Coca Cola and Pepsi Case

The basic role of this report is to analyze the financial statements of Coca-cola and PepsiCo, soft drink sector competing companies, this would at the end of the analysis be able to provide vital information on determining the denominator in the soft drinks industry. The two companies have a big slice of the global market in in the industry for over a century now. I will therefore engage comparison in the financial statements of the two companies considering the key ratios, a comparative statistics and figures significantly affecting probability the key methods of analysis are both horizontal and vertical analysis.

epsiCo, Inc. is a company that has been listed in the New York stock exchange as PEP. It was created as a merger between Pepsi-cola and Frito-Lay in 1945. It has also been listed in the fortune magazine as one of the five hundred companies that are doing well in the business field. It is centrally located in Purchase, New York. It is concerned in making, selling, and distributing snacks that are grain based, beverages that are either carbonated or non-carbonated. It is a company that has shown significant growth with ability to merge with other companies like Quaker Oats (2001) which has helped it to grow and to stabilize in the market. As per a recent report, PepsiCo has extended its services to over two hundred countries in the whole world. When classified on the basis of revenue generation, this company has been rated as the second in the line of food and beverages manufacturing company, in North America being the best. This company has been seen to employ over 285,000 people in the whole world at the present. In order to analyze the financial status of this company we must first understand that the company operates in four major fields. These fields include: PepsiCo Americas Beverages, PepsiCo Americas Foods, based in America PepsiCo Europe, and PepsiCo Asia, Middle East and Africa. Most of its revenue has been seen to be from its four major operating regions.

Coca Cola Company on the other hand has been listed in the New York stock exchange as KO; it is company that can be classified as a retailer, maker and marketer of beverages that are non alcoholic. It is located in Atlanta, Georgia. It is renown by one of its product brand: coca cola invented back in 1886 by Pemberton who was a pharmacist. It has also undergone some mergers in order to arrive at its current state. Like in the case of Asa Candler in 1892, it also offers over five hundred brands other than the Coca Cola one. It is known as the country which serves many servings in the whole world. It serves over 1600000 servings in just a single day. It covers approximately two hundred countries................