Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Coke vs pepsi compare and contrast
Comparing and contasting to coke vs. pepsi
Comparing and contasting to coke vs. pepsi
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Coke vs pepsi compare and contrast
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. Coke learned a valuable lesson from their dedicated consumers that they will not support a radical change in a product that they love so well. In this paper, we will explore the financial comparison of each company, a vertical and horizontal analysis of each company and finally, recommendations to improve the financial status of each company. I will start with the Vertical Analysis but first, what does Vertical Analysis mean? Vertical analysis is a method of financial analysis in which each entry for each of the three major categories of accounts (assets, liabilities and equities) in a balance sheet is represented as a proportion of the total account. The main advantages of analyzing a balance sheet in this manner are that the balance sheets of businesses of all sizes can easily be compared. It also makes it easy to see relative annual changes in one business (Weygandlt, Kimmel & Kieso 2008). The vertical analysis is correlated to the base amount in percentage, and the base amount is the total assets for each company at the end of the fiscal year. To obtain the percentage amount, one needs to refer back to the balance sheet and divide these by the total assets for each company. The total asset of eac... ... middle of paper ... ...r metal cans, that can supply the soft drink facilities on site, instead of shipping cans or plastic bottles great distances. The abilities to have a plastic / can manufacture on site, would eliminate the need for transportation cost and warehouse space to store empty cans or bottles on site. One-step further; I would look at eliminating warehouse operations and outsource the warehouse operations totally to a company that specializes in this field. In making, these hard and unpopular decisions you need to look at your core business and question if you are in the business to package soft drinks and what value/profit these operations bring to the Financial Analysis 7 stakeholders. These are a few recommendations that I would make from my knowledge of the filling/packaging/ warehouse operation that I feel could help both, PepsiCo Inc and Coca Cola.
A strong balance sheet gives an investor an idea of how financially stable the company really is. Many professionals consider the top line, or cash, the most important item on a company’s balance sheet. The big three categories on any balance sheet are “assets, liabilities, and shareholder equity.” Evaluating Barnes & Noble’s assets for the time 2014 at $3,537,449, 2013 at $3,732,536 and 2012 at $3,774,699, the company’s performance summarizes that it is remaining stable. These numbers reflect a steady rate over the three year period. Like assets, liabilities are current or noncurrent. Current liabilities are obligations due within a year. Key investors look for companies with fewer liabilities than assets. Analyzing this type of important information, informs a potential investor that if the company owes more money than they are bringing in that this company is in financial trouble. Assessing the liabilities of the balance sheet, for the same time period, it is also consistent with the assets. The cash flow demonstrates a stable performance in the company’s assets and would be determined that the liabilities of this company are also stable. Equity is equal to assets minus liabilities, and it represents how much the company’s shareholders actually have a claim to. Investors customarily observe closely
An important part of financial planning for corporations is the annual report. Publically held companies are required to submit an annual report to the SEC and private companies, even though not required, can use an annual report to gauge the performance of the company for the past year and use the report to plan for the future. The financial statements that make up an annual report are the income statement, the balance sheet, and the statement of cash flows. (Melicher, 2014) Once all of the financial information has been compiled and the three statements that make up the annual report have been completed a corporation can then start to analyze the data. There are several different categories of financial ratios
The first method we will review is the accounting method. Through this accounting approach we will analyze specific ratios and their possible impact on the company's performance. The specific ratios we will review include the return on total assets, return on equity, gross profit margin, earnings per share, price earnings ratio, debt to assets, debt to equity, accounts receivable turnover, total asset turnover, fixed asset turnover, and average collection period. I will explain each ratio in greater detail, and why I have included it in this analysis, when I give the results of each specific ratio calculation.
The organization is able to build a barrier to new entrants in parcel industry. It is very expensive to set up the services that are equal to the existing organizations. There is high fixed cost associated with establishing the required international transport network. This includes ground transportation vehicles, depots, plants and a retail
The soft drink industry in the United States is a highly profitably, but competitive market. In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the United States. They are the Coca Cola Company with 44.1% market share, followed by The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/Seven Up, Inc. with 14.7% market share. Each company respectively has numerous brands that it sales. These top brands account for almost 73% of soft drink sales in the United States. Dr. Pepper/Seven Up, Inc. owns two of the top ten brands sold. Colas are the dominant flavor in the U.S carbonated soft drink industry; however, popularity for flavored soft drinks has grown in recent years. The changing demographics of the U.S population have been an important factor in the growing popularity of these flavored soft drinks. The possible impact of this factor will be addressed later in the case.
Information from the income statement and the balance sheet are used to calculate financial ratios that are useful when making investment decisions.
Common Size Analysis - Balance Sheet (in millions, except number of shares which are reflected in thousands)
It simplifies the comprehension of financial statements. Ratios tell the whole story of changes in the financial condition of the business.
On May 8, 1886, pharmacist John Stith Pemberton stirred up fragrant caramel-coloured syrup in a three legged brass kettle. He carried a jug of his new formulation to the Jacobs's Pharmacy, Atlanta. On the following day, the new product debuted as a soda fountain drink for five cents a glass. By accident or by design, carbonated water was mixed with the syrup which has created the world's most popular drink.
American Soft Drink and the Company That Makes It. 3rd ed. New York: Basic, 2013.
Although the balance is useful, it has its limitations. The primary limitation of the balance sheet is that it does not reflect the current value or worth of a company. In essence the importance of the balance is that it provides the financial position of a company on a particular date. It helps external users assess the financial relationship between assets, liabilities, and the owner’s equity. Assets and liabilities are usually classified as either current or long term and presented in descending order of liquidity. (W. Steve Albrecht, 2002)
Coca –Cola (KO) is one of the world’s largest beverage companies. Company was incorporated in September 1919 under the State of Delaware law and headquarters is located in Atlanta Georgia. But from 1886, company established its brand in US (Coca-Cola, 2012, p. 1). Currently company is providing for more than 500 varieties of non-alcoholic sparkles to the customers around the world. Apart from this, company also serve for still beverages that includes enhanced water, water, ready-to-drink, juices, energy drink, sport drinks and so on.
Experimentation with the new market for carbonated beverages on the decline coke has done experiments in new flavors and healthier alternatives to try to stay competitive. As well as investing in “Keurig Green Mountain is a K-Cup maker but has a new Keurig Cold that can deliver Coca-Cola through the new system.” (Cooper, 2014)
These accounting information are so much important for the business owner or financial statements reader to analyze the company and make the economics decision.
The accounting equation-: Accounting equation tells us a easy way to understand that law assets, liabilities of