...Christine Worth MBA515 Financial Statement Analysis Project Outline Compare & Contrast Coca-Cola vs. PepsiCo Financial Analysis Income Statement vs Cash Flow Accounts with greatest difference Evaluation of Fiscal Period Profitability Liquidity Leverage Financial Reporting Practices Methods for Accounting Coca-Cola Pepsi Company Disclosures Compare & Contrast Clarity & Completeness Critical Analysis Decision Investment Equity Investor Coca-Cola Company verses PepsiCo Critical Analysis of Investment The three financial statements required for external reports are the income statement, balance sheet, and statement of cash flows. The statement of cash flow highlights the major activities that impact cash flows, which affect the overall cash balance (Garrison, Noreen & Brewer, 2012). Equity investors utilize these financial statements for a critical analysis of the firm’s financial stability before making an investment. Based on a comparison of the income statements to the statements of cash flows for Coca-Cola and PepsiCo, the following accounts report the greatest differences between net income and cash flow from operations. Coca-Cola Company 2010 2009 2008 * Gain from Sale of Asset $(5,358) $(43) $(130) * Income of Equity Investments (671) (359) 1,128 * Change in Accounts Payable 656 319 (576) * Change in Other Working Capital (161) (510) (41) PepsiCo 2010 2009 2008 * Income...
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...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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...Coca-Cola Company Case Study GB 518 Financial Accounting Principles and Analysis Kaplan University SUMMARY Accounting is an important aspect of business because it is the foundation that offers support to management for planning, and controlling activities as well as decisions. When an organization is doing business they need a way to keep score of operational financial activities. The purpose of my research paper is to discuss the details of my interview with an accountant at Coca-Cola Company, Atlanta headquarters. Mr. Joe Angus has worked with the company for twelve years and sat down with me for a 25 minutes interview in his office to eagerly share the accounting practices of the company, and the operating activities within the business that generates revenue and move the business forward. Company Overview The Coca-Cola Company is the largest beverage company in the world that provides consumers with more than 500 sparkling and still brands of refreshing drinks. While Coca-Cola is the most valued brand in the company’s portfolio, it features 15 billion dollar brands including Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitamin water, PowerAde, Minute Maid, Simply, Georgia and Del Valle. Globally, Coca-Cola Company is the number one provider of sparkling beverages, ready-to-drink coffees, juices, and juice drinks. Throughout the world’s largest beverage distribution system, consumers in more than 200 countries enjoy Coca-Cola Company beverages at a rate of more...
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...Corporate Financial and Sustainability Reporting: Coca-Cola The company that I chose was The Coca-Cola Company. Their last fiscal year ended on December 31st, 2010. “Coca-Cola is the world’s largest nonalcoholic beverage company” (Coca-Cola). They distribute and market more than 500 nonalcoholic brands from soda pop, to juices, to even sports drinks. Coca-Cola is known as the world’s most valuable brand that owns four of the planets top five nonalcoholic beverages including Sprite, Diet Coke, and Fanta. Coca-Cola distributes their products to more than 200 countries and this is made easy by having the world’s largest beverage distribution system. This company believes that its success is from being able to link up with their customers to be able to provide them with many options to meet their specific choices and desires. The overall goal of The Coca-Cola Company is to use their assets in the most efficient way possible so they can become more competitive and grow as a company to generate revenue for their shareholders. The Coca-Cola Company has expanded its horizons in recent years. On October 2, 2010 the company bought out the North American business of Coca-Cola Enterprises Inc., which is one of Coke’s main bottling companies. With this acquisition “The Coca-Cola Company now has more presence in the U.S., Canada, the British Virgin Islands, the U.S. Virgin Islands and the Cayman Islands “(Coca-Cola). Not only this but The Coca-Cola Company is merging this purchase with one of...
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...Balance Sheet Analysis……………………………………………………………………………..…. 4, 5 c) Stock Analysis……………………………………………………………………………………………… 5 d) Income Statement Analysis…………………………………………………….................................. 5, 6 1. Income Reporting Methods…………………………………………………………………………… 5 2. Income Reporting Trends…………………………………………………………………………...… 6 b) Cash Flow Statement Analysis…………………………………………………................................ 8, 9 1. Cash Reporting Methods……………………………………………………………………………… 8 2. Cash Reporting Trends………………………………………………………………………..…. 9, 10 3. Conclusion…………………………………………………………………………………………………..... 10 4. Bibliography…………………………………………………………….…………………………………….. 11 Introduction Coca-Cola Company was established in 1892 in North America, and has since expanded successfully into the international market, now doing business in over 200 countries around the world (Coca-cola.co.uk. 2013). Coca-Cola sells a wide variety of beverages from water to soft drinks, sports drinks, and teas. Coca Cola Company has acquired existing beverage brands over the years, including Minute Maid and Honest Tea, Inc. Coca-Cola follows the strict financial reporting guidelines established by the ISAB and FASB, and reports financial activities in an unbiased and transparent way. The following analysis looks at the financial statements of Coca-Cola Company during the years of 2010,...
