Xacc280 Financial Analysis
Financial Analysis
XACC 280
Nov 18th, 2012
Jennifer Parker,
Axia College
Financial Analysis
In this paper, after reviewing and analyzing Appendix A Specimen Financial Statement for PepsiCo and Appendix B Specimen Financial Statement for the Coca Cola Company, I would be providing a financial comparison between the two most known beverages company in the world PepsiCo and Coca-Cola. I will be supporting my financial analysis by showing vertical, horizontal, and ratio financial analysis for both companies. To provide explanation as to what to find in each financial analysis; vertical analysis refers to assets, liabilities and equities as a percentage as a whole. It is a method where each entry for each of the categories in a balance sheet is represented as a proportion of the total account. Horizontal analysis is a method which is used for evaluating financial statements data over a specific period of time. It shows if the company’s performance is improving or decreasing and it can be expressed in numeric amounts or percentage amounts. Finally, the Ratio analysis is the calculation and comparison of ratios which are shown in the company’s financial statements. It determines or states if the company is worth investing in or not.
In order to determine which company has the capability to offer more to its investors and stockholders, it is essential to study each financial set of numbers from several views. For instance; the vertical and horizontal analysis, profits, solvency, and liquidity ratios.
Both PepsiCo and Coca-Cola had to overcome a series of major obstacles through the years in order to get where they are now, both companies has had to deal with legal issues, precedents, and politics. But surpassing those obstacles only made them stronger, and now they are also a good example of how leadership is the power of influence. Both companies came up with a specific main product, their trademark, created a certain taste, invented an appeal for any
XACC 280
Nov 18th, 2012
Jennifer Parker,
Axia College
Financial Analysis
In this paper, after reviewing and analyzing Appendix A Specimen Financial Statement for PepsiCo and Appendix B Specimen Financial Statement for the Coca Cola Company, I would be providing a financial comparison between the two most known beverages company in the world PepsiCo and Coca-Cola. I will be supporting my financial analysis by showing vertical, horizontal, and ratio financial analysis for both companies. To provide explanation as to what to find in each financial analysis; vertical analysis refers to assets, liabilities and equities as a percentage as a whole. It is a method where each entry for each of the categories in a balance sheet is represented as a proportion of the total account. Horizontal analysis is a method which is used for evaluating financial statements data over a specific period of time. It shows if the company’s performance is improving or decreasing and it can be expressed in numeric amounts or percentage amounts. Finally, the Ratio analysis is the calculation and comparison of ratios which are shown in the company’s financial statements. It determines or states if the company is worth investing in or not.
In order to determine which company has the capability to offer more to its investors and stockholders, it is essential to study each financial set of numbers from several views. For instance; the vertical and horizontal analysis, profits, solvency, and liquidity ratios.
Both PepsiCo and Coca-Cola had to overcome a series of major obstacles through the years in order to get where they are now, both companies has had to deal with legal issues, precedents, and politics. But surpassing those obstacles only made them stronger, and now they are also a good example of how leadership is the power of influence. Both companies came up with a specific main product, their trademark, created a certain taste, invented an appeal for any
References: Axia College. (2012). Appendix A Specimen Financial Statements: Pepsi Co, Inc. Retrieved from Axia College, XACC 280 website Axia College. (2012). Appendix B Specimen Financial Statements: The Coca-Cola Company. Retrieved from Axia College, XACC 280 website