Financial Results over Three Year Period
The company’s financial result is the difference between earnings before interest and taxes, and it determines by the earnings or the loss that results from financial affairs. PepsiCo has higher gross profit from 2011 to 2013; however, Coca-Cola has higher operating profit and net income from 2011 to 2013.
Coca-Cola 2013 2012 2011 PepsiCo 2013 2012 2011
Gross profit 28,433 28,964 28,327 Gross profit 35,172 34,201 34,911
Operating profit 10,228 10,779 10,173 Operating profit 9,705 9,112 9,633
Net Income 8,626 9,086 8,646 Net Income 6,787 6,214 6,463
The Balance Sheets
The most American Companies use either account format or the report format, and the actual line items appearing in the formats are …show more content…
In a company’s capital structure, equity consists of a company’s common stock and retained earnings that are summed up in the shareholder’s equity account on a balance sheet (Loth, 2015). The total current liability of Coca-Cola is $ 27,811 and its long term debt is $ 19,154 and other liabilities are $ 3,498. However, PepsiCo has total liability of $53,089, which is higher than Coco-Cola’s total liability, and it is higher than the total equity, which is $24,389. Therefore, PepsiCo has high level of debt and low level of equity, and it is not a positive sign on investment …show more content…
Net account receivables refers to the net amount of money remaining after deducting the provision for bad debt, and it used in businesses that sell on credit. Coca-Cola shows that the company has 2 percent increase in account receivables in 2013; in comparison, PepsiCo has -1 percent decrease in their account receivables.
$ in Billions 2013 2012 Difference %
Coca-Cola 4,873 4,759 144 2%
PepsiCo 6,954 7,041 -84 -1% Total Assets Invested in Inventory
Coca-Cola has total inventory of $ 3,277 and its total asset is $ 90,055.Therefore, it shows 3.63 percent of inventory to total assets for Coca-Cola, and PepsiCo has 4.03 percent of inventory to its total assets. Maintaining the right amount of inventory is an important part of managing the company’s business resources and its cash flows. If there is too much inventory, it takes up valuable resources and cash flows that cannot be used for other purposes; on the other hand, too little inventory may not be enough to meet customer’s demand.
$ in Billions Total Inventory Total Assets Difference % *100
Coca-Cola 3,277 90,055 86,778 0.0363 3.63
PepsiCo 31,243 77,478 46,235 0.04032 4.03
The Inventory Costing
The company’s financial result is the difference between earnings before interest and taxes, and it determines by the earnings or the loss that results from financial affairs. PepsiCo has higher gross profit from 2011 to 2013; however, Coca-Cola has higher operating profit and net income from 2011 to 2013.
Coca-Cola 2013 2012 2011 PepsiCo 2013 2012 2011
Gross profit 28,433 28,964 28,327 Gross profit 35,172 34,201 34,911
Operating profit 10,228 10,779 10,173 Operating profit 9,705 9,112 9,633
Net Income 8,626 9,086 8,646 Net Income 6,787 6,214 6,463
The Balance Sheets
The most American Companies use either account format or the report format, and the actual line items appearing in the formats are …show more content…
In a company’s capital structure, equity consists of a company’s common stock and retained earnings that are summed up in the shareholder’s equity account on a balance sheet (Loth, 2015). The total current liability of Coca-Cola is $ 27,811 and its long term debt is $ 19,154 and other liabilities are $ 3,498. However, PepsiCo has total liability of $53,089, which is higher than Coco-Cola’s total liability, and it is higher than the total equity, which is $24,389. Therefore, PepsiCo has high level of debt and low level of equity, and it is not a positive sign on investment …show more content…
Net account receivables refers to the net amount of money remaining after deducting the provision for bad debt, and it used in businesses that sell on credit. Coca-Cola shows that the company has 2 percent increase in account receivables in 2013; in comparison, PepsiCo has -1 percent decrease in their account receivables.
$ in Billions 2013 2012 Difference %
Coca-Cola 4,873 4,759 144 2%
PepsiCo 6,954 7,041 -84 -1% Total Assets Invested in Inventory
Coca-Cola has total inventory of $ 3,277 and its total asset is $ 90,055.Therefore, it shows 3.63 percent of inventory to total assets for Coca-Cola, and PepsiCo has 4.03 percent of inventory to its total assets. Maintaining the right amount of inventory is an important part of managing the company’s business resources and its cash flows. If there is too much inventory, it takes up valuable resources and cash flows that cannot be used for other purposes; on the other hand, too little inventory may not be enough to meet customer’s demand.
$ in Billions Total Inventory Total Assets Difference % *100
Coca-Cola 3,277 90,055 86,778 0.0363 3.63
PepsiCo 31,243 77,478 46,235 0.04032 4.03
The Inventory Costing