Financial Analysis: PepsiCo and Coca Cola Essay

:: 3 Works Cited
Length: 1805 words (5.2 double-spaced pages)
Rating: Aqua      
Open Document
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Together both PepsiCo and Coca Cola are both companies that are known around the world for their goods. For decades now, these companies have been competitive against each other to “do better than” the other one, what some would call the “cola wars”. They individually offer a assortment of soft drinks; regular, diet, caffeine free and many other options for the public to choose from. Both of the companies also have quite a few different entities (or off springs) of their company, such as bottled water, energy drinks, and juices. Individually both PepsiCo and Coca Cola; better known as Pepsi and Coke, have produced goods for every income bracket.
Inside this essay we will take a look into the two largest competing companies in the soft drink industry; Coca Cola and PepsiCo. Using financial data provided from 2004 and 2005, we will be able to use financial analysis, both vertical and horizontal, to verify the financial differences between the two companies. We should be able to make proper suggestions and recommendations with the review on both of the individual companies, income statements and balance sheets.
The soft drink industry is one of the largest and assorted industries in the world; consumption in the United States alone is rated at 95%. Together Pepsi and Coke have dominated the soft drink industry, staying higher than any other competition for decades. Not only have they dominated the national market, but also have dominated the global market. Pepsi and Coke have triumphed over many obstacles, so that they may produce and distribute products in most countries around the globe. Both employ a strategy called “the follow up strategy”. When one launches a new product or service, the other is not far behind with a similar p...

... middle of paper ...

...ttling unit. This will help Pepsi to eliminate competition with any private label companies and keep them on the forefront with Coke. Coca Cola believes in reinvesting into their infrastructure and does not operate a franchise system.
When it comes to figures, Pepsi seems to have more advantages (other entities), whereas Coke is getting better figures. This does not mean either company is better than the other, it shows that there is a tight competition between both companies and both are striving to surpass the other.

Works Cited (2009). Retrieved on: April 15, 2011
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial accounting (6th ed.). Hoboken, NJ: Wiley.
The Coca Cola Company. (2009). Retrieved on: April 15, 2011

Click the button above to view the complete essay, speech, term paper, or research paper

This essay is 100% guaranteed.

