finance present
TRANSCRIPT
Truong Phuong Quyen
Thai Thanh Quang
Nguyen Minh Tan
Le Vu Hoang Tuan
Members
Introduction
Financial Analysis
Common-size analysis
• Common-size income statement analysis
• Common-size balance sheet analysis
• Common-size cash flow analysis
Comparative analysis
• Comparative income statement
• Comparative balance sheet
• Comparative cash flow
Financial ratio analysis
Conclusion
Outline
Coca-Cola was
founed in 1886 by Dr.
John S Pemberton
The history of the
world’s favourite drink
Introduction
Strong leaders in the high profitable soft
drink/beverage industry.
Coca-Cola owns the best known
worldwide, whereas Pepsico also has
great brand-name recognition.
Introduction
Financial Analysis
Coca-Cola Common-size Statement of Income
Coca-cola Enterprises Inc.
Period Ending 31-Dec-13 31-Dec-12 31-Dec-11
Total Revenue 46,854,000 48,017,000 46,542,000
Cost of Revenue 18,421,000 19,053,000 18,215,000
Gross Profit 28,433,000 28,964,000 28,327,000
Operating Expenses
Research Development - - -
Selling General and Administrative 17,372,000 17,738,000 17,422,000
Non Recurring - - -
Others 18,000 30,000 732,000
Total Operating Expenses 36,265,000 37,238,000 36,369,000
Operating Income or Loss 10,589,000 10,779,000 10,173,000
Income from Continuing Operations
Total Other Income/Expenses Net
Earnings Before Interest And Taxes
Interest Expense
Income Before Tax 11,477,000 11,809,000 11,458,000
Income Tax Expense 8,626,000 9,068,000 8,646,000
Minority Interest 42,000 - 67,000 - 62,000 -
Net Income From Continuing Ops 8,584,000 9,019,000 8,584,000
Non-recurring Events
Discontinued Operations - - -
Extraordinary Items - - -
Effect Of Accounting Changes - - -
Other Items - - -
Net Income 8,584,000 9,019,000 8,584,000
Pepsi common-szie Statement of IncomePeriod Ending 28-Dec-13 29-Dec-12 31-Dec-11
Total Revenue 66,415,000 65,492,000 66,504,000
Cost of Revenue 31,243,000 31,291,000 31,593,000
Gross Profit 35,172,000 34,201,000 34,911,000
Operating Expenses
Research Development - - -
Selling General and Administrative 25,357,000 24,970,000 25,145,000
Non Recurring - - -
Others 110,000 119,000 133,000
Total Operating Expenses 56,710,000 56,380,000 56,871,000
Operating Income or Loss 9,705,000 9,112,000 9,633,000
Income from Continuing Operations
Total Other Income/Expenses Net
Earnings Before Interest And Taxes
Interest Expense
Income Before Tax 8,891,000 8,304,000 8,834,000
Income Tax Expense 2,104,000 2,090,000 2,372,000
Minority Interest 47,000 - 36,000 - 19,000 -
Net Income From Continuing Ops 6,740,000 6,178,000 6,433,000
Non-recurring Events
Discontinued Operations - - -
Extraordinary Items - - -
Effect Of Accounting Changes - - -
Other Items - - -
Net Income 6,740,000 6,178,000 6,443,000
Coca-Cola Common-size Balance SheetPeriod Ending 2013 2012 Change % 2011
Cash and Cash Equivalents 10,414,000 8,442,000 1,972,000 23% 12,803,000
Short Term Investments 9,854,000 8,109,000 1745000 22% 1,232,000
Net Receivable 4,873,000 4,759,000 114000 2% 4,920,000
Inventory 3,277,000 3,264,000 13000 0% 3,092,000
Other Current Assets 486,000 3,470,000 -2984000 -86% 487,000
Total Current Assets 31,304,000 30,328,000 976000 3% 25,497,000
Long Term Investments 11,512,000 10,448,000 1064000 10% 8,374,000
Property Plant and Equipment 25,032,000 23,486,000 1546000 7% 23,151,000
Goodwill 12,312,000 12,255,000 57000 0% 12,219,000
Intangible Assets 15,299,000 15,082 15283918 15,450,000
Total Assets 90,055,000 86,174,000 3881000 5% 79,974,000
Account Payable 1,933,000 1,844,000 89000 5% 1,966,000
Short Current Long Term Debt 111000 632000 -521000 -82% 16000
