Pepsi Financial Comparison Paper

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Coco Cola and PepsiCo. are the two largest companies in the non-alcoholic beverage industry. Coca-Cola focuses entirely on beverages, while PepsiCo sells both beverages and food products. Both companies supply much more than soda and have mature within the last decade at around 9% a year. As shown above, PepsiCo recently had a dividend yield of 2.45% in 2014 while Coca-Cola had a 1.78% dividend yield. Further, both companies' strong brand portfolios provide stable cash flows which in turn gives both stocks extremely low price volatility.
CoCo Cola sales decreased by 1.8% while net income also decreased by 17.3%. In addition there was a decline in cost of goods sold by 2.9% and increase in operating expenses by 32%. PepsiCo sales increased …show more content…
and Coco-Cola trend lines for key items in the financial statements over multiple time periods help to see how both company is performing. Revenues, the gross margin, net profits, cash, accounts receivable, and debt are known as the typical trend lines. As discussed, proportion analysis is an array of ratios available for discerning the relationship between the size of various accounts in the financial statements. This information can be used to calculate a company's quick ratio to estimate its ability to pay its immediate liabilities, or its debt to equity ratio to see if it has taken on too much debt. These analyses are frequently between the revenues and expenses listed on the income statement and the assets, liabilities, and equity accounts listed on the balance sheet. When a company burrow, investors or lenders is interested in its ability to pay back the debt, and so will focus on various cash flow measures such as investors. Comparability between companies frequently compares the financial ratios in order to see how PepsiCo and Coca-Cola match up against each other. From the research and analysis conducted, discovering that financial statement analysis is an exceptionally powerful tool for a variety of users of financial statements. Internal users use it for planning, evaluating and controlling company operations. While external users use it for assessing past performance and current financial position and making predictions about the future profitability and solvency of the company as well as evaluating the effectiveness of management. Both current and prospective investors examine financial statements to learn about a company's ability to continue issuing dividends, to generate cash flow and to continue growing at its historical rate. PepsiCo grew earnings-per-share faster than Coca-Cola in 2014. PepsiCo is projected to grow faster than Coca-Cola in 2015 as well. Additionally, PepsiCo has a lower price-to-earnings ratio than Coca-Cola.
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