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...You are an Analyst Coca Cola vs Pepsi | | | | | | | | | | | | | | | | | | | ...
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...Financial Management: PepsiCo and Coca-Cola 2009 Annual Reports BUS 500 Instructor: Gary Shelton December 7, 2010 Abstract In this paper I will use the information obtained from the PepsiCo and Coca-Cola 2009 annual reports to determine financial information about these companies. I will answer questions about the companies assets and liabilities, profits, and if they can satisfy stockholders. What conclusions can you make about each company’s ability to pay current liabilities? A company’s liabilities are their legal debts and obligations. Liabilities can come up during the company’s business operations and are settled over time. They are settled through by transferring money, goods or services. A list of a company’s liabilities can be found on the balance sheet for the company. Included in the liabilities are loans, accounts payable, mortgages, deferred revenues, and accrued expenses. A company’s ability to pay its liabilities can be determined by analyzing the amount of assets as opposed to the amount of liabilities. To do this you will need to find the current ratio for the company. The current ratio is used to determine if a company’s short-term or current assets are available to pay off its short-term or current liabilities. The liabilities of PepsiCo can be found on the company’s Consolidated Balance Sheet. PepsiCo’s total current liabilities equal 8.765 million dollars. Its total liabilities equal 22.406 million dollars. Its total current assets...
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...Problem Part 2 A balance sheet and income statement is important for creditors, investors and employees to analyze assets versus liabilities. This will allow them the ability to operate efficiently and determine how quickly the company can pay off its debts. To provide a clear picture on how fast a company will be able to come up with cash, a person needs to understand the value of each asset, how the asset is classified, and the order in which they are listed. On the other hand, understanding the impact of each liability and previous to current trending of total liabilities will show if the company is able to control their liabilities or if they are accumulating additional obligations to repay overtime. Below you will see an analysis of the Coca-Cola Company’s assets versus liabilities and it will answer the questions of if and when they have the ability to repay debts. In a balance sheet, a company lists its assets and specifies which assets it is expecting to covert to cash within the next operating cycle. These assets are named “current assets” and should be listed in the order in which they typically can expect to receive cash for them. Coca-Cola’s current assets are listed in the following order in their balance sheet: cash and cash equivalents, short-term investments, marketable securities, trade accounts receivable, inventories, prepaid expenses, and assets held for sale. The cash and cash equivalents asset is on top of Coca-Cola’s current assets list since it has been...
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...Financial Statement Development and Analysis Part A Three (3) of the financial disclosures that would provide evidence as to whether Coca-Cola is achieving its objective are: Coca-Cola’s mission declares the company purpose and standards by which Coca-Cola will operate. Coca-Cola’s roadmap starts with a mission that is lasting. The basic tasks of Coca-Cola are: to refresh the word, to inspire moments of optimism and happiness and to create value and a make a difference. Maximizing shareholders value over time is Coca-Colas’ mission. In order to achieve this mission, Coca-Cola Company has to execute a business strategy driven by four key objectives: maximize its long-term cans flows and create economic value added by improving economic profit, and increase volume, expand the company share of worldwide nonalcoholic ready-to drink beverages sales. The balance sheet is one of the major financial statements. It shows the company financial position at the end of any specified date. It is sometimes consider the snap shot of the company financial position at any point or time. The balance sheet allows anyone to see what the company owns as well as what it owes. When you are looking at the balance sheet it will cover the assets, liabilities and owner’s (Stockholders’) equity. Assets are things that are owned by the company. These are resources that will have future economic value that can be expressed and measured in...
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...Financial Analysis I think that when it comes down to it PepsiCo and Coca Cola are companies that been around for a very long time and have established relationships with their brands with consumers all over the world. The purpose of this paper is to help breakdown both companies by explaining both financial positions along with showing their strengths. Listed below in this paper are going to be examples that show vertical, horizontal and ratio analysis. The calculations that have been conducted which are listed below are basically intended as a visual to help show which company may appear more secure. Along with that I will provide some recommendations that may seem to help improve the growth of each company. There are a few tools that are used to help evaluate financial statements and that are quite used often in accounting and those tools are Horizontal Analysis, Vertical Analysis and Ratio Analysis. In the preliminary calculation which will be the Vertical Analysis which is often defined as “common size. When it comes down to it this analysis objective is to basically assess the company’s financial statements by assigning certain percent from the base amount to each item of financial statements; this type of evaluation is often used for inter-and intra-company needs according to (Weygandt, Kimmel, Kieso, 2008). A really good example of vertical analysis that is calculated for PepsiCo generally shows and compares its assets in number and percent figures for 2004 and...