Total Current Liabilities 2195000 2579000 -384000 -15% 1848000
Long Term Debt 3726000 2834000 892000 31% 2996000
Other Liabilities 221000 2760000 -2539000 -92% 160000
Deferred Long Term 1103000 1128000 -25000 -2% 1191000
Total Liabilities 7245000 6817000 428000 6% 6195000
Common Stock 3000 3000 0 0% 3000
Retained Earnings 1577000 1126000 451000 40% 638000
Treasury Stock 2868000 1831000 1037000 57% 1014000
Capital Surplus 3899000 3825000 74000 2% 3745000
Other Stockholders' Equity 331000 430000 -99000 -23% 473000
Total Stockholders' Equity 2280000 2693000 -413000 -15% 2899000
Net Tangible Assets 1848000 1362000 486000 36% 996000
PEPSICO Common-size Balance SheetPeriod Ending 2013 2012 Change % 2011
Cash and Cash Equivalents 9375000 6297000 3078000 49% 4067000
Short Term Investment 303000 322000 -19000 -6% 358000
Net Receivable 6954000 7041000 -87000 -1% 6912000
Inventory 3409000 3581000 -172000 -5% 3827000
Other Current Assets 2162000 1479000 683000 46% 2277000
Total Current Assets 22203000 18720000 3483000 19% 17441000
Long Term Investment 1841000 1633000 208000 13% 1477000
Property Plant and Equipment 18575000 19136000 -561000 -3% 19698000
Goodwill 16613000 16971000 -358000 -2% 16800000
Tangible Assets 16039000 16525000 -486000 -3% 16445000
Others Assets 2207000 1653000 554000 34% 1021000
Total Assets 77478000 74638000 2840000 4% 72882000
Account Payable 12533000 12274000 259000 2% 11949000
Short Current Long Term Debt 5306000 4815000 491000 10% 6205000
Total Current Liabilities 17839000 17089000 750000 4% 18154000
Long Term Debt 24333000 23544000 789000 3% 20568000
Other Liabilities 4931000 6543000 -1612000 -25% 8266000
Deferred Long Term Liabilities Charges 5986000 5063000 923000 18% 4995000
Minority Interest 110000 105000 5000 5% 311000
Total Liabilities 53199000 52344000 855000 2% 52294000
Misc Stock Options Warrants 130000 123000 7000 6% 116000
Common Stock 25000 26000 -1000 -4% 26000
Retained Earnings 46420000 43158000 3262000 8% 40316000
Treasury Stock 21004000 19458000 1546000 8% -
Capital Surplus 4095000 4178000 -83000 -2% 4461000
Other Stockholders' Equity 5127000 5478000 -351000 -6% 24099000
Total Stockholders' Equity 24409000 22417000 1992000 9% 20704000
Net Tangible Assets 8243000 11079000 -2836000 -26% 12541000
Coca-Cola Common-size Cash Flow
2,013 2,012 2,011
Net income 8,626 9,086 8,646
Depreciation 1,977 1,982 1,954
Deferred Taxes 648 632 1,035
Non-cash items 223 25 -268
Change in working capital -932 -1,080 -1,893
Cash from operating activities 10,542 10,645 9,474
Capital Expenditure -2,550 -2,780 -2,920
Other investing cash flow items -1,664 -8,624 396
Cash from investing activities -4,214 -11,404 -2,524
Financing cash flow items 17 100 45
Total cash dividends paids -4,969 -4,595 -4,300
Cash from financing activities -3,745 -3,347 -2,234
Foreign exchange effects -611 -255 -430
Net change in cash 1,972 -4,361 4,286
PEPSICO Common-size Cash Flow
2013 2012 2011
Net income 6,787 6,214 6,462
Depreciation 2,663 2,689 2,737
Deferred Taxes -1,058 321 495
Non-cash items 687 -979 782
Change in working capital 609 234 -1,532
Cash from operating activities 9,688 8,479 8,944
Capital Expenditure -2,795 -2,714 -3,339
Other investing cash flow items 170 -291 -2,279
Cash from investing activities -2,625 -3,005 -5,618
Financing cash flow items 64 14 -1,363
Total cash dividends paids -3,434 -3,305 -3,517
Cash from financing activities -3,789 -3,306 -5,135
Foreign exchange effects -196 62 -67
Net change in cash 3,078 2,230 -1,876
Comparative Analysis
Income Statement(in millions)
Coca-cola Enterprises Inc.
