Contents
Introduction 3
Section 1: Company Details 3
Brief History 4
The Coca-Cola Company 4
The Pepsi Company 4
Section 2: Business Activities 5
Product Tree 6
Section 3: Financial Analysis 7
Horizontal Analysis 7
Trend analysis 11
Vertical analysis 13
Ratio analysis 16
Profitability – Operating Margin 17
Liquidity – Current Ratio 17
Efficiency – Asset Turnover 18
Investment – P/E ratio 18
Section 4: Non-financial Analysis 19
Branches/offices worldwide 19
Number of employees 20
market share 21
R&D statistics 21
Section 5: Company Potential 22
Coca-Cola 22
Strengths 22
Weakness 22
Opportunities 23
Threats 23
PepsiCo 23
Strengths 23
Weakness 24
Opportunities 24
Threats 24
Section 6: Investor Potential 25
Section 7: Employee Potential 27
Section 8: Limitations of the analysis 29
Section 9: Conclusion 30
References 30
List of Figures
Figure 1:Coca-Cola product tree……………………………………………………...7.
Figure 2:PepsiCo product tree………………………………………………………..7
Figure 3: Net operating income trend……………………………………………….13
Figure 4: Net income trend…………………………………………………………..13
Figure 5 share price of Coca-Cola and PepsiCo on the NYSE………………………26
List of Figures
Table 1: Share of business activities…………………………………………………..6
Table 2: Horizontal analysis……………………………………………………………9
Table 3: Trend percentages……………………………………………………...12
Table 4: Vertical analysis(income statement)………………………………………...14
Table 5: Vertical Analysis (Balance Sheet)……………………………………..…...15.
Table 6 Operating Margin……………………………………………………………18
Table 7 Current Ratio………………………………………………………………..18.
Table 8 :Asset Turnover……………………………………………………………..19
Table 9 P/E ratio……………………………………………………………………19
Table 10 employees analysis…………………………………………………………21
Tables11 intangle assets……………………………………………………………..22
Table12:financial data for Coca-Cola and PepsiCo………………………………….27
Introduction
In this report, I will analyze the companies in same area of business and compare them, my analyze include financial analyze and Non-financial analyze, for the financial analyze, I will analyze the profit ability , short-term and long-term solvency, operation ability and so on; foe the Non-financial analyze, I will analyze the activities of the companies, products tree, employees, market share, .R&D statistics an so on. Actually except the financial analyze and Non-financial analyze, I also analyze the company potential, investor potential, employee potential. All of these analyze, I will compare with these two companies, at last I will have some conclusions.
In this report, I will choice two companies in the beverage industry, which name are The Coca-Cola Company and The Pepsi Company. The Coca-Cola Company is the largest manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the world. The Pepsi Company is the second largest manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the world. There are both the leading companies in the beverage industry, also they are both enter into the world top 500 companies.
The reason I choice two companies in the beverage industry is that I very like to analyze this industry, also I often concern this industry, It is hoped this will help better understand and analyze the companies and their performance. I will analyze these two companies, and compare these two companies on financial and non-financial information, then I will have some conclusions in this report.
Section 9: Conclusion
From the above analyze, I have some conclusions, firstly I find the Coca-Cola company is mainly in the beverage industries , while the PepsiCo company is mainly in the fast food and beverage industries, from 2006 to 2007 the net operating income of the Coca-Cola company is lower than the PepsiCo company , while the net income of the Coca-Cola company is greater than the P
