Coco Cola Vs Pepsi Research Paper

1667 Words 7 Pages
Coco-Cola and Pepsi are the world’s largest beverage company. Although both the companies are known in the market presence for a huge number of products starting from Non- Alcoholic Beverages , Sparkling water , water , juices , and Juice Drinks , ready to drink tea’s and coffee ,sports drink & Snacks.
We will deep dive into their Product line of each of these companies.
Primary Product Line
Coco-Cola Pepsi Co
Non Alcoholic Beverage Snacks
Water Global Beverages
Beverages Global Nutrition
Enhanced water
Juices
Juice drinks ready to drink tea and coffee
Energy and Sport Drinks

Based on the primary product line Coco-Cola Company owns and markets the top four of the five nonalcoholic sparkling beverage brands: Coco-Cola, Diet Coke,
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Inventory Turnover = Cost of Goods Sold / Inventory Coco cola Pepsi
Cost of Goods sold $18216 M $31593 M
Inventory $3092 M $3827 M 5.891332471 8.255291351 Inventory Turnover
Coco cola 5.89
Pepsi 9.25

Inventory turnover ratio is a ratio calculated to check how many times the inventory was sold and replenished over a period of time. Pepsi has 9.25 over Coco-cola which has 5.89 as the inventory turnover. Pepsi has sold more inventory than coco-cola.

Day Sales Inventory Ratio of Coco-Cola vs Pepsi co.
Day Sales Inventory: 365/ Inventory turnover ratio Coco cola Pepsi
Annual 365 365
Inventory Turnover ratio 5.89 8.25 61.96943973 44.24242424
Rounded Value 62 Days 44 Days Day Sales Inventory
Coco cola 62
Pepsi 44

This is used to calculate the days it takes to sell the inventory in hand. Pepsi takes 44 days to sell its inventory, While Coco-Cola takes 62 days. This indicates that Pepsi has a higher potential in converting its inventory to sales.

Profit Margin on sales Ratio of Coco-Cola vs Pepsi co.
Sales = Net Income / Sales Coco cola Pepsi
Net Income $8572 M $6462 M
Sales $46452 M $66504 M 0.184534573 0.097167088 18.45% 9.71% Profit Margin on

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