Title Length Color Rating  
Financial Analysis: PepsiCo Beats Coca-Cola Essay - Pepsi vs. Coke the epic battle that every American and from the looks of their financial statements possibly everyone in the world must deal with does it have a winner. For the fiscal year 2005 it certainly does through analyzing financial statements with vertical, horizontal, and ratio analysis investors are able to clearly decide who the better choice for their investment is. By careful scruitiny and attention to detail any investor can safely put their money in a buiseness as an investment so long as they are adhering to rules and regulations of the GAAP....   [tags: Pepsi, Coke, business,] 1706 words
(4.9 pages)
Powerful Essays [preview]
Management Report of the Comparison between Coca-Cola and PepsiCo - Current Strategic and Financial Analysis Introduction: A SWOT analysis for Coke and Pepsi will cover the following: The company’s strengths and competitive advantages over the other; The weaknesses of external and internal factors leading towards a decline in revenue sales; Opportunities to buy into and make risky business decisions of either entering new markets or acquiring another company; Threats to the market and legal cases that each company faces. Coca-Cola Strengths: • Today Coca-Cola controls 42% of the soft drink market....   [tags: Current Strategic and Financial Analysis]
:: 5 Works Cited
1744 words
(5 pages)
Powerful Essays [preview]
The Financial Status of PepsiCo, Inc. and Coca-Cola Essays - When looking at the financial status of PepsiCo, Inc. and Coca-Cola, every dollar amount in every column has some significance. To find out what these amounts represent a financial comparison of both companies is required. Using financial analysis tools such as vertical analysis, horizontal analysis, and ratio analysis, one can get a clearer picture of the financial status of each company. Horizontal Analysis When evaluating financial statement data for a specific period of time we use a technique call horizontal analysis....   [tags: financial status, companies, economics, ] 2622 words
(7.5 pages)
Powerful Essays [preview]
Vertical Analysis of PepsiCo and Coca Cola Essay example - All companies use financial documents to record and journalize their business transactions. These financial documents are not only used internally by company executives, but the financial documents are also used by outside sources to evaluate the strengths and weaknesses of a company. The purpose of this paper is to provide financial analysis of PepsiCo and Coca Cola, provide examples that explain which company is more financially sound, and to provide recommendations on how to improve each company financially....   [tags: Business Analysis ] 1871 words
(5.3 pages)
Powerful Essays [preview]
Essay about Vertical Analysis of Coca Cola and PepsiCo Inc. - In the global consumer consumption of soft drinks, two global leaders that need no introduction to young and old, are Coca Cola and PepsiCo Inc. However, these cola drinks are also called "Pop" or "soda" most people just order Coke or Pepsi, please. For over the past 100 years both companies have competed against each other to bring a new twist to the consumer, by introducing new soft drink, offer public taste test to the consumer and doing the unthinkable as Coke tried to change the core formula....   [tags: Business Analysis] 1812 words
(5.2 pages)
Powerful Essays [preview]
Financial Analysis of Pepsi Co, Inc. and The Coca-Cola Companies Essay - Performing a financial analysis of a company allows an investor or creditor to fully understand the make-up of that particular company. For Pepsi Co, Inc. and The Coca-Cola Companies the below vertical and horizontal analysis along with selected ratios provide details on each company to allow comparison between them. Pepsi Co, Inc. shows a great deal of assets and property ownership while The Coca-Cola Companies net revenue is lower their net income is higher. The Pepsi Co, Inc. has more assets than the Coca-Cola Company, but more of their assets are owned by creditors....   [tags: Financial Analysis, Financials, economics, ] 1757 words
(5 pages)
Powerful Essays [preview]
An Analysis of PepsiCo and Coca-cola Essay - Since the mid 1980’s many of us have become familiar with the terms “the Cola Wars” (Wikipedia, 2010). Coca Cola and Pepsi have been the two largest soft drink competitors in the world for quite some time now. What makes these companies successful. What gives them the retention to prosper for years across the globe. For this project I analyzed the financial statements from 2003 through 2005 of both companies to gain insight as to these questions and others. By reviewing and then analyzing the data it becomes visible that these two companies are still standing strong in a market that is still dominated only by each other....   [tags: Business Analysis] 1835 words
(5.2 pages)
Powerful Essays [preview]
Financial Analysis of Coca-Cola and Pepsi Co. Essay - PepsiCo and Coca-Cola are fierce competitors and according to their financial statements they are both healthy companies. Therefore I would invest in Coca-Cola if I had to make the decision because it has higher income, a stronger long-term debt to networking capital ratio, steadily rising net income per common share, and a climbing and high solvency ratio. PepsiCo still shows healthy growth and outperforms Coca-Cola in many areas. I will conduct a financial analysis of Coca-Cola and PepsiCo to identify their strengths and weaknesses, ultimately deciding which one is worth the investment....   [tags: Business Analysis]
:: 1 Works Cited
1955 words
(5.6 pages)
Term Papers [preview]
PepsiCo versus the Coca Cola Company Essay - ... Coca Cola’s sales for 2013 were 46.85 billion dollars and PepsiCo’s sales for 2013 were an impressive 66.42 billion dollars. The beverage industry ratio for the 5-year annual average of sales increased by 9.28%, this number for PepsiCo was 8.96% a tad higher than for Coca Cola at 7.96%. Growth of dividends a company pays to its shareholders annually is another area investors consider. PepsiCo’s 5-year dividend average for 2013 was 6.30; Coca Cola reported this as 8.06 while the industry average was 8.20....   [tags: soft drink industry competition] 2161 words
(6.2 pages)
Research Papers [preview]
Coca-Cola (KO) Analysis Essay - Coca-Cola Corporation and its Competitors Coca-Cola was discovered as a result of an accident. In 1886 a pharmacist named John Pemberton cooked up medicinal syrup. When he was done, he figured he had created a fine tonic for people who were tired, nervous, or plagued with sore teeth. He and his assistant mixed it with ice water, sipped it, and proclaimed it tasty. They wanted some more, and the assistant accidentally used carbonated water to mix the second batch. Instead of medicine, these men had created a fizzy beverage - one that is now consumed around the world....   [tags: Invention of Coca Cola]
:: 1 Works Cited
2367 words
(6.8 pages)
Strong Essays [preview]