Quick ratio indicates the short term liquidity position of the company. The quick ratio indicates the company’s ability to meet its short term liabilities with its most liquid assets (Pech, et al., 2015). For assessing the availability of most liquid current assets to pay off current liabilities, the inventory is excluded while computing it. From the above table, it is indicated that in 2013 coca cola had 1.007 of liquid assets available to satisfy its 1 dollar of current liability. In comparison to previous year the liquid assets against single dollar of current liabilities is reduced and in 2014 it is 0.9231 which indicates that now for paying off one dollar of liability, coca cola has less than 1 dollar to pay out its short term liabilities. i.e., its liquid assets have reduced from 2013.
The quick ratio of coca cola and is competitor is almost the same. The PepsiCo has quick ratio of 0.968and coca cola has quick ratio of 0.923. It means that both PepsiCo and Coca cola have less than one dollar of liquid assets to pay of 1 dollar of its liabilities.
Net Asset Turnover
Net Asset Turnover
Formula Sales Revenue / Capital Employed
Company Coca cola PepsiCo
Year 2013 2014 2014
Sales Revenue 46,854 45,998 66,683
Capital Employed 62244 59649 52,417
Net Asset Turnover 0.75 0.77 1.27
It also indicates that how much cash flow the company is getting for investing each dollar in equity position. From the above table it is indicated that the dividend yield is almost same for both the years i.e. 0.027 and 0.028. It means that for both the years the investors will be equally interested in investing making investment into coca cola. From the above table it is also observed that the dividend yield for coca cola and PepsiCo is almost the same which means that the investors will be equally interested in making investments in both
Suppliers are mostly concerned with a company 's ability to pay on their liabilities. Therefore, the current ratio and the quick ratio are both looked at by suppliers. The current ratio takes a company’s current assets and divides that by the company’s current liabilities. This number is
“… if you don’t measure something, you can’t manage it. And if we’re failing to measure how well we’re doing with our most important assets we’re probably not managing them very well,” (Kaplan, 2011, 1:48).
Quick Ratio – Constant grow for the last three years. From 3.56 in 2001 to 3.76 in 2002 to 4.17 in 2003. The reason of grow is constant increase in Current Assets.
History of Coca-Cola started in 1886 when the interest of an Atlanta drug specialist, Dr. John S. Pemberton, drove him to make an unmistakable tasting soda that could be sold at pop wellsprings. He made an enhanced syrup, took it to his neighbourhood drug store, where it was blended with carbonated water and regarded "amazing" by the individuals who tested it. Dr. Pemberton's accomplice and accountant, Straightforward M. Robinson, is credited with naming the drink "Coca‑Cola" and in addition planning the trademarked, particular script, still utilized today.
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.
Yahoo Finance (n.d.). KO Historical Prices | Coca-Cola Company (The) Common Stock - Yahoo! Finance. Retrieved February 26, 2014, from http://finance.yahoo.com/q/hp?s=KO&a=11&b=24&c=2012&d=00&e=4&f=2013&g=d
In regards to the corporation’s balance sheet, it is necessary to place an importance on liquidity ratios to demonstrate the company’s ability to pay its short term obligations such as accounts payable and notes that have a duration of less than one year. These commonly used liquidity ratios include the current ratio, quick ratio, and cash ratio. All three ratios are used to measure the liquidity of a company or business. The current ratio is used to indicate a business’s ability to meet maturing obligations. The quick ratio is used to indicate the company’s ability to pay off debt. Finally the cash ratio is used to measure the amount of capital as well short term counterparts a business has over its current liabilities.
