coca cola vs pepsi
TRANSCRIPT
(PRESENTATION)
COCA COLA VS PEPSI
(INTERNATIONAL ISLAMIC UNIVERISTY ISLAMABAD),INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN(ICMAP)
By : USAID KHAN
(MIS,ITM,ACMA,CISA)
Title of Project
Coca-Cola company
vs
Pepsi Company
Introduction To the ProjectThe project is that we have taken two companiesCoca-Cola and Pepsi which are listed on the stockexchange. These are two very famous drink makingcompanies all over the world. We have comparedthere annual financial statements for three years.And then we done a comparison between them. Wehave took their balance sheets, income statements,cash flow statements and statements of owner’sequity and find their ratios to done the correctcomparison between them.
Objective and Significance
Through this project we want take their and on this basis of their ratio we want to compare them, that which of them is active to achieve their goals and which of them is still struggling to achieve the success.
Significance are that through this project We become capable of finding the ratios and also we came to know that which of drink is more liked by people and this project will help us in our future life.
Data collection:We have taken the financial
statements of Pepsi from the website
www.finance.yahoo.com
We have taken the financial statements of Coca-cola from the website
www.thecoca-colacompany.com
Apart from this to get some more data we have searched from the search engines given bellow,
www.google.com
&
www.wikipedia.com
Coca cola company Pepsi company
Year 2007 Year 2008 Year 2009 Year 2007 Year 2008 Year 2009
Current ratio
0.91 0.94 1.3 1.31 1.23 1.43
Quick ratio
0.75 0.77 1.11 1.14 1.0 1.13
Liquidity Ratio/Short Term Solvency Ratios:
Coca cola company Pepsi companyYear 2007 Year 2008 Year 2009 Year 2007 Year 2008 Year 2009
Stock turnover period
87.6 days 78.7 days 87.21 days
50.14 days
48.78days
51.58 days
Debtor’s collection period
122.9 days
111.2 days
139.23 days
96.10 days
90.57 days
91.09 days
Account payable period
86 days 90 days 88 days 56 days 55 days 56 days
Activity Ratios/Turnover Ratios/Efficiency Ratios:
Coco cola company Pepsi company
Year 2007 Year 2008 Year 2009 Year 2007 Year 2008 Year 2009
Debt ratio 0.215 0.008 0.105 0.12 0.23 0.197
Debt equity ratio
0.99 0.98 0.96 1.00 1.97 1.37
Interest cover ratio
10.68 17.14 25.2 34.07 21.41 20.35
Solvency Ratios:
Coca cola company Pepsi company
Year 2007 Year 2008 Year 2009 Year 2007 Year 2008 Year 2009
Gross profit ratio
212.20 214.84 214.5 136.8 129.2 133.3
Net profit ratio
64.71 57.23 69.29 34.54 27.25 32.09
Operating profit ratio
85.17 73.93 9.80 45.78 37.33 41.61
Return on equity
26.58 28.36 27.52 16.33 42.47 35.38
Return on asset
13.82 14.33 14.02 16.33 14.29 14.92
Profitability Ratios:
Coco cola company Pepsi company
Year 2007
Year 2008
Year 2009
Year 2007
Year 2008
Year 2009
Earning per ratio
2.51 2.59 2.95 3.48 3.26 3.81
Dividend per ratio
1.36 1.52 1.64 1.35 1.65 1.78
Dividend cover
1.91 1.65 1.80 2.58 1.97 2.14
Shareholder’s Investment Ratios/Key Performance Indicators:
0
0.5
1
1.5
2007 2008 2009
Pepsi Co.
Coca Cola Co.
1). Graph of Current Ratios
Graphs of Liquidity Ratio/Short Term Solvency Ratios:
Ratios
Years
0
0.2
0.4
0.6
0.8
1
1.2
2007 2008 Year 2009
Pepsi Co.
Coca Cola Co.
2). Graph Quick Ratios
Ratios
0
20
40
60
80
100
2007 2008 2009
Pepsi Co.
Coca Cola Co.
Activity Ratios/Turnover Ratios/Efficiency Ratios:
Days
Years
1). Stock Turnover Period
0
50
100
150
2007 2008 2009
Pepsi Co.
Coca Cola Co.
2). Debtor’s Collection Period
Days
Years
0
1
2
3
4
2007 2008 2009
Pepsi Co.
Coca Cola Co.
Solvency Ratios:
1). Debt Ratio
0
0.05
0.1
0.15
0.2
0.25
2007 2008 2009
Pepsi Co.
Coca Cola Co.
2). Debt Equity Ratio
0
1
2
2007 2008 2009
Pepsi Co.
Coca Cola Co.
Ratios
Ratios
Years Years
3). Interest Cover Ratio
0
20
40
2007 2008 2009
Pepsi Co.
Coca Cola Co.Ratios
Years
Profitability Ratios:
1). Gross Profit Ratio
0
50
100
150
200
250
2007 2008 2009
Pepsi Co.
Coca Cola Co.
2). Net Profit Ratio
0
20
40
60
80
2007 2008 2009
Pepsi Co.
Coca Cola Co.
Ratios
Years
Ratios
Years
3). Operating Profit Ratio
0
20
40
60
80
100
2007 2008 2009
Pepsi Co.
Coca Cola Co.
4). Return on Equity
0
10
20
30
40
50
2007 2008 2009
Pepsi Co.
Coca Cola Co.
5). Return on Assets
12
13
14
15
16
17
2007 2008 2009
Pepsi Co.
Coca Cola Co.
Ratios
Ratios
Ratios
Years
YearsYears
Shareholder’s Investment Ratios/Key Performance Indicators:
1). Earnings per share
0
1
2
3
4
2007 2008 2009
Pepsi Co.
Coca Cola Co.
2). Dividend Per Share
0
1
2
3
4
2007 2008 2009
Pepsi Co.
Coca Cola Co.
3). Dividend Cover
0
1
2
3
2007 2008 2009
Pepsi Co.
Coca Cola Co.
Ratios
RatiosRatios
Years
Years Years
