Analyzing Financial Statements

Résumé du document

The groups Coca Cola Company and Pepsi Co are both major actors in the sector of soft drinks. The profitability of this industry is always present, in spite of a slight decline which we have seen since the beginning of the 21th century, with the consumption more and more important of non bubbly drinks. Several reasons can explain this phenomenon. During the last thirty years, the consumption of fizzy drinks unceasingly increased, at about 3% on an average per annum. In the United States, it is approximately 230 liters per annum, which is considerably huge and that perhaps explains why some companies continue to be successful. The Coca Cola Company is undoubtedly the uncontested and undeniable number one on the market of the soft drinks. With a little less than 30 billion dollars of turnover in 2007, the group has a whole heap of brands (approximately 400 marks) which are sold everywhere in the world. Coca Cola Company does not have other spheres of activities, like fast-food industry. We will examine its functioning and look beyond the numbers in this document.

Extraits

[...] - The rest: it concerns BNP Paribas Arbitrage SA, which has 1,32 million Data REVENUES BY COMPANIES We can see on the chart below the difference between the revenues of the companies. In fact, it is undeniable that Pepsi Co. has revenues more important than Coca Cola, because they have brands more important. Concerning Pepsi, some brands knew an important success in 2007 : in the UK, Baked Walkers was named “Product of the 7UP was the most important increase in terms of volume and value in Brazil, sales of Pepsi Co. [...]

[...] Analyzing Financial Statements Table of contents Introduction 1. Overview of the 2 companies 1. Coca Cola 1. History and main activities 2. Human resources 3. Shareholders 2. Pepsi Co History and main activities 2. Human resources 3. Shareholders 2. Data 1. [...]

[...] in Russia stand at 1 billion. About Coca Cola, they knew an increase less than pepsi because of the strong pricing growth in North America (due to an increase of cost of sales), favorable currency exchange rate. Evolution of the income in % Conclusion These two companies know an important success. They are both innovative in terms of products; as a consequence, they adapt their products to new consumer's habits. Some aspects of Pepsi are very good: they have diversified their activities because of the maturity of the Western market and the new trend of water. [...]

[...] Moreover, I would like to underline an important fact. The group PepsiCo has certain brands in the United States which it does not have with the international one, and conversely. For example, 7up does not belong to Pepsi Co in the United States. On the other hand, in the other countries, it is a subsidiary company with whole share Human resources Concerning the Human Resources, they have employees all around the world. In 2007, the global number of employees stands at 185,000 employees. [...]

[...] Annual Report 2005 Pepsi Co. Annual Report 2003 Pepsi Co. www.coca-cola-entreprise.fr/ www.pepsico.com/ www.web-libre.org/dossiers/pepsi,1792.html www.boursorama.com Appendixes Justifications about the calculation Liquidity Current ratio = Current assets / Current liabilities Quick ratio = (Current assets Inventory) / Current liabilities Activity Inventory turnover = Cost of goods sold / Inventory Asset turnover = Sales / Total assets Leverage Debt ratio = total debt (short term and long term) / total assets Times interest earned (TIE) = EBIT (or operating income)/ Interest expense Profitability ROE = (net income / equity)*100 Net profit margin = (net income / sales)*100 Market P/E ratio = stock price / EPS DPS = wrote in the annual report EPS = net income / number of outstanding shares Market to book ratio = stock price / book value per share Book value per share = common equity (in the balance sheet) / number of outstanding share Dividend yield = wrote in the annual report PEPSI CO. [...]