12/31/2013 12/31/2012 12/31/2011
Total Revenue $46854000 $48017000 $46542000
Expenses 38270000 38998000 37958000
Net Income $8584000 $9019000 $8584000
Pepsivo Inc.
12/28/2013 12/29/2012 12/31/2011
Total Revenue $66415000 $65492000 $66504000
Expenses 59675000 59314000 60061000
Net Income $6740000 $6178000 $6443000
0
20000000
40000000
60000000
80000000
2011 2012 2013
Coca-ColaRevenue
Pepsico Revenue
0
20000000
40000000
60000000
80000000
2011 2012 2013
Coca-ColaExpense
Pepsico Expense
0
2000000
4000000
6000000
8000000
10000000
2011 2012 2013
NetincomeCoca-Cola
Coca-Cola vs Pepsi Revenue – Expense –
Net Income (USD)
Balance sheet
(in millions)
Coca-Cola Pepsico
Current Assets $21,579 $17,569
Noncurrent assets $51,342 $50,584
Total assets $72,921 $68,153
Current Liabilities $18,508 $15,892
Noncurrent
liabilities
$23,096 $30,785
Owners’ Equity $31,317 $21,476
Total liabilities &
owners’ equity
$72,921 $68,153
Cash Flow
(in millions)
Coca-Cola Pepsico
Cash provided by
operating activities
$9,532 $8,448
Cash used by
investing activities
(4,405) (7,668)
Cash provided
(used) by financing
activities
(3,465) $1,386
Net increase in
cash
$1,662 $2,166
Fixed asset
expenditures
$2,215 $3,253
Financial Ratios Analysis
2013 2012 2011
Liquidity
Current ratio 1.12 1.09 1.04
Quick ratio 1.007 0.97 0.92
Return on investment
Return on asset 1.0 1.1 1.1
Asset utilization
Account receivable
turnover
18.48 18.12 16.26
Inventory turnover 10.80 10.47 10.11
Total assets turnover 0.6 0.56 1.20
Coca-cola financial ratios
Pepsi Financial Ratios
2013 2012 2011
Liquidity
Current ratio 1.24 1.09 0.96
Quick ratio 1.05 1.09 0.74
Return on investment
Return on asset 0.9 0.9 0.9
Asset utilization
Account receivable
turnover
11.14 10.60 10.55
Inventory turnover 10.69 9.95 9.04
Total assets turnover 0.6 0.6 0.6
Coca-
cola
2013 2012 2011
Liquidity
Current
ratio
1.12 1.09 1.04
Quick
ratio
1.00
7
0.97 0.92
Return on investment
Return on
asset
1.0 1.1 1.1
Asset utilization
Account
receivable
turnover
18.4
8
18.12 16.26
Inventory
turnover
10.8
0
10.47 10.11
Total
assets
turnover
0.6 0.56 1.20
Pepsi 2013 2012 2011
Liquidity
Current
ratio
1.24 1.09 0.96
Quick ratio 1.05 1.09 0.74
Return on investment
Return on
asset
0.9 0.9 0.9
Asset utilization
Account
receivable
turnover
11.14 10.60 10.55
Inventory
turnover
10.6
9
9.95 9.04
Total
assets
turnover
0.6 0.6 0.6
Financial Ratios Comparative
2013 2012 2011
Coca- cola $ 1011.56 $ 1223.78 $ 1149.73
Pepsi $ 876.17 $ 930.52 $ 2243.59
Bond Price Analysis
Strong industry players in soft drink/beverage
industry
Strong leaders in the highly profitable soft
drink/beverage industry
Coca-Cola possess the best recognized brand
worldwide that incurred a lower average cost of
sales. However, PepsiCo achieved even better
average sales growth rate annually
Conclusion
