This activity is based on an overall objective which is to help executives determine decisions about financing their specific aims are: Understand the elements of the Analysis-
Describe some steps to consider for making decisions and help in planning the direction of investments.
.-Use common reasons for testing the activity of liquidity and accounts payable .. - Analyze the relationship between debt -Evaluate the profitability of the company for its sales .
- Determine the status of the company in the competitive market .
-Provide employees with information on the status of such effects on the business.
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The difference between this year cash flow and debt is now the company has, which is not much, but it has done to increase income and of course, the debt. The two companies are more than 4 times, so it is not low-priced compared to book value. I must say they are 2 large companies, since they have stable and highs income every year, but here Pepsi is a little higher, which has a higher average and is at the expense of a better "Total asset turnover " but will not much difference between the two, especially because the margins of Coke. Finally we have net margins. Coca Cola with almost double margin. This is a good indication to see that the company has a competitive advantage. Sales ratio shows the ability of the company shows sales and cash flow against higher the better. As can be seen by Coca cash flow shows more Pepsi sales. Division between net income and I demand rate greater than 1. As you can see Coke wins hands. Finally we have the means growth in free cash flow in periods of 2 and 5 years.
Coca-Cola is indeed a healthier company to invest in. From 2003-2005, Coca-Cola showed a consistent gain in net profits.
In 2004 Coca Cola had a decrease in liabilities from $11, 133 to $9,836 in 2005 which shows that