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. Using the tools for financial analysis and the information given I will determine the winner of that battle for 2005 at least from the investors point of view.
In our literature it states that a “vertical analysis evaluates financial statement data by expressing each item in a financial statement as a percent of a base amount.” I chose to look vertically at current assets and liabilities, of both companies so I can compare these figures between Coca-Cola and PepsiCo to find out who is in better current standing.
Current assets Vs. Total Assets for PepsiCo:
( 2005)
10454/ 31727 = approx. 33% of total assets are current
(2004)
8639/ 27987 = approx. 31% of total assets are current
Now we will look at the current liabilities vs. total liabilities for PepsiCo
(2005)
9406/ 17476 = approx. 54% of the total liabilities are current
(2004)
6752/ 14464 = approx. 47% of the total liabilities are current
Current assets Vs. Total Assets for Coca-Cola:
2005)
10250/ 29427 =Approx. 35% Current
2004)
12281/ 31441 = Approx 39% Current
And we will look at the current liabilities vs. total liabilities for Coca-Cola:
2005)
9836/ 29427 = Approx. 33% Current
2004...
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...id volume growth for 2005…The company said it earned $864 million, or 36 cents a share, in the fourth quarter, a 28 percent drop from the year before. However, excluding one-time charges, the company earned 46 cents per share, a penny ahead of analysts' expectations. One-time items included taxes on repatriated foreign earnings and a charge related to a bottling investment.(Wilbert, 06)” It is a sad day when you have a 28% drop year over year and exceed “Wall Street expectations.” If I were in their shoes I would do whatever I had to do to entice consumers to put their hard earned cash back in my company even at the cost lower profitability sell for less but sell more…hey it works for Wal-Mart why not you to Coca-Cola. Until they change their investment and marketing strategies I would steer clear of investing in any new Coca-Cola stock for more than a few years.
Coke continuously out-stands Pepsi, even though they share a very similar taste and colour, however Coke should not be the drink that receives all the love and attention for what it offers. Despite their similar soda colour, the drinks actually contain some different ingredients, which produce a different taste, and affect the body differently. Furthermore, the way the companies markets their drinks makes a huge contribution to how successful their products will become. The major element for success however stems from their impact on society and how the companies utilize their social power to evolve. The two major soda companies are constantly head to head with one another, yet it is what they do that sets them apart.
Looking at the historical trends of Coke and Pepsi in terms of EVA we find Coca-Cola's
Over the past thirty days Coca Cola Stock seemed to remain stagnant. While over a long portion of time Coca Cola could be very profitable, as of right now it seems to be a constant range of $40 to $42. The risk with investing in Coca Cola stock is that if one were to be wanting to make money with this stock it would take a very long time. It is more the type of stock someone buys in order to retain their money instead of make money. This is not a bad thing in the long run, but if someone were obtaining their fortune in this way Coca Cola would not be the stock to buy. Something with better fluctuation would suit a person like that. Overall I lost about $1.27, which is not bad at all, considering I bought it at the highest point of the thirty day period. I learned that longevity is not always the best way to go unless someone has a long time to wait it out. Plus this type of stock can remain stagnant for a very long time before skyrocketing or falling off the stock market. Overall, Coca Cola is very risky where it is right now because it is not showing any
Analysis of the Coca-Cola Company The Coca-Cola Company is the world's leading manufacturer, marketer and distributor of soft-drink concentrates and syrups. The Coca-Cola Company is the world's leading manufacturer, marketer and distributor of soft-drink concentrates and syrups. The Company markets many of the world's top soft drink brands, including Coca-Cola, Diet Coke, Sprite and Fanta. Through the world's largest and most pervasive distribution system, consumers in nearly 200 countries enjoy the Company's products at a rate of more than one billion serving a day.
Control of market share is the key issue in this case study. The situation is both Coke and Pepsi are trying to gain market share in this beverage market, which is valued at over $30 billion a year. Just how is this done in such a competitive market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share.
...ges and soft drinks. They have ventured out to non carbonated beverages like iced tea and juices but now need to move into the food market space. My final recommendation for Coca cola is to stay with their product. One of the biggest setbacks for Coca Cola occurred when they introduced their “new coke” in the 1990’s. (Wikipedia, 2010) This new formula did not go over well with their consumers and they were forced to quickly stop the new Coke production.
