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Xacc/280 Final
Ratio, Vertical, and Horizontal Analyses
Regina Stewart
XACC/280
February 3, 2012
Jose Rodriguez

Ratio, Vertical, and Horizontal Analyses
A detailed examination of the tools used in financial analysis, in addition to their various functions, is provided within this paper. The current ratio and calculations on the questions are provided herein.
A variety of tools are used to assess the importance of financial data. Frequently used tools of financial statement analysis consist of horizontal analysis, vertical analysis and ratio analysis. These techniques assist in the evaluation of financial statements providing information regarding the financial condition of a business.
Evaluating the data of financial statements over a period of time, …show more content…
Pepsico horizontal analysis
2005 Total Current assets2004 Total Current assets×100 104548639×100=121.01%
2005 Total Current liabilites2004 Total Current liabilities×100 94066752×100=139.31%

Analysis
Current assets and current liability increased in 2005 in comparison to 2004, but, the current liability increased at a higher rate which caused a reduction in the gross profit.
Current ratio computation for Coca-Cola Company
Coca-Cola Company current ratio for 2005
Current ratio=Current assetsCurrent liabilities Current ratio=102509836=1.04
Coca-Cola Company current ratio for 2004
Current ratio=Current assetsCurrent liabilities Current ratio=1228111133=1.1
Analysis
Low current ratios values imply that a company could have trouble meeting current obligation but a very high current ratio could imply that the company is not managing its resources well.
Two measures of vertical analysis of Coca-Cola Company
Coca-Cola company vertical analysis for the year
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