ratios for the year 2009 were calculated. These ratios includes debt ratio, liquidity ratios like current ratio, profitability indicators like return on assets, return on equity, operating performance indicators like fixed asset turnover ratio and price/earnings ratio for the investment valuation. Moreover, this paper explained list of financial ratios which can be used to measure the value given to the shareholders and their level of satisfaction and proposed guidelines to be followed when selecting any of these companies to invest in. Apart from financial ratios and performance of these two companies, this paper also discussed the non-financial elements that are important when one considers to invest in a company. DEBT MANAGEMENT OF PEPSI & COKE DEBT RATIO Debt ratio is a type of financial ratio which indicates the proportion of debt a company has to pay against its assets. If the debt ratio of a company is greater than 1 than it means it has to pay more debt than its assets. On the other hand, if the debt ratio is less than 1 then the company is better able to pay its debts. It determines to the investors the level of risk involved in doing business with company (investopedia). The debt ratio of Pepsi Co., for the year 2009, is 0.33 which is...
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...INVESTMENT ANALYSIS OF PEPSI COLA AND COCA COLA PREPARED BY KHALID HAKEEM PRESENTED TO PROFESSOR PETER DATED DECEMBER 10 2012 PEPSI COLA COMPANY A BRIEF HISTORY Pepsi cola has a long and rich history. The drink is the Invention of CALEB BRADHAM a pharmacist and drug store New Bern North Carolina. The summer of 1898 was hot in New Bern North Carolina. So a young pharmacist named CALEB BRADHAM began experiment with combinations of spices, juices and syrups, to create a refreshing new drink to serve his customers. He succeeded beyond all expectations because he invented the beverage known around the world as Pepsi-Cola. At first the drink was named “Braid’s Drink” Caleb decided to rename It Pepsi-Cola and sales started to grow convincing him that he should Form a company to market the new beverage. PRODUCTS OF PEPSI COMPANY: MOUNTAIN DEW MIST AMP ENERGY DRINKS PEPSI IN BOTTLES AND CANS FRITOLAY WALKERS, BAKED TOSTITOS, DORITOS, LAYS TROPICANA: ORANGE JUICES, GRAPE, TWISTER, DOLE, DOLE SENSATION QUAKER: RICE PILAF CAP’N CRUNCH, RONI MACRONI GATORADE: 12oz to 32 oz Drink SERVICES: Shareholder Information, Buy direct plan, direct deposits of dividends...
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...| Coca-Cola Versus Pepsi | The Coke Wars Financial Analysis | | Accounting 557: Financial Accounting Sumadi, Mohammad | | 12/15/2012 | | Possibly one of the biggest rivals in Corporate America today, the battle between Coca-Cola (KO) and PepsiCo (PEP) continues to baffle not only consumers but investors as well in determining which product is a better buy. While both companies have had recent problems in emerging nations such as India by having their products be condemned for improper ingredients, a shakeup like this might be necessary to promote future growth for possibly undersold equities. Coca-Cola Company is the world's leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, with world headquarters in Atlanta, Georgia. In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacist from Atlanta, Georgia. John Pemberton concocted the Coca Cola formula in a three legged brass kettle in his backyard. The soft drink was first sold to the public at the soda fountain in Jacob's Pharmacy in Atlanta on May 8, 1886.About nine servings of the soft drink were sold each day. Sales for that first year added up to a total of about $50. The funny thing was that it cost John Pemberton over $70 in expanses, so the first year of sales were a loss...
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...Coca Cola Wars Case Analysis July 31, 2010 Executive Summary Coca-Cola was invented and marketed in 1886 by a pharmacist named Dr. John Pemberton he named Coca-Cola after the coca leaves and kola nuts he used in order to create the product. Twelve years later in 1898 Caleb Bradham created Pepsi Cola for the beneficial effects it claimed to have on upset stomachs and indigestion. The enmity between the two soda companies are known as the “Cola Wars”. The war began in the 1960’s when Coca-Cola’s supremacy ruled the market as the beverage of choice above Pepsi Cola. Due to the competition between the two rival cola companies actions became extreme and forced both companies to implement strategic methods in order to keep the competitive edge over the other. Coca Cola Wars Case Analysis I. Current Situation: Coca-Cola's and Pepsi Cola’s marketing strategies has been as impossible to tell apart as the products themselves, both companies rely on vibrant colors, catch phrases, attractive people, and famous entertainers to grab consumer’s attention and to entice them into purchasing their products. In 1941 Coca-Cola officially renamed their product to “Coke” as an official trademark with a series of advertisements informing consumers that “Coke” means Coca-Cola (Coca-Cola, 2011). Pepsi was first introduced as " Drink" in 1898 by Caleb Bradham its inventor who created Pepsi at his home, it was later that Bradham changed the name and officially named the beverage Pepsi...
