1) Below are the ratios (with excel formulas) calculated for Pepsi-Co, Inc. for you – all you need to do is calculate the Coca-Cola Company ratios.
1. Using the financial data for the three years for The Coca-Cola Company discuss the company’s:
a. Ability to pay current liabilities;
b. Ability to sell inventory and collect receivables;
c. Ability to pay long-term debt; and
d. Profitability.
2. Using the financial data for the three years for PepsiCo, Inc., discuss the company’s
a. Ability to pay current liabilities;
b. Ability to sell inventory and collect receivables;
c. Ability to pay long-term debt; and
d. Profitability.
3. Compare Coca-Cola’s financial position to PepsiCo’s financial position throughout the three
years given. How do the two companies compare in the following areas?
a. Ability to pay current liabilities;
b. Ability to sell inventory and collect receivables;
c. Ability to pay long-term debt; and
d. Profitability.
4. What conclusions can you draw from your analysis of the two companies? Which company do
you think is in a stronger financial position?