Analysis

Financial Analysis

Of Coca-Cola and PepsiCo. Inc.

Xacc 280

April 10, 2011

There are two competing companies that manufacture beverages that are much known throughout the world. They compete for the number one manufacturing and distributing spot for beverages worldwide. The two companies are PepsiCo and Coca-Cola. They have so thoroughly conquered the markets around the world that they enjoy universal recognition for their company and for their products. They both produce flavored water, regular water, and soft soda drinks. Coca-Cola and PepsiCo, Inc. target all income brackets as just about everyone worldwide drinks soda and love it. Both companies know how to advertise and distribute the products so that more and more people will buy them.

By reviewing the companies’ income statements and balance sheets and revealing the financial condition of the companies’ in relation to one another we will be able to decide which is the better of the two companies to invest in. After an introductory of both the companies, I will perform vertical and horizontal analyses from their annual report financial data and then will provide recommendations on each company.

There are a wide variety of distributors in these markets, but Coca-Cola and Pepsi have stayed number one and two for decades. They have reached far beyond their own borders in the U.S. to become a going concern in production and distribution worldwide. They have modeled practices that one another have followed in order that they could overcome any obstacles to worldwide manufacture and distributions. (The Coca-Cola Company, 2011). Both of these companies run worldwide operations and they compete globally with one another for customers. They produce very similar products and have designed distribution and services that are very similar. The companies both exclude the franchise model from their operations. (PepsiCo.com, 2011).

They both have dealt with global legal issues, precedents, politics and business...