What are the primary lines of business of these two companies as shown in their
ID: 2772885 • Letter: W
Question
What are the primary lines of business of these two companies as shown in their notes to the financial statement?
Which company has the dominant position in beverage sales?
What are the gross profits, net income, EBIT, EBITDA and free cash flow (FCF) for these two companies?
Compute both companies'
current ratio
quick ratio
total debt ratio
debt-equity ratio
total asset turnover
inventory turnover
day’s sales in inventory
profit margin on sales
return on assets
return on equity Fully explain what each ratio is telling you.
Specifically, after calculating the ratios, explain what the ratio is telling you about the company and compare/contrast with the other company. For example, when discussing the day’s sales in inventory and inventory turnover, indicate why there might be a significant difference between the two companies.
You will assume the role of a financial analyst and be creating a full analysis between Coca-Cola and PepsiCo. Please ensure that you fully explain all calculations and that you answer each and every question thoroughly in APA format.
http://www.marketwatch.com/investing/stock/PEP/financials
http://www.marketwatch.com/investing/stock/KO/financials
What ratios do each of these companies use in the Management's Discussion and Analysis section of the annual report to explain their financial condition related to debt financing?
Please include your analytical comments and you should add charts or graphs to prove your point more clearly.
Explanation / Answer
PepsiCo Inc.: This Company markets, sells, and distributes foods, beverages and enjoyable goods to the consumer and authorizes bottlers and manufactures for its product line. The major business lines of the company are snacks and cereals.
Coca-Cola Co.: It is primarily a beverage company and deals in diet, regular sparkling beverages and still beverages. Thus, the major business line of company is beverage.
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