Financial Analysis Essay examples

1872 Words Nov 2nd, 2011 8 Pages
Financial Analysis
The purpose of my paper is to make financial comparisons between PepsiCo, Inc., and Coca Cola. I will be using Vertical and Horizontal analysis, and as Ration Analysis to form my opinion. PepsiCo, Inc. and Coca Cola have been a part of American life for so long that both companies are both taken for granted even though PepsiCo, Inc and Coca Cola are both internationally know the public does not know much about the history of the two corporate giants. Because I am doing a financial comparison of the two, I wanted to know a little history of each company.
Pepsi Cola and Coca Cola are two of the world’s best known cola distributers. They have both become strong in the international marketplace. A little knowledge about
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had total revenues at the end of 2004 and 2005 were $29,261, and $32,562 respectively, (the numbers represent millions). PepsiCo shows a gain of $3,301 in 2005, and using 2004 as the base year. The difference between 2005 minus 2004 total assets is a gain of $3,740, or 13.4% rise in total assets. The ratio used to compute is the percentage change in total assets, [($31,727 - $27,987)  $27.987] equals 0.1336, or 13.4% for PepsiCo, Inc. The difference between 2005 minus 2004 total liabilities is a gain of $3,012 or a 20.8% rise in total liabilities. The ratio used to compute is the percentage change in total liabilities is, [($17,476 - $14,464)  $14,464] equals 0.2082, or 20.8% for PepsiCo, Inc. The total revenues of Coca Cola for 2004 and 2005 were $23,104 and $21,742 respectively. Coca Cola shows a gain of $1,362 for the year, and to follow suit 2004 is the base year. The percentage change in total assets for Coca Cola, using the same formulas formats as for PepsiCo, Inc., is negative 6.4% change in 2005. The figures for this equation are [($29,427 - $31,441)  $31,441] equals -0.064 or negative 6.4%. The percentage change in total liabilities is negative 16%. The figures for this are [($13,072 - $15,506)  $15,506] equals -0.156 or negative 16% drop in liabilities.
Comparing the two companies I notice that total revenues PepsiCo had a larger increase in revenue from 2004 to 2005, and comparing the change since base period horizontal ratios are that PepsiCo,

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