Essays on Financial Comparison of Coca-Cola and Pepsi Case Study

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The paper "Financial Comparison of Coca-Cola and Pepsi" is a perfect example of a finance and accounting case study. The research paper aims to establish a financial comparison of the two companies. This report analyses two business establishments in the soft drink industry i. e. Coca Cola and Pepsi. The financial comparison of the two companies will be useful to various stakeholders like managers, investors, creditors, lenders, consumers and employees. With this in mind, I intend to do a comparison of the annual reports for the three years i. e. 2010, 2011 and 2012Coca Cola It is a multinational beverage company based in the United States.

The company was established in 1892 by Asa Candler. Its headquarters are based in Atlanta, in the United States. It sells products in over 200 countries in the world. The company sells beverages, concentrates on bottling operations and renowned brands in the world market. Its main top worldwide non-alcoholic drinks are Fanta, Coke, Sprite among others (Coca Cola Company 15). Pepsi is a multinational Non-alcoholic beverage company. The company was established in 1965 in 'New York'. The company manufactures a Pepsi drink, which is sold in retail stores, restaurants and vending machines.

The brand is sold in over 200 countries in the world. It sells Pepsi- Cola, Diet Pepsi and Mountain Dew which are the leading soft brands in the United States market (Pepsi Company 20). Current ratioIt is a liquidity ratio, which measures the ability of the company to pay short-term obligations (Bull and Richard 15). The current ratio of the Pepsi company decreases from 2010 to 2011 and then increases to 2012. The ratio deteriorated in 2010 than in 2011, but in2012 it improves well above 2010.

This indicates poor operating efficiency thus the company may be compromised in meeting short-term obligations in the near future. Pepsi company is more favorable than Coca-cola in meeting short term obligations. The low values of the current ratio are a critical problem in the operations of the company.  

Works Cited

Brigham, Eugene F and Louis C. Gapenski. Financial Management: Theory and Practice. Chicago: Dryden Press, 1988.

Bull and Richard. Financial Ratios: How to Use Financial Ratios to Maximise Value and Financial Ratios: How to Use Financial Ratios to Maximise Value and Success for Your Business. Amsterdam: Elsevier/CIMA , 2008.

Coca Cola Company . http://www.coca-colacompany.com/investors/annual-other-reports. n.d. 8 November 2013

Pepsi Company. http://www.pepsico.com/annual12/. n.d. 8 November 2013 .

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