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...- Part Seven Desiree’ Pressley September 12, 2015 MBA620: Accounting for Decision Makers Summary of the major capital investments made by PepsiCo and The Coca Cola Company In 2014, purchases of investments for The Coca Cola Company were $17,800 million and proceeds from disposals of investments were $12,986 million. This activity resulted in a net cash outflow of $4,814 million during 2014. The purchases during the year ended December 31, 2014 include The Coca Cola Company investment in Keurig, partially offset by the net purchases and proceeds of our short-term investments, that were made as part of the Company’s overall cash management strategy. In 2014, the Company’s acquisitions of businesses, equity method investments and nonmarketable securities totaled $389 million, which primarily included a joint investment with one of our bottling partners in a dairy company in Ecuador. None of the Company’s other acquisitions or investments were individually significant. (The Coca Cola Company, 2015) The Coca Cola Company purchases of property, plant and equipment net of disposals for the years ended December 31, 2014 is 2,406 million. In 2014, other investing activities were primarily related to loans to Fairlife, LLC, a value-added dairy joint venture, as well as local investments in Argentina. (The Coca Cola Company, 2015) To meet this growing demand, PepsiCo plans to continue to grow their portfolio of more nutritious products as well as to reduce added sugar, sodium...
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...Financial Statement Analysis ACG203-CE Marianne Marchant Margaret Pesikov Sean Lenehan Jeff Braga 2 Table of Contents Questions to be answered Management Discussion & Analysis section and Miscellaneous Income Statement and Profitability Cash Flows Balance Sheet Liquidity and Efficiency Solvency 3 3 6 12 14 18 22 Relevant Documents Balance Sheet Income Statement 25 25 26 Evaluation 27 3 Questions to be answered: Management Discussion & Analysis section and Miscellaneous 1. Read the Management Discussion and Analysis and the Chairman’s letter to shareholders. Describe the major products and services of the company. The Coca-Cola Company is the leading owner and marketer of nonalcoholic beverage brands. Coca-Cola either owns or licenses 500 of the world’s nonalcoholic beverage brands. Coca-Cola is recognized as the world’s most valuable brand. There are approximately 54 billion beverages of all kinds served worldwide, of the 54 billion Coca-Cola accounts for approximately 1.6 billion of those beverages. Coca-Cola sells syrups, concentrates, and sodas to bottling companies and retailers. 2. Describe some of the specific details of the company’s financial and operational performance. Based on what you read in the Management Discussion & Analysis sections, do you get a positive or negative impression about the company? Describe why. Coca-Cola follows the accounting principles that are generally accepted in the United States...
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...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 – make hundreds...
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...Inc. and Coca Cola company. The comparison will reveal the financial status of each company according to the consolidated statements of income and the balance sheets provided for both companies. Current Ratio * Pepsico Inc. Consolidated Balance Sheet 2005 | 2004 | $31,727/$17,476 = 1.81 | $27,987/$14,464 = 1.93 | Answer – 1.81:1 | Answer – 1.93:1 | * Coca Cola Company’s Consolidated Balance Sheet 2005 | 2004 | $10,250/$9,836= 1.04 | $12,281/$11,133 = 1.10 | Answer – 1.04:1 | Answer – 1.10:1 | Horizontal Analysis * Pepsico Inc. Consolidated Balance Sheet $10,454/$8,639 = 1.21% $9,406/$6,752 = 1.39% * Coca Cola Company’s Consolidated Balance Sheet $10,250/$12,281 = 0.83% $9,836/$11,133 = 0.88% Vertical Analysis * Pepsico Inc. Consolidated Balance Sheet Current Assets | 2005 | 2004 | $10,454/$31,727 x 100 | $8,639/$7,987 x 100 | 32.94% | 30.86% | Current Liabilities | 2005 | 2004 | $9,406/$17,476 x 100 | $6,752/$14,464 x 100 | 53.82% | 46.68% | * Coca Cola Company’s Consolidated Balance Sheet Current Assets | 2005 | 2004 | $10,250/$29,427 x 100 | $12,281/$31,447 x 100 | 34.83% | 39.05% | Current Liabilities | 2005 | 2004 | $9,836/$29,427 x 100 | $11,133/$31,441 x 100 | 33.42% | 35.40% | Current Ratio * Pepsico Inc. Consolidated Statements of Income 2005 | 2004 | $31,727/$17,476 = 1.81 | $27,987/$14,464 = 1.93 | Answer – 1.81:1 | Answer – 1.93:1 | * Coca Cola Company’s Consolidated...
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...Written Assignment Unit 2 Established in 1886, by Dr. Doctor John Pemberton, a pharmacist from Atlanta, Georgia, (Journey Staff, n.d.) the Coca-Cola Company is an American based multinational beverage corporation that operates all over the world. It is a “corporation, manufacturer, retailer, and marketer of nonalcoholic beverage concentrates and syrups, including the famous Coca-cola drink and many other beverages” (Soft Drink Mission Statements, 2015). It features “brands like Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, Powerade, Minute Maid, Simply, Georgia, Dasani, Fuze tea and Del Valle.” (The Coca-Cola Company, 2015). According to its website, it is “the number one provider of sparkling beverages, readyto- drink coffees, juices,...
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