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Financial Measure Pepsi Co and Coca-Cola




Question;(a) Based on the information contained in these financial statements, determine each of the following for each company. Show all numerical equations including numerator and denominator, not just afinal number. Present your work in a comparative format using a table as illustrated below (showthe work within the table). Leave the numbers rounded as they appear in the financials, and roundresults to one decimal place when necessary:Financial Measure PepsiCo Coca-ColaProfit margin:Net income/Net salesxxxx/xxxx = xx% xxxx/xxxx = xx%1) Current ratio at the end of 2008.2) Acid-Test Ratio at the end of 2008.3) Accounts receivable turnover for 2008.4) Average Collection Period (aka days sales in receivable) for 2008.5) Inventory turnover for 2008.6) Days inventory on hand for 2008.7) Profit margin expressed as a % of net sales for 2008.8) Asset turnover ratio at the end of 2008.9) Return on assets for 2008.10) Return on common stockholders? equity at the end of 2008.11) Earnings per share (EPS) for 2008.12) Debt (excluding ?deferred income taxes?) to total assets at the end of 2008.13) Times interest earned for 2008. [(Net income + income tax expense + interest expense)/interest exp.]14) Book value per common share (aka equity per common share) at the end of 2008. (Hint:Use the value reported for ?common shareholders? equity? as the numerator for PepsiCo.)15) In reference to #?s 14 above, define book value per common share and market value percommon share, and explain at least two of the factors attributing to their differences.(c) What conclusions concerning the relative profitability, liquidity, long-run solvency, and theefficiency of assets can be drawn from your analysis above (compare and contrast the twocompetitors using specific financial measures from the analysis above)? I am expecting at leastone paragraph on each financial measure. (12 points)(d) Using information from your analysis (state which parts of the analysis are being used), would thegroup recommend purchasing the stock of PepsiCo or Coca-Cola? (3 points)


Paper#41210 | Written in 18-Jul-2015

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