The Quick Ratio shows that the company’s cash and cash equivalents are the highest t...
you can have a turn on the fortune wheel to win prizes such as Pepsi
The Coca-Cola company was founded in 1886 by John Pemberton, a Civil War veteran and Atlanta pharmacist. He was inspired by his curiosity as he stirred up a fragrant, caramel-colored liquid that he brought down to a place called Jacobs’ Pharmacy. There he added carbonated water and let several customers sample the new concoction. Jacobs’ Pharmacy put it on sale for five cents a glass and named it Coca-Cola. This “inspired curiosity” has now grown to be the world’s leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups. In 1906 Coca-Cola opened bottling plants in Canada, Cuba, and Panama. Today they produce nearly 400 brands in over 200 countries. More than 70% of their income comes from outside the U.S. (1). This paper will focus on an analysis of operations of the statement of cash flow reports and a vertical and horizontal analysis of the consolidated balance sheets. Also an analysis of the global financial condition of the Coca-Cola Company and the value of goodwill and other intangible assets will be discussed.
PepsiCo is one of the most recognized names in the snack and beverage industry, with brands like Frito-lay, Gatorade, Tropicana, and Quaker, however, it is best known for its flagship soft drink brand - Pepsi and its rivalry with Coca-Cola. To begin, PepsiCo first caught my Interest in the way it manages its business and markets its products. PepsiCo being a relatively young company compared to its rival Coke, has proven to be a formidable opponent going “head to head” with one of the biggest companies in the world (Coca-Cola). Now, when I notice PepsiCo’s growth, the first thing that came to my mind was that it is thanks to its great marketing campaigns, that Pepsi has grown to become the globally recognized brand that it is today. I also admire PepsiCo because I think the there is a high level of entrepreneurship in the way they acquired smaller brands like Gatorade thereby eliminating their competition before they become competition.
Coke and Pepsi have been raging war for over a century now, turning their sodas into a multi-billion-dollar industry. Coke has been able to drive more earnings for its bottom line, and while Coke’s net income has been trending downward in recent years, it manages to stay ahead thanks to superior margins. Pepsi, on the other hand, has produced consistent net profit margins of around 10%, while Coke margins have been in the 15-18% range for the past several years (O’Brien). Every company has a Market Cap, which is basically a fancy way of saying how much the company is worth, and Coca-Cola’s market cap is a whopping $180 billion. Pepsi’s Market Cap is $150 billion, which may not seem like a big difference, but $30 billion is a lot of cheddar. Therefore, Coca-Cola owns 51% of the soft drink market, whereas Pepsi only owns 22% of it. Coke claims to own a total of 35 different brands, including Fanta, Sprite, Powerade, Vitaminwater, and many others. Pepsi owns 22 different brands, including 7up, Gatorade, and Mountain Dew “Coke (Coca-Cola) vs Pepsi - Soda
Control of market share is the key issue in this case study. The situation is both Coke and Pepsi are trying to gain market share in this beverage market, which is valued at over $30 billion a year. Just how is this done in such a competitive market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share.
...istent increase of up to 19% while Coca Cola's dividend growth rate has increased, but only at an average of about 11%. Another factor in which I, as an investor, would consider would be the ROE or return on equity. This is determined by net income dividend by the average common stock holders equity. In 2005, Coca Colas ROE was at 28%, while Pepsi Co's was also at 28%. But a review of a 10 year period(dividendgrowthinvestors.com) reveals that Pepsi Co. has been strong between 28 to 34%, while Coca Cola has been around 25 to 33%. That fact that Pepsi Co. has steadily outperformed Coca Cola on the rate of returns to its investors confirms my decision to lean towards Pepsi Co. Don't be misinformed, both companies are strong performers and lead their industry in most every category. I recommend any potential investor to do the math and research for themselves.
The current ratio and quick ratios for the year 2003 are at 2.5 and 1.3, which are both higher than the industry average. The company has enough to cover short term bills and expenses. Both the current and quick ratios are showing an upward trend compared to 2001 and 2002. The current assets decreased by $ 20,264 to $ 1,531,181 and the current liabilities also decreased considerably by $255,402 to $616,000, a 29.3% decline, thus making the current ratio jump to a 2.5. The biggest decline was seen is accounts payable which decreased by $170,500 to $230,000, a decline of 42.6 %.