XACC/280
Financial Analysis Coca-Cola verses PepsiCo. Inc. There are many different types of soft drink manufactures in the United States and throughout the world. The two most popular manufactures are Coca-Cola and PepsiCo. They are the two companies that are well known all over the world. These two companies have cornered the soft drink market with their products for many years. Coca-Cola and PepsiCo have kept their prices quite low so they are attractive to all income levels. The marketing of their products (commercials and print) have made their product so attractive that a person just wants to run out and buy the products regardless of their income levels. Each company has also used celebrities to help market their products. In this paper we will review each company’s financial documents to see how each of the companies is doing financially. We will also perform a vertical and horizontal analysis from each of the company’s financial data. Once the analysis is complete I will give recommendations to each company according to the financial review. The companies Coca-Cola and PepsiCo better known as Coke and Pepsi had been around for a long time. Coke has been around since 1886 (http://www.thecoca-colacompany.com) and PepsiCo has been around since 1898 (http://www.pepsico.com). Coke and Pepsi have been the number 1 and 2 for many decades. This is because they are known worldwide. Each company has locations throughout the world and they compete with each other for customers. Each of these companies’s has a similar business plan that is targeted at a particular population. Each company runs their business with high moral and ethical standards and there are many companies out there model their business plans after Coke and Pepsi but not many reach the level that Coke and Pepsi are on. In this financial analysis all of the figures are shown in millions. For example
References: Retrieved from: http://www.thecoca-colacompany.com/ on October 17, 2010 Retrieved from: http://www.pepsico.com/ on October 17, 2010 Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial accounting (6th ed.). Hoboken, NJ: Wiley.