coca cola vs pepsi

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(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

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