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Financial analysis of Coca-Cola and PepsiCo
Financial analysis of Coca-Cola and PepsiCo
Analysis of coca cola company
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Recommended: Financial analysis of Coca-Cola and PepsiCo
COMMON STOCKS
Personal Finance
Stock Chosen: The Coca Cola Company
Stock Symbol: KO
Last Trade Price: $43.02
1. Chart: The Basic Chart page includes information pertaining to the past 52 weeks, splits, basic stock information and the option to compare the stock with other stocks. It basically shows the "now" and "then" information of the stock. There is also a technical analysis hotlink that allows a person to see different aspects of the stock including moving average, range from one day to the day the company came to the market and volume. This information is helpful to the technical analyst.
2. Financials: The financials hotlinks include the income statement for the company, balance sheet and cash flow. The income statement shows total revenue, any losses the company may have, operating income and net income. The balance sheet shows assets, liabilities and stockholder equity. The cash flow worksheet shows how the company spends their money. This information is helpful for anyone looking into buying stock in the company. It shows how well a company is doing financially.
3. Historical Prices: This section does just what the title says; it gives the historical prices of the stock for a specified time. This section goes all the way back to the beginning of the stock and gives an overall view of how the stock has done throughout the years. This data is useful for carrying out regression analysis etc. for the purpose of calculating beta and other technical analysis.
4. Industry: This section is a look into how the company compares to the overall industry they are grouped in. It also contains news on different companies in the industry as well as the option to view the different companies. This information is useful when trying to decide between two companies of the same industry.
5. Insider Transactions: This section is dedicated to stock purchases by people within the company over the past six months. There is also a section that breaks down the individual transactions for the past two years. This information shows how much a company's own people believe or do not believe in their own company.
6. Profile: This is the business summary. It includes an overall summary of the company and what they do, who the chief players are and what sectors they are attached to. This information is important to anyone wanting to know more about the company.
The stock price is currently 103.31, down from a recent high of 121.50. The P/E ratio is declining at 28 and beta at .67, which is expected to grow closer to 1.0. A recent earnings surprise last December yielded a 15% difference from the lower expectations and the latest earnings reports late last month also surprised investors. Estimates for the 2000 fiscal year are being raised by a large majority of analyst who believe that earnings per share will increase and the stock price will reach close to 150.
The first financial ratio of the analysis is the Price to Earnings ratio (“P/E ratio”). The ratio is computed by dividing the price of one share of common stock, by the earnings per share of common stock. This analysis uses diluted earnings per share which assumes the issuance of new stock for all existing stock options. Also, the price of the stock was computed as an average of the fourth quarter high and low stock prices published in the 10K report of each company, because the year end stock prices were not listed for all the companies. Because the P/E ratio measures the relative costliness of different stocks, in relation to their income, it provides a useful place to begin the analysis.
In this financial analysis report, I will compare and contrast these two companies¡¦ finance based on their annual report and related websites. There are four parts in this report. It includes Financial Ratios, WACC, Working Capital and Dividend policy.
The annual report or 10-K of a company is a useful source of information for many agents outside of the corporation. Shareholder’s can view the contents of an annual report to get a more comprehensive idea of what the company is built upon. Additionally, annual reports show a company’s progress over the past financial periods and give a detailed breakdown of company investing and operations. The 10-K and all related documents are easily accessible on a company’s website for the public to view. i
After conducting a basic 10 year financial analysis of the company, it has become evident that even with a highly competitive market structure they are able to improve on their performance. Ranging from 2004 to 2013 financial information, the company has shown a significant increase in their sales revenue roughly $3865 million sales in 2004 to almost four time that valuing $12970 million in 2013, which was an “increase of 10.4% over the 53 week prior year” The company’s growth strategy has been to diversify its product market and make them...
Mutual-fund managers generally rely on some variation of the two classic schools of stock analysis: fundamental and technical. Fundamental analysis relies on information such as economic supply and demand, and the company's financial health. These investors use information such as annual growth rate, earnings records, and key ratios to make decisions and focus on consistent, steady growth. Alternatively, technical analysis focuses more on the study of timing, price fluxuation, and investor sentiment. A common method of technical analysis is the usage of a chart of the stock’s price history to predict market sentiment and stock price trends.
The report will give an overview of each company, an explanation of what type of companies we are analyzing, the purpose of each company in terms of its goals and objectives, the products and services each company produces, and what future prospects we see these companies having. The reader should gain an understanding of each company as well. We also analyze the type of industry these companies are competing in. This will help us understand where each company fits in the marketplace. This is important because it places the two companies into a broader picture. The most important part of the financial report is the financial statement analysis. In this, the annual report of each company was analyzed. It studies the firms’ past earnings to understand their operating performances. It also forecasts future profitability and risk (short-term and long term). The financial statements give information on how these risks affect expected return. In the end, the reader will have an understanding of the two companies, the industry in which they operate, its financial standing in the past and present, and future profitability.
Searching about the company will help you in order to answer the interview questions. As well as it will help you ask some questions that may emphasize your position or your chance to be one the company’s employers.
Analysis of the Coca-Cola Company The Coca-Cola Company is the world's leading manufacturer, marketer and distributor of soft-drink concentrates and syrups. The Coca-Cola Company is the world's leading manufacturer, marketer and distributor of soft-drink concentrates and syrups. The Company markets many of the world's top soft drink brands, including Coca-Cola, Diet Coke, Sprite and Fanta. Through the world's largest and most pervasive distribution system, consumers in nearly 200 countries enjoy the Company's products at a rate of more than one billion serving a day.
When looking at the financial status of PepsiCo, Inc. and Coca-Cola, every dollar amount in every column has some significance. To find out what these amounts represent a financial comparison of both companies is required. Using financial analysis tools such as vertical analysis, horizontal analysis, and ratio analysis, one can get a clearer picture of the financial status of each company.
In respect to Google Inc. (GOOG) and Yahoo! Inc. (YHOO), I will use the financial statements for the most recent fiscal year filed with the SEC and for earlier periods. This information will be obtained by utilizing the value line which is available in the Stafford Library but I will use Yahoo Finance. In addition, they can also be found on the company websites. For assisting myself in future projects that will require my recommendations, I will briefly describe what they mean to me. This is an important process of understanding financial management whereas it is important to understand the various ratios and financials by examining and detailing and contrasting the information.
It outlines the interconnection of a company’s financial and non-financial elements and aims to combine them and show value creation and maintenance. It identifies resources and their effective and responsible usage. It intends to create a dialogue between the shareholders and other stakeholders and provides them with detailed information.
All financial information and notes are used to asses a company’s health and predict what the coming year may hold. The information found on the financials contains a large amount of information and once one understands how to interpret it then one has a visual of the company’s health.
It is used to measure the position of a firm in relation to its relative market share as well as its market growth. Based on this the situation where in all of the given four divisions of the firm are at different levels of performance can be evaluated in order to formulate a 5 year strategy plan. This can help in the creation of a portfolio where in returns are optimized by re investing in growth oriented sectors and divesting out of the sectors that are saturated and loss making for the firm.
Performing a financial analysis of a company allows an investor or creditor to fully understand the make-up of that particular company. For Pepsi Co, Inc. and The Coca-Cola Companies the below vertical and horizontal analysis along with selected ratios provide details on each company to allow comparison between them.