Coke and Pepsi have been raging war for over a century now, turning their sodas into a multi-billion-dollar industry. Coke has been able to drive more earnings for its bottom line, and while Coke’s net income has been trending downward in recent years, it manages to stay ahead thanks to superior margins. Pepsi, on the other hand, has produced consistent net profit margins of around 10%, while Coke margins have been in the 15-18% range for the past several years (O’Brien). Every company has a Market Cap, which is basically a fancy way of saying how much the company is worth, and Coca-Cola’s market cap is a whopping $180 billion. Pepsi’s Market Cap is $150 billion, which may not seem like a big difference, but $30 billion is a lot of cheddar. Therefore, Coca-Cola owns 51% of the soft drink market, whereas Pepsi only owns 22% of it. Coke claims to own a total of 35 different brands, including Fanta, Sprite, Powerade, Vitaminwater, and many others. Pepsi owns 22 different brands, including 7up, Gatorade, and Mountain Dew “Coke (Coca-Cola) vs Pepsi - Soda
PepsiCo discloses their stakeholder engagement as a contribution towards sustainability. As part of the company social responsibility and sustainability strategic planning, the company has put in place strict policies to guarantee a long-lasting relationship with all its stakeholders. According to the company website, ‘PepsiCo has established a strong relationship with NGOs and routinely engage them to leverage their areas of expertise or interest to help shape their CSR processes and tracking methods. These relationships have helped to better identify sustainability priorities that supports both the business model and the expectations of the stakeholders’ (PepsiCo 2013). PepsiCo invests mainly in activities linked to their chain of management, they totally applied Kramer and Porter’s ideas. Porter explains that businesses are socially responsible today because they realized that socially responsible activities build and develop credibility, integrity, and give competitive advantage.
As we all should know, PepsiCo is one of the world’s leader in convenient food and beverages. PepsiCo shares are traded worldwide and particularly in NYSE (United States). PepsiCo is in the same line with Coca cola and Cadbury Schweppes as the dominating beverage companies. PepsiCo has successfully built a great brand name rivaling with coca cola, probably because PepsiCo unlike coca cola has its own bottling companies. With a competitive strategy based on differentiation rather than cost leadership like its fellow competitors PepsiCo invests highly in new packaging, flavors, formulas to outsmart their competition. Founded in 1919, producing a variety of sweet and grain-based snacks, carbonated and non-carbonated
There are a variety of beverages available to us today with a wide range of differences, some are flavored, carbonated, low calorie, energy boosters, and just plain water. When it comes down to carbonated drinks there are two major rivalry soda companies dominating the market. Coca Cola and Pepsi are two well know cola distributors with very credible history, but the question still remains one is America’s favorite? With the ongoing competition between Coca-Cola and Pepsi, each company is incorporating new strategies for marketing and advertising there brands. When comparing an advertisement from each of the companies, we will review how they appeal to consumers.
There are a variety of beverages available to us today with a wide range of differences, some are flavored, carbonated, low calorie, energy boosters, and just plain water. When it comes down to carbonated drinks there are two major rivalry soda companies dominating the market. Coca Cola and Pepsi are two well know cola distributors with very credible history, but the question still remains one is America’s favorite? With the ongoing competition between Coca-Cola and Pepsi, each company is incorporating new strategies for marketing and advertising there brands. When comparing an advertisement from each of the companies, we will review how they appeal to consumers.
Price and advertising strategy: PepsiCo Overhauls Statergy. PepsiCo plans on saving 1.5 billion dollars in...
The purpose of this report is to compare financial reports from the two largest soft drink manufacturers in the world. The Pepsi Co. and Coca Cola have been the industry's leaders in their market since the early 1900's. I will use relevant figures to determine profitability, and break down key ratios in profitability, liquidity, and solvency. By breaking down financial statements, and converting them to percentages and ratios, comparisons can be made between competitors regardless of size.
This is conducted on financial statements for a single time period only. As with horizontal analysis, it compares items over many time periods. In contrast, vertical analysis only compares many items within the same time period. Likewise, vertical analysis of an income statement or also called a common size statement involves converting each income statement component into a percentage of sales. Additionally, while every item on a balance sheet is expressed as a percentage of total assets held by the company.Moreover, vertical analysis utilizes percentages to compare individual components of financial statements to a key statement figure. Vertical analysis entails changing each income statement element to a percentage of sales. Furthermore, vertical analysis recommends analyzing only one period, however, it can be quite beneficial to compare common size income statements for several
...e and Pepsi’s already established image as producers of premium product is key to discouraging other companies from entering the soft drink industry. However, as the market in the U.S has leveled off, they should continue to invest globally in marketing and advertising for further profit growth, which will in turn positively influence their well established brands to further increase soft drink sales and profits.