...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...
Words: 1069 - Pages: 5
...Financial Analysis PepsiCo, Inc. and The Coca Cola have been around for much time exception. Both PepsiCo, Inc. and The Coca Cola Company names have become common house hold around the world today. PepsiCo, Inc. is one of the best in the world of consumer products with many brands of major trading partners and valuable. Division of PepsiCo, Inc. is the second largest soft drinks company in the world, with 21 percent of the beverage market worldwide soft and 29 percent in the United States. The overall mission of adding value to the investment of their shareholders. The company has done this through sales growth, cost control and prudent investment of resources. PepsiCo, Inc. believes that its commercial success depends on the quality of services provided to consumers and customers, products that are safe, wholesome, economically efficient and environmentally friendly, and offer value to investors, while maintaining high standards of integrity (www.fundinguniverse.com). Coca-Cola Company is a leading worldwide consumption of other goods, many countries of the world’s most important and valuable brands. Coca-Cola Company is the largest producer of soft drink sales of 1.3 billion drinks are served every day (www.fundinguniverse.com). Coca-Cola Enterprises red and white logo is the most famous symbol of the world. These companies are mass-produced sparkling and flavored waters for some time and compete in the same market for years. PepsiCo Inc. and Coca-Cola Company is directed...
Words: 1766 - Pages: 8
...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, while PepsiCo global...
Words: 1668 - Pages: 7
... 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. Like all other companies, there are some worst competitors of the...
Words: 2739 - Pages: 11
...The Coca-Cola Company July 24, 2011 CONTENTS Abstract……………………………………………………………………………………………3 Coca-Cola: An Introduction.……………………………………………………………………....4 Financial Analysis………………..……………………………………………………………..…6 Competition Analysis: Pepsi………………………………………………………………………9 Recommendations………………………………………………………………………………..13 Conclusion…………………………………………………………………………………….…15 References………………………………………………………………………………………..16 Abstract Many international corporations began as small domestic ventures. As businesses grew, corporations saw the many possibilities brought on by expanding operations. Companies began to expand by opening franchises in various cities, yet they knew there was more potential for success if they were to expand their operations even further. Thousands of companies, such as Coca-Cola, chose cities internationally to gain more revenue. The purpose of a corporation is to maximize profits for all shareholders involved. Opening firms abroad allowed Coca-Cola to gain worldwide recognition, which gave them a competitive advantage over other soft drink makers. Now, Cola-Cola is not only recognized, but it is one of the most consumed soft drinks both within the United States and in cities across the globe. Coca-Cola took a huge risk in expanding their operations. However, their success proves that multinational corporations need to choose the right market to venture into and choose marketing techniques that appeal to their consumers. Coca-Cola: An Introduction In 1866...
Words: 3706 - Pages: 15
...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...
Words: 2284 - Pages: 10
...Financial Analysis The purpose of my paper is to make financial comparisons between PepsiCo, Inc., and Coca Cola. I will be using Vertical and Horizontal analysis, and as Ration Analysis to form my opinion. PepsiCo, Inc. and Coca Cola have been a part of American life for so long that both companies are both taken for granted even though PepsiCo, Inc and Coca Cola are both internationally know the public does not know much about the history of the two corporate giants. Because I am doing a financial comparison of the two, I wanted to know a little history of each company. Pepsi Cola and Coca Cola are two of the world’s best known cola distributers. They have both become strong in the international marketplace. A little knowledge about the history of each company is in order. Pepsi Cola was founded in the late 1890s’ by a pharmacist named Caleb Bradham from North Carolina. In 1961 the Frito Company founded in 1932 merged with the H.W. Lay Company, founded in 1932, to form Frito-Lay, Inc. 1965 Frito-Lay and Pepsi-Cols merged to become PepsiCo, (Our History, 2009). In 1886 in Atlanta Georgia John Pemberton, a pharmacist trying to make a new flavor for a fountain drink invented Coca-Cola. A few doors down at Jacobs Pharmacy he added Carbonated water and started selling his drink for five cents a glass. Pemberton’s book keeper wrote the script still used today. Pemberton passed away just two years later and in 1888 businessman Asa Griggs Candler bought the rights and turned Coca-Cola...
Words: 1861 - Pages: 8
...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, Nestlé, 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...
Words: 1999 - Pages: 8
... | |FINANCIAL ANALYSIS | |Comparison of PepsiCo. And Coca Cola Company | | | |Comparison of both companies and recommendation on possible improvement | | | | |8/21/2011/ | | | This paper contains financial data analysis from documentation provided in Appendix A and B. In this paper, I will try to show PepsiCo, Inc. and The Coca-Cola Company and their financial situation and where that can be improved. They are the two largest beverage companies in the world, so this comparison will be very interesting. I will show how the tow companies are different and how they have some similarities do to same market target. As we know the Coca Cola is older company and leader on the market, however PepsiCo is climbing up there too. From all the different analysis type’s I have chosen the vertical or common-size analysis. The equations that I am using in my financial analysis include: the assets account and its base account which...
Words: 1843 - Pages: 8
...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...
Words: 1400 - Pages: 6
...Running Head: COMPANY ANALYSIS PepsiCo and Coca Cola Introduction Various organizations around the world have a lot of share in the market. Theses organizations try to make sure that, they work in such a manner that, they have a competitive advantage in the market. Here, in the present paper, the discussion shall include two organizations. The first organization is PepsiCo and the second organization considered here is Coca Cola. These organizations are in the beverage industry and also provide various kinds of food products to the customers. The organizations considered in the present paper have a major share in the market and these organizations try to ensure that, they will continue to have a competitive position in the market in the future. Here, in the present paper, various kinds of things shall be considered. The things will include the financial performance of the organization, the products, stock prices, and the impact of the few events on the stock prices of the organization. In this way, various kinds of things shall be taken into consideration. Description of PepsiCo The organization considered in the present situation is PepsiCo. The organization is an American multinational corporation which is engaged in the beverage and the food industry. This organization is doing its activities in the field of food and beverage industry. The organization provides to the customers by way of manufacturing, marketing and distribution, the grain based snacks. It was...
Words: 2429 - Pages: 10
...You are an Analyst Coca Cola vs Pepsi | | | | | | | | | | | | | | | | | | | ...
Words: 2354 - Pages: 10
...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...
Words: 3091 - Pages: 13
...Juan Galvan University of Phoenix 5/30/10 PepsiCo, Inc. and The Coca Cola Company have both been around for an exceptionally long time. Both PepsiCo, Inc. and The Coca Cola Company have become common house hold names through out the world today. PepsiCo, Inc. is one of the world's top consumer product companies with many of the world's most significant and valuable trademarks. PepsiCo, Inc. division is the second largest soft drink business in the world, with a 21 percent share of the carbonated soft drink market worldwide and 29 percent in the United States. The overall mission is to increase the value of their shareholder's investment. The company has done this through sales growth, cost controls and wise investment of resources. PepsiCo, Inc. believes their commercial success depends upon offering quality and value to their consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to their investors while adhering to the highest standards of integrity (www.fundinguniverse.com). The Coca Cola Company is another one of the other world's top consumer product companies with many of the world's most significant and valuable trademarks. The Coca-Cola Company is the world's number one maker of soft drinks, selling 1.3 billion beverages served every day (www.fundinguniverse.com). The Coca-Cola Companies red and white trademark is best-known brand symbol in the world...
Words: 1834 - Pages: 8
...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 and saturated fat...
Words: 1415 - Pages: 6
