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 New Bern, North Carolina. Pepsi also offers different brands of beverages as well as snacks due to being a sister store to Frito-Lay. The Pepsi-Cola site actually provides the yearly financial reports to give consumers the opportunity to watch its growth. Each company has its good and bad situations. In the analysis, certain topics will be discussed and pinpointed to make valid