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...Financial Analysis XACC/280 June 29, 2014 Johnny Hamblin Financial Analysis The purpose for this analysis is to compare PepsiCo to Coca-Cola. This will be done by providing a summary of financial accounting information for each company. The information to compare each company comes from financial statements that were provided via Appendix A and B. Those numbers were then broken down into vertical and horizontal analysis as well as ratios. Once the ratios are calculated, an investor can decipher is the company is worth investing in or the company itself can make necessary adjustments to better its numbers. The information was gathered from financial statements of both companies for the year 2004 and 2005. I will provide a description of each of the companies before comparing their finances. Coca Cola was established in 1886 in Atlanta, Georgia. An Atlanta pharmacist by the name of Dr. John S. Pemberton created it (The World of Coca Cola). Frank M. Robinson, is credited with naming the beverage “Coca-Cola” as well as designing the trademarked, distinct script, still used today (The World of Coca Cola). Coca Cola manufactures carbonated and non-carbonated beverages. There are different brand names of soda, sports drinks and also well selling energy drinks. PepsiCo, Incorporated was established through the merger of Pepsi-Cola and Frito-Lay (PepsiCo). Pepsi-Cola was created in the late 1890s by Caleb Bradham. He was also a pharmacist based out of...
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...Strayer 2015 Introduction: World is occupied by a lot of businesses working around it. Out of them little arable to get that much fame that they are known by every single living being around the world. In this paper, we are going to make a comparison of such two beverage giants which are famous all around the Globe. One of them is PepsiCo and other is Coca-Cola. Both of them are operating in the beverage industry and are considered to be the leaders of it. Collectively, both of them are able to grab around more than half of the beverage market share across the globe. Description of PepsiCo PepsiCo Inc. was established in 1965, it was a merger of 2 companies called Pepsi-Cola and Frito-Lay. Pepsi-Cola was formed in 1890s by a pharmacist New Bern. Pepsi is considered to be one of the largest consumer trading companies operating all around the word. Currently it is operating in more than 200 countries of the world. Based on the ranking of revenues earned, PepsiCo is the second largest entity operating in the world of beverages and food items. Edible products of the company are generating more than 60% of the total revenues and remaining is being generated by the beverages section. Company is currently having major 22 brands operating all around the globe...
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...You Are an Investment Analyst Jennifer Nixon Financial Accounting Accounting 557 June 16, 2013 Dr. Alfred C. Greenfield, Jr. Introduction In this paper, I am a representative from Beacon Consulting and Accounting Services. I will be performing a complete evaluation of the Pepsi and Coca Cola companies. I’ve been assigned to complete a stock market analysis that will be presented to a client as part of a professional consultation process. Background information for both companies will included in the analysis in order to provide a summary of each company. Another part of my analysis will include the examination of stock trends for both companies as well as the stock trends that will be based from the initial public offering day to January 1, 2012. I will also display current events that are surrounding both companies to better assist in the analysis. Finally, the financial statements of each company will be analyzed. After all of the information has been gathered, it will be reviewed in order to make a recommendation as to which company will be the best investment opportunity for the client. Analyze each company’s history, product / services, major customers, major suppliers, and leadership and provide a synopsis of each company. Coca Cola was founded in 1886, John Pemberton invented the first prototype of soda. Over a century later, The Coca-Cola Company has produced more than 10 billion gallons of syrup. The company is the world’s leading manufacturer...
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...You are an Analyst Coca Cola vs Pepsi | | | | | | | | | | | | | | | | | | | ...
