Brief

analysis of two of the

biggest companies in order to
invest in one of them.

Coca Cola
vs. Pepsico

Miguel Francisco Amador Martinez

A01332908

Carlos Ortiz Daz

A01339805
FINANCIAL STATEMENT ANALYSIS
PROJECT
Mrs. Matilde Guadalupe Surez

Rosas

Coca Cola Co.

Coca Cola is a company dedicated to offer the world a variety of

beverage brands that anticipate and satisfy the desires and needs of
people.
The Company's portfolio is very nearly 70 brands such as; soft drinks ,
water with or without gas, milk , ready to drink tea , coffee, juices ,
sports drinks are some examples.
One of the biggest commitments is to promote Coca Cola movement in
more than 26 million people in more than 4000 sporting events that
have been organized. Coca Cola seeks to help people give a positive
message to all the values presented.
In here we present some financial ratios of the past two years (2013,
2012) of Coca Cola.

2013
2012

Current Ratio: Current Assets / Current Liabilities

$
31,304,000.00
Assets
$
27,811,000.00
Liabilities
$
30,328,000.00
Assets
$
27,821,000.00
Liabilities

$32,000,000.00

$30,000,000.00

1.090111786

Current Ra*o

$31,000,000.00

1.125597785

$31,304,000.00
$30,328,000.00

$29,000,000.00
$28,000,000.00

$27,821,000.00
27,811,000.00

$27,000,000.00
$26,000,000.00
Assets

LiabiliEes
2013

Quick Ratio: Assets/ Liabilities Current

2013

2012

Assets
Inventories
Liabilities
Assets
Inventories
Liabilities

31,304,000.00

3,277,000.00

27,811,000.00

30,328,000.00

3,264,000.00

27,821,000.00

1.007766711

0.972790338

Quick Ra*o
$0.90
$0.89

$0.89
$0.88
$0.87
$0.86
$0.86
$0.85
$0.84
$0.83
0.855123782

0.890972928

Interest coverage ratio: Operating income/ Taxes

Operating income
Taxes
Operating income
Taxes

2013
2012

10,228,000.00

463,000.00

10,779,000.00

397,000.00

22.09071274

Times:

22.1

27.1511335

Times:

27.2

Interes coverage ra*o

$12,000,000.00
$10,000,000.00

$8,000,000.00

$6,000,000.00

$4,000,000.00

$2,000,000.00

$-

OperaEng income

2013

2013

OperaEng income

2013

Taxes

Taxes
2012

Ratio of compression fracture

$
56,882,000.00
Total Liabilities
$
33,173,000.00
stockholders' e quity
$
53,384,000.00
Clients
$
32,790,000.00
stockholders'
e quity

1.714707744
1.628057335

Ra*o of compression fracture

$60,000,000.00

TTULO DEL EJE

$50,000,000.00
$40,000,000.00
2013

$30,000,000.00

2012
$20,000,000.00
$10,000,000.00
$-
53384000

32790000

Gross Margin: ((Gross profit)*Net sales))*100

$
28,433,000.00
Gross profit
$
18,205,000.00
Net sales
$
28,964,000.00
Gross profit
$
18,185,000.00
Net sales

2013
2012

156%
159%

Gross Margin

$35,000,000.00

$30,000,000.00

$25,000,000.00

$20,000,000.00

$15,000,000.00

$10,000,000.00

$5,000,000.00

$-
Gross prot

2013

Gross prot

2013

Net sales

2012

Net sales
2012

Margin of Operating i ncome: ( (Operating i ncome/Net sales))*100

$
10,228,000.00
Operating i ncome
$
18,205,000.00
Net sales
$
10,779,000.00
Operating i ncome
$
18,185,000.00
Net sales

56%
59%

Margin of opera*on income

$20,000,000.00

$18,000,000.00
$16,000,000.00
$14,000,000.00
$12,000,000.00
$10,000,000.00
$8,000,000.00
$6,000,000.00
$4,000,000.00
$2,000,000.00
$-
OperaEng income

Net sales
2013

OperaEng income

Net sales
2012


2013

2012

Margin of Net i ncome ((Net profit)*Net sales))*100

$
8,584,000.00
Net profit
$
18,205,000.00
Net sales
$
9,019,000.00
Net profit
$
18,185,000.00
Net sales

47%
50%

2013

2012

Rotation of Assets
Net sales
Total Assets
Net sales
Total Assets

18,205,000.00

90,055,000.00

18,185,000.00

86,174,000.00

0.202154239

Times:

0.2

0.211026528

Times:

0.2

ROI
2013
2012

Net profit
Stockholders e quity
Net profit
Stockholders e quity

8,584,000.00

33,173,000.00

9,019,000.00

32,790,000.00

26%
28%

Leverage ratios

2013

2012

Total Liabilities
Total Assets
Total Liabilities
Total Assets

56,882,000.00

90,055,000.00

53,384,000.00

86,174,000.00

0.631636222
0.619490798

Pepsico, Inc.

Pepsi is a company seeking to delight the consumer and be the leader

in delicious food and drinks and to be in line with consumer
preferences.
The company's portfolio includes 22 brands, which include Sabritas,
Sonrics, Gatorade, Gamesa, Quaker, Pepsi are some examples of the
portfolio of this company.
Like other companies Pepsico aims to provide more help to promote
values. The Pepsico stronger commitment is to promote healthy
lifestyle through its DNA Healthy Lives program also focuses on
protection of the environment, among others.

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We recomend to invest in Coca Cola because of all the information we

gather about the entity.
Both of these multinacional companies have made great investments
over the years, both offer solid growing dividend yields However, going
forward, I think one of these companies has the advabtage on the
other as an investment option.
Coke controls 42% of the total carbonated soft drink market, compared
with Pepsi's 30%, according to Beverage Digest.
So, with best financial information Coca Cola is the best option for a
long term investment.

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