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Financial Analysis of Pepsi Co, Inc. and The Coca-Cola Companies Essay

Assignment id 1015123
Discipline Other
Assignment type Essay
Words 2359
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Performing a financial analysis of a business permits an lender or investor to totally comprehend the make-up of that specific firm. For Pepsi Co, Inc. and The Coca-Cola Companies the under vertical and horizontal evaluation along with chosen ratios supply details on each firm to permit comparison between them. Pepsi Co, Inc. reveals a whole lot of assets and property ownership while The Coca-Cola Businesses net revenue is reduced their net earnings is greater. The Pepsi Co, Inc. has more assets than the Coca-Cola Company, but a lot of their resources are owned by lenders. Short-term, Pepsi Co, Inc. has a greater liquidity compared to Coca-Cola Businesses, but their long-term solvency is reduced. These differences, although many are slight, would make the difference between investing as an individual or as a creditor. Each investor would have to carefully evaluate their own strategy compared to that of the company’s to ensure they were similar. A thorough evaluation of strategy against horizontal and vertical analysis of each company with subsequent ratios would result in a successful partnership for the investor, be it a retail stock owner or a creditor. The purpose of this paper is to provide data and analysis of PepsiCo, Inc. and The Coca-Cola Companies financial statements so that a potential investor can make an educated decision about where to place their money. The paper shows a vertical analysis of each company’s consolidated balance sheet, a horizontal analysis of their consolidated statement of income ratios showing solvency, liquidity and profitability. Vertical Analysis Vertical analysis presents an opportunity to evaluate a company’s make-up and reveals information about its year-to-year changes by comparing each lin...

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