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...Financial Statements Final Project Financial Analysis This activity is based on an overall objective which is to help executives determine decisions about financing their specific aims are: Understand the elements of the Analysis- Describe some steps to consider for making decisions and help in planning the direction of investments. .-Use common reasons for testing the activity of liquidity and accounts payable .. - Analyze the relationship between debt -Evaluate the profitability of the company for its sales . - Determine the status of the company in the competitive market . -Provide employees with information on the status of such effects on the business. - Financial interpretation is supported by various methods such as comparative breakeven, graphic calculators which significant purpose or financial reasons, which are ultimately the rationale for any accounting information arising The financial analysis has two tools to interpret and analyze financial statements referred to horizontal and vertical analysis, which is to determine the proportional weight (in percent) that each account used within the financial statement. This allows determining the composition and structure of states financials. The vertical analysis is of great importance when determining whether a company has an equitable distribution of assets and according to the financial and operational needs. The objective analysis of vertical analysis...
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...Analyst; Pepsi versus Coca Cola Renee Cole Dr. Tim Creel December 16, 2012 A closer look at PepsiCo and Coca Cola PepsiCo Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist. Then in 1965 Pepsi-Cola and Frito-Lay merged to create PepsiCo(No author, 2012). According to No author(2012) PepsiCo operates in the consumer goods sector and produces a variety of foods and drinks to include Lays and Ruffles potato chips, Doritos, Cheetos, Quaker oatmeal, Aunt Jemima mixes and syrups, Quaker grits, Cap n Crunch, Quaker rice cakes, beverage concentrates, fountain syrups, and finished goods under Pepsi, Gatorade, Mountain Dew, Diet Pepsi, Aquafina, ready-to-drink tea, coffee, and brands licensed from Dr Pepper Snapple. PepsiCo’s major customer is Wal-Mart holding 12% of sales (Nooyi, 2010). Major suppliers include E2M who specialize in packaging and manufacturing consulting and SHI International a regional reseller and global IT provider (Freeman, 2010). No author (2012) stated The president of PepisiCo is Zein Abdalla Indra and Nooyi is Chairman and Chief Executive Officer of PepsiCo, a global food and beverage leader with net revenues of more than $65 billion and a product portfolio that includes 22 brands that generate more than $1 billion each in annual retail sales. PepsiCo’s main businesses – Quaker, Tropicana, Gatorade, Frito-Lay and Pepsi-Cola...
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...Summary Performing a financial analysis is very useful for any businesses to enhance the knowledge of performances, strengths and stability of their financial. This paper intends to compare and contrast the qualitative and financial statements of the past three years of the Multinational companies of soft drinks, Coca-Cola and PepsiCo. Currently, both companies are business competitors and they highly regard their customer’s base loyalty. To familiarize ourselves with these two successful companies, we have to focus on their differences. Coca-Cola was founded in 1886, nowadays is available in more than 200 countries being the most popular beverage with its 94% worldwide recognition and being world’s third valuable brand. Its headquarters are in Atlanta Georgia and they employ nearly 30,000 individuals around the world. PepsiCo was created in 1893 in North Carolina and is sweeter than coke. PepsiCo is one of the World’s top consumer products company with one of the best valuable trademarks, also available in more than 200 countries worldwide. Coca-Cola and PepsiCo control nearly 40% of the entire beverage market but based on Interbrand’s best global brand 2011, Coca-Cola is world’s third most valuable brand; however PepsiCo is number 25 in the list (Saeidinia M., 2010). Moreover, competitors are catching up. The Coca-Cola company main rival is PepsiCo, being the second in the soft drink industry. Coca cola global products are 100% soft drinks and beverage...
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...Valuation and Assessment for the PepsiCo Part1. Macro economic factors and Industry Analysis In recent year, PepsiCo was in the extraordinary complicated economic environment. Economic environment can have a significant impact on PepsiCo. The economic factors such as Gross Domestic Product (GDP), interest rates, high inflation rate and commodity price may affect the PepsiCo current and future performance in large extend. First, the increase of GDP affects the sales of PepsiCo. Pepsi is the world second largest food and beverage business, which sold products in more than 200 countries. In America, the GDP presents a slowly but stable increasing trend, the GDP growth rates were affected, and also influenced the sales of Pepsi America. According to the table 1, it can be seen that the core net revenue has increased 14 percent between 2010 and 2011. In addition, it was estimated that approximately 47 percent net revenue comes from outside the United States. Although most developing countries were suffered from global financial crisis, the GDP growth rates still keep a robust trend. For example, in China, the GDP growth was around 9.5 percent during 2010 to 2012. Therefore, PepsiCo in 2010, the revenue outside the America increased approximately 30 percent, which considerable above the global real GDP growth rate. Secondly, the increase of inflation will affect the profits of PepsiCo. The whole world’s inflation rates have increased in recent year and will continually rise...
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