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COCA COLA VS PEPSI

(PRESENTATION)
By : USAID KHAN
(MIS,ITM,ACMA,CISA)

(INTERNATIONAL ISLAMIC UNIVERISTY ISLAMABAD),


INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS OF PAKISTAN(ICMAP)
Title of Project

Coca-Cola company
vs
Pepsi Company
Introduction To the Project
The project is that we have taken two companies
Coca-Cola and Pepsi which are listed on the stock
exchange. These are two very famous drink making
companies all over the world. We have compared
there annual financial statements for three years.
And then we done a comparison between them. We
have took their balance sheets, income statements,
cash flow statements and statements of owner’s
equity and find their ratios to done the correct
comparison 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
Liquidity Ratio/Short Term Solvency Ratios:

Coca cola company Pepsi company

Year 2007 Year 2008 Year 2009 Year 2007 Year 2008 Year 2009

Current 0.91 0.94 1.3 1.31 1.23 1.43


ratio

Quick 0.75 0.77 1.11 1.14 1.0 1.13


ratio
Activity Ratios/Turnover Ratios/Efficiency Ratios:

Coca cola company Pepsi company


Year 2007 Year 2008 Year 2009 Year 2007 Year 2008 Year 2009

Stock 87.6 days 78.7 days 87.21 50.14 48.78 51.58


turnover days days days days
period

Debtor’s 122.9 111.2 139.23 96.10 90.57 91.09


collection days days days days days days
period

Account 86 days 90 days 88 days 56 days 55 days 56 days


payable
period
Solvency 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 0.99 0.98 0.96 1.00 1.97 1.37


equity
ratio
Interest 10.68 17.14 25.2 34.07 21.41 20.35
cover ratio
Profitability Ratios:

Coca cola company Pepsi company


Year 2007 Year 2008 Year 2009 Year 2007 Year 2008 Year 2009

Gross 212.20 214.84 214.5 136.8 129.2 133.3


profit ratio
Net profit 64.71 57.23 69.29 34.54 27.25 32.09
ratio
Operating 85.17 73.93 9.80 45.78 37.33 41.61
profit ratio
Return on 26.58 28.36 27.52 16.33 42.47 35.38
equity
Return on 13.82 14.33 14.02 16.33 14.29 14.92
asset
Shareholder’s Investment Ratios/Key
Performance Indicators:

Coco cola company Pepsi company


Year Year Year Year Year Year
2007 2008 2009 2007 2008 2009

Earning 2.51 2.59 2.95 3.48 3.26 3.81


per ratio

Dividend 1.36 1.52 1.64 1.35 1.65 1.78


per ratio

Dividend 1.91 1.65 1.80 2.58 1.97 2.14


cover
Graphs of Liquidity Ratio/Short Term Solvency Ratios:

1). Graph of Current Ratios


1.5

1
Ratios Ratios Pepsi Co.
0.5 Coca Cola Co.

0 2). Graph Quick Ratios


2007 2008 2009
Years 1.2
1
0.8
Pepsi Co.
0.6
0.4
Coca Cola
0.2 Co.
0
2007 2008 Year
2009
Activity Ratios/Turnover Ratios/Efficiency Ratios:
1). Stock Turnover Period

100
80 Pepsi Co.
Days
60
40 Coca Cola
20 Co.
0
Years 2007 2008 2009

2). Debtor’s Collection Period

150 4
3 Pepsi Co.
100 Pepsi Co.
Days 2
50 Coca Cola 1 Coca Cola
Co. Co.
0
0
2007 2008 2009
2007 2008 2009
Years
Solvency Ratios:

1). Debt Ratio 2). Debt Equity Ratio


0.25 2
0.2
Pepsi Co.
0.15 Ratios Pepsi Co.
Ratios 0.1
1
Coca Cola
0.05 Coca Cola
Co.
0 Co.
0
2007 2008 2009
2007 2008 2009
Years Years
3). Interest Cover Ratio

40

20 Pepsi Co.
Ratios
Coca Cola Co.
0
2007 2008 2009
Years
Profitability Ratios:

1). Gross Profit Ratio


250
200
Ratios 150 Pepsi Co.
100
Coca Cola Co.
50
0
2007 2008 2009
Years 2). Net Profit Ratio

80

60
Pepsi Co.
Ratios 40
Coca Cola
20 Co.
0
2007 2008 2009
Years
3). Operating Profit Ratio

100
80
Pepsi Co.
Ratios 60
40
Coca Cola
20 Co.
0
2007 2008 2009
Years
4). Return on Equity 5). Return on Assets

50 17
40 Ratios 16
Pepsi Co.
Pepsi Co. 15
30
Ratios 14
20 Coca Cola
Coca Cola 13
10 Co.
Co. 12
0
2007 2008 2009
2007 2008 2009
Years
Years
Shareholder’s Investment Ratios/Key Performance Indicators:
1). Earnings per share
4
3 Pepsi Co.
Ratios 2
1 Coca Cola
0 Co.
2007 2008 2009
Years

2). Dividend Per Share 3). Dividend Cover

4 3
3 Pepsi Co. 2 Pepsi Co.
Ratios
Ratios
2
1 Coca Cola
1 Coca Cola
Co. Co.
0
0
2007 2008 2009
2007 2008 2009
Years
Years