Financial Management Bus 508

Financial Management

BUS 508

Dr. Kim Anthony

Businesses can be defined as all profit seeking activities and enterprises that provide goods and services necessary to an economic system. (Boone 2010) These businesses comprise of corporations, companies, manufacturing industries, etc. This is what pushes and define the economic status of the United States and throughout the world. In the era of technology, many new inventions and new ways of communication are being presented. Every new product that is introduced to the world is indeed a great milestone. This assignment will take a look at two of the biggest companies in the Fortune 500. They are Pepsi Cola and Coca Cola.

Pepsi Cola and Coca Cola are longtime rivals in the soft drink industry. Both companies offer a host of products to include pastries, snacks, and chips to their customers. One of the major goals of any company or corporation is to gain market share and increase profits while lowering production and utility costs. This assignment will take a look at the financial perspective rather than the drink preference. The most recent annual reports will be used to decide which company has a bigger market share and the company many people should invest in.

What are ratios in Financial Management? Financial Ratios can be interpreted as valuable and easy ways to interpret information found in financial statements. Financial Ratios allow potential investors, stockholders, and consumers an in-depth look at the growth of the company, its debt, and future success. According to investopedia the current ratio is a popular used to test a company’s liquidity. Liquidity is closely identified with the companys working capital or a “company’s efficiency and its short term financial health.(www.investopedia.com) This ration is calculated by dividing current assets by current liabilities.

Title | Pepsico | Coca Cola |

Current Assets(in millions) | 12,571 | 5,170 |

Current Liabilities (in millions) |...