Financial Analysis of Coke and Pepsi
Financial Analysis
Synopsis
In this paper, you will find financial comparisons on both PepsiCo and the Coca-Cola Corporation. Some increases in certain areas of one company and some decreases in areas of another company. There are vertical analysis, horizontal analysis, and ratios of both the industries. These are still the two leading soft drinks in the industry, and most like will remain the leaders in the upcoming years.
Financial Analysis
The purpose of this paper is to provide a financial analysis comparison between PepsiCo and the Coca-Cola Cooperation. Many companies are forever finding ways to improve market value to increase sales, and income. Consumers will always look for deals or special buys to not only save them money but also, give them better quality. Companies are always looking for ways to make profits when marketing their products. This paper analyzes the financial statements of the two leaders in the soft drink industry. Looking at the Consolidated Statements of Income and the Balance Sheets of both companies, one might determine which would be the better company to invest their money. One of these companies has a greater increase in sales, profit gain, net cash, and income than the other one. Using calculations of Ratios, Horizontal Analysis and Vertical Analysis will show why one company would be the better choice in investing than the other.
Performing a Vertical Analysis or Common Size, A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities and equities) in a balance sheet is represented as a proportion of the total account. The main advantage of vertical analysis is so that the balance sheets of businesses of all sizes can easily be compared. It also makes it easy to see relative annual changes within one business (http://www.investopedia.com/terms/v/vertical_analysis.). The Vertical Analysis is represented as a percentage of a base amount. Each
Synopsis
In this paper, you will find financial comparisons on both PepsiCo and the Coca-Cola Corporation. Some increases in certain areas of one company and some decreases in areas of another company. There are vertical analysis, horizontal analysis, and ratios of both the industries. These are still the two leading soft drinks in the industry, and most like will remain the leaders in the upcoming years.
Financial Analysis
The purpose of this paper is to provide a financial analysis comparison between PepsiCo and the Coca-Cola Cooperation. Many companies are forever finding ways to improve market value to increase sales, and income. Consumers will always look for deals or special buys to not only save them money but also, give them better quality. Companies are always looking for ways to make profits when marketing their products. This paper analyzes the financial statements of the two leaders in the soft drink industry. Looking at the Consolidated Statements of Income and the Balance Sheets of both companies, one might determine which would be the better company to invest their money. One of these companies has a greater increase in sales, profit gain, net cash, and income than the other one. Using calculations of Ratios, Horizontal Analysis and Vertical Analysis will show why one company would be the better choice in investing than the other.
Performing a Vertical Analysis or Common Size, A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities and equities) in a balance sheet is represented as a proportion of the total account. The main advantage of vertical analysis is so that the balance sheets of businesses of all sizes can easily be compared. It also makes it easy to see relative annual changes within one business (http://www.investopedia.com/terms/v/vertical_analysis.). The Vertical Analysis is represented as a percentage of a base amount. Each
References: Investopedia ULC. (2011). Retrieved from http://www.investopedia.com/terms/v/vertical_analysis. Web Finance Inc. (2011). Retrieved from http://businessdictionary.com/horizontal-analysis Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ: Wiley.