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Analyzing financial statements: Coca-Cola vs Pepsi

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  1. Coca-Cola Corporate
    1. Company's overview
    2. Data and financial analysis
    3. Ratios analysis
    4. Comments about ratios and strategy adopted
  2. Pepsi-Cola Corporate
    1. Company's overview
    2. Data and financial analysis
    3. Ratios analysis
    4. Comments about ratios and strategy adopted
  3. Comparative strategic analysis
  4. Recommendations
    1. As an investor
    2. As a bank

Coca-Cola and PepsiCo have been world leaders of the soft drinks market for more than 100 years. Coca-Cola brand has been created by John Pemberton in 1886 in Atlanta. The Pepsi-Cola brand has been created in 1898 by Caleb D. Bradham. Thanks to their strong reputation and the infatuation of their customers, their sales have dramatically increased and lead them to be at the forefront of the scene. Since their creation, these two giants of the industry are involved in a constant business war. They have made their presence felt in the whole world, thanks to a strategy adapted to different cultures. Enabled by an increase in sponsorships and several horizontal acquisitions, they have acquired a major place into their consumer's habits. Coca Cola Company is the first supplier of carbonated soft drink without alcohol in the world and it is also one of the biggest companies in the world. The firm currently employs 90,500 persons and has 71,000 associates all around the world.

Tags: Coca Cola vs Pepsi sales, Coca Cola vs Pepsi market share, Coca Cola vs Pepsi analysis, Pepsico vs Coca Cola

[...] Ratio analysis If we want to easily understand the financial situation of the Pepsi-Cola company, we will provide a general financial data of the company over 5 years as following: Part of each division in the net revenue over five years We can see that, thanks to this table, the structure of the PepsiCo revenue has changed when compared to Coca-cola, which comes from the demand and the strategy adopted by the group. In fact, in 2003, PepsiCo had mainly focused on the North American market, which was the ?easy market' (or mother market). [...]


[...] Thus, indicators about the financial market of the company have fallen. Therefore, I am going to show you the graph, to define precisely the Coca-cola share values. Thanks to the graph, we see that the share value of Coca-Cola in the New-York Stock Exchange has known a strong decrease passing from more than $65 in January 2008 to less than $42 in October 2008 which represents a big drop. Ratio analysis If we want to understand more easily the financial situation of the Coca- Cola Company, we will provide a general financials data over 5 years as following: However, we must notice that the long-term debt had boomed from $2,550 million in 2006 to $4,203 million in 2007. [...]


[...] We can add, in comparison with the Coca-Cola company that this seems to be poor (more than 4 point higher for Coca). The profitability of PepsiCo is not enough when compared to Coca-Cola. Then, we can see the return on total assets. In general a return of 12% is considered as correct and a return of 16% as good. In the table, we notice that the return is more around or higher than 16% than 12%. Thus, we can conclude that the return on total assets is pretty good and that PepsiCo effectively uses its assets. [...]

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