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Financial Analysis For this assignment, you will apply what you have learned thus far from the unit lessons and required unit resources. You will conduct a financial analysis of the Coca-Cola Company...

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Financial Analysis

For this assignment, you will apply what you have learned thus far from the unit lessons and required unit resources.

You will conduct a financial analysis of the Coca-Cola Company and PepsiCo. Write a five-page paper that evaluates each firm, and provide your findings and recommendation for investment or employment.

Your paper should consist of the components listed below.

  • Provide a company overview for both companies, which should be one page in XXXXXXXXXXlength.
  • Include a comparison of three accounting methods (i.e., receivables, XXXXXXXXXXdepreciation, and inventory valuation), which should be one page in length XXXXXXXXXXformatted either as a table or an outline).
  • Provide four ratio calculations (i.e., one ratio each for liquidity, XXXXXXXXXXsolvency, profitability, and market) as well as an analysis, XXXXXXXXXXwhich XXXXXXXXXXshould be XXXXXXXXXXtwo pages in length.
  • Include your recommendations and conclusions, which should be one page in XXXXXXXXXXlength.

You are encouraged to utilize the resources below to support your findings.

PepsiCo. (2019). 2018 PepsiCo annual report XXXXXXXXXXhttps://www.pepsico.com/docs/album/annual-reports/2018-annual-report.pdf?sfvrsn=35d1d2bc_2

U.S. Securities and Exchange Commission. (2019). Form 10-K: The Coca-ColaCompany (Commission File No XXXXXXXXXX) XXXXXXXXXXhttps://www.coca-colacompany.com/content/dam/journey/us/en/policies/pdf/shareowner-services/2018-annual-report-on-form-10-K.pdf

You may submit an appendix with any research you conducted—beyond the XXXXXXXXXXcompanies’ most recent 10-Ks—to support your analyses and recommendations XXXXXXXXXXYour paper should include appropriate reference citations.

Write your responses in a Word document, and include at least two resources to support your findings. Adhere to APA Style when creating citations and XXXXXXXXXXreferences for this assignment.

Answered 1 days After Jan 11, 2021

Solution

Nitish Lath answered on Jan 13 2021
164 Votes
1. Brief Overview of the selected Entities
The Coca Cola Company
The Coca Cola Company is considered as one of the biggest non-alcoholic beverage entity in the world and known as one of the most recognizable
and over the world. It comprises of more than five hundred beverage
and and in this around twenty
and are considered as billion dollar
ands. It comprises of top soft drink
and such as Coca-Cola, Diet Coke, Fanta, and Sprite. Besides the production of the soft drink it is engaged in the marketing of water, enhancement of water and sports drink, drinks related to juices, beverages based on the dairy and plant, ready to drink tea and coffees and other energy drinks. It also comprises of various other top
ands such as Minute Maid, Powerade, Dasani and Honest Tea. This is having the largest beverage distribution system all over the world and serves the customers in more than 200 countries. The seventy percentage of the revenue of the entity comes from outside the U.S.
Pepsico Inc.
The Pepsioc Inc. is considered as the one of the largest and leading food and beverage entity which is engaged in the manufacturing and distributing the products in around two hundred countries all over the world. The entity is engaged in the manufacturing of the following food products such as chips, snacks, cereals, rice, pasta and other dairy related products. The entity is engaged in the following beverage related products which are as soft drinks, ready to drink tea and coffee, sports drink and drinking water. The head office of the entity is situated in Purchase, New York. The entity is having around 274,000 employees working globally.
2. Ratio Analysis
The ratio analysis is the important tool for analyzing the financial condition of the entity using the different measurement criteria such as liquidity, solvency, profitability and efficiency. It also helps in comparing the result of the one entity with another entity in the same industry (O'Fa
ell, Renee. 2021).
Calculation of ratios of both the entities
    Ratios
    Formula
    Coca Cola Company
    Pepsico Inc.
    Â 
    Â 
    Calculation
    Result
    Calculation
    Result
    Liquidity Ratio
    Â 
    Â 
    Â 
    Â 
    Â 
    Cu
ent Ratio
    Cu
ent Asset
    30634
    1.05
    21893
    0.99
    Â 
    Cu
ent liabilities
    29223
    Â 
    22138
    Â 
    Â 
    Â 
    Â 
    Â 
    Â 
    Â 
    Profitability Ratio
    Â 
    Â 
    Â 
    Â 
    Â 
    Net Profit Margin
    Net Profit
    6434
    20%
    12515
    19%
    Â 
    Revenue
    31856
    Â 
    64661
    Â 
    Â 
    Â 
    Â 
    Â 
    Â 
    Â 
    Solvency Ratio
    Â 
    Â 
    Â 
    Â 
    Â 
    Debt-equity Ratio
    Debt
    64158
    3.37
    63046
    4.32
    Â 
    Equity
    19058
    Â 
    14602
    Â 
    Â 
    Â 
    Â 
    Â 
    Â 
    Â 
    Market Ratio
    Â 
    Â 
    Â 
    Â 
    Â 
    Earnings per share
    Net profit attributable to shareholders
    6434
    1.58
    12515
    8.84
    Â 
    Number of...
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