Financial Analysis

Financial Analysis

Final Project - Financial Analysis


XACC/280




Within each company there will always be places that can be improved upon in order to gain a healthier financial status. I will be evaluating PepsiCo, Inc. and The Coca-Cola Company, and their current financial situations to see if or where each company can improve. I will also evaluate each company to see which is more financially stable based upon their current financial reports. You will find not only data from 2004-2005, but also data from 2011-2012 in this paper as I feel the past financial statements can be just as important when trying to determine the stability of a company.
The Coca-Cola Company
A well known company that produces more than 500 nonalcoholic beverages openly stated within their 2012 Financial Report that:
Increased competition could hurt our business.
The nonalcoholic beverage segment of the commercial beverage industry is highly competitive. We compete with major international beverage companies that, like our Company, operate in multiple geographic areas, as well as numerous companies that are primarily local in operation. In many countries in which we do business, including the United States, PepsiCo, Inc. is a primary competitor. Other significant competitors include, but are not limited to, NestlĂ©, DPS, Groupe Danone, Kraft Foods Group, Inc., and Unilever. In certain markets, our competition includes major beer companies. Our beverage products also compete against local or regional brands as well as against private label brands developed by retailers, some of which are Coca-Cola system customers. Our ability to gain or maintain share of sales in the global market or in various local markets may be limited as a result of actions by competitors.  
While I am sure it is necessary for Coca-Cola to place this statement within their financial report, it did make me want to look very closely as to how the competition has affected them.
Vertical Analyses
When looking at the...

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