Comparison of The Ratios of Coca Cola and Pepsi

Comparison of the ratios of Coca-Cola Company and PepsiCo Company
Coca-Cola Company
PepsiCo Company
1. Current Ratio = $1.45
Current Ratio = $ 1.13
2. Quick Ratio = $ 1.18
Quick Ratio = $ 1.0
3. Debt-to-Equity Ratio = 2.76
Debt-to-Equity Ratio =1.69
4. Debt-to-Total-Assets Ratio = 73%
Debt-to-Total-Assets Ratio = 62.9%
5. Time interest earned ratio = 2.95
Time interest earned ratio = 22.1
6. Receivable turnover = 5.30
Receivable turnover = 9.62
7. Receivable turnover in Days = 68.87 days
Receivable turnover in Days = 37.9 days
8. Inventory turnover = 4.32
Inventory turnover = 5.62
9. Inventory turnover in Days = 84.49 days
Inventory turnover in Days = 64.95days
10. Assets turnover = 0.77 times
Assets turnover = 0.52 times
11. Operating Cycle = 153.36 days
Operating Cycle = 102.85 days
12. Gross profit margin = 44.1 %
Gross profit margin = 60.7 %
13. Net profit margin = 1.59 %
Net profit margin = 18.4 %
14. Return on investment (ROI) = 1.22%
Return on investment (ROI) = 9.58 %
15. Return on Equity (ROE) = 4.63 %
Return on Equity (ROE) = 25.79 %
Company Background
The Coca-Cola Company is the worlds largest beverage company serving more than 200 countries
with almost 500 brands ranging from the actual Coca-Cola to products such as Sprite, Fanta,
POWERADE, Minute Maid, and many, many more.
The product was originally born in Atlanta, Georgia, in 1886 where Dr. John Smith Pemberton, a
local pharmacist, produced a caramel-colored liquid, and when it was done, carried a jug of the new
product down the street to Jacobs pharmacy. Here, the mixture was combined with carbonated water
and sampled by customers who all agreed this new drink was something special. So Jacobs
pharmacy put it on sale and sold it for 5 cents a glass.
Later Dr. Pembertons partner and bookkeeper Frank Robinson invented the name and the lettering
which has been written the same way ever since.
Name
The Coca Cola Company
Logo
Industries served
Beverages
Geographic areas Worldwide

served
Headquarters
U.S.
Current CEO
Muhtar Kent
Revenue
$ 48.01 billion (2012)
Profit
$ 9.01 billion (2012)
Employees
146,200
Main Competitors PepsiCo Inc., Dr Pepper Snapple Group, Inc.,

Unilever, Groupe Danone, Kraft Foods Inc., Nestl
S.A. and many other companies.
PRODUCTS OF COCA COLA COMPANY
COCA-COLA
FANTA
COCA-COLA LIFE
MINUTE MAID
PWERADE
COCA-COCA LIGHT
GLACEAU VITAMINWATER
GLACEAU WATER
FUZE
BURN
NOS
POWERADE ZERO
SPRITE
COCA-COLA ZERO
DASANI
CIEL
SIMPLY
FRESCO
DEL VALLE
MELLO YELLO
FUZE TEA
HONEST TEA
ODWALLA
Pepsi Cola is, just like Coca-Cola, a creation of an American pharmacist. In 1893, 5
years after the introduction of Coca-Cola, Caleb Bradham began to serve his
customers Brads Drink from his own soda machine. Because of the positive
reactions of his samplers he decided to begin advertising in 1898 and he named
the drink Pepsi-Cola. He founded the Pepsi-Cola Company in 1902. Pepsi-Cola is a
big success in the United States and the Pepsi-Cola
Company decides to export the drink to Mexico in 1907,
other countries would follow soon.
The company invested in sugar and is declared bankrupt
in 1923 due to the collapse of sugar prices. After a couple
of reorganizations the Pepsi-Cola Company is bought by
Loft Inc. in 1931. Because of the popularity of Pepsi, Loft
changes its name to Pepsi-Cola Company in 1941.
Pepsi-Cola is referred to as the kitchen cola in the 1960s because its much
cheaper than competing drinks. The company decides to focus their advertising
strategy on the post-war baby boom generation. One of the new slogans is: Now
its Pepsi, for those who think young. Diet Pepsi is
introduced in 1964 for people who would like to live
healthy.
The PepsiCo Company was founded in 1965 by the
president of the Pepsi-Cola Company and the chairman of
Frito-Lay. It produces and sells not only soft drinks like Pepsi, 7-Up, Mountain Dew,
Miranda and Gatorade but also snacks like Lays, Doritos, Hamkas and Quaker
cereals in 192 countries.
Famous people like Michael Jackson, Lionel Richie, Tina Turner, Shaquille ONeal,
the Spice Girls, David Beckham, Britney Spears and Cindy Crawford appeared in
Pepsi commercials in the 1980s and 1990s to emphasize that Pepsi is the drink
for the new generation.
Introduction and History of PepsiCo

Pepsi
Products of PepsiCo Company
* Caffeine Free Pepsi

* Diet Pepsi
* Caffeine Free Diet Pepsi
* Diet Pepsi Max
* Jazz Diet Pepsi
* Diet Pepsi Lime
* Diet Pepsi Vanilla
* Pepsi Wild Cherry
* Diet Pepsi Wild Cherry
* Pepsi ONE
* Mountain Dew
* Diet Mountain Dew
* Caffeine Free Mountain Dew
* Mountain Dew Code Red
* Diet Mountain Dew Code Red
* Mountain Dew LiveWire
* Manzanita Sol
* Mirinda
* Mug Root Beer
* Diet Mug Root Beer
* Mug Cream Soda
* Diet Mug Cream Soda
* Sierra Mist
* Sierra Mist Free
* Slice
* AMP energy drink
* Aquafina
* Aquafina Alive
* Aquafina FlavorSplash
* Aquafina Sparkling
* Dole juices and juice drinks (License)
* Dole Plus fortified juices (License)
* Ethos Water (License)
* FruitWorks juice drinks
* Lipton Brisk (Partnership)
* Lipton Iced Tea (Partnership)
* Lipton Pure Leaf (Partnership)
* No Fear
* Sugar Free No Fear
* Ocean Spray juices and juice drinks (License)
* Frappuccino ready-to-drink coffee (Partnership)
* Starbucks DoubleShot (Partnership)
* Starbucks DoubleShot Energy (Partnership)
* Starbucks Iced Coffee (Partnership)
* SoBe juice drinks, dairy, and teas
* SoBe Lean diet juice drinks, dairy, and teas
* SoBe Life Water
* SoBe Synergy
* SoBe Adrenaline Rush
* TAVA
* Tropicana lemonade and punches
* Tropicana Light lemonade and punches

* Tropicana Twister sodas

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Comparison of the ratios of Coca-Cola Company and PepsiCo Company

1. Current Ratio = $1.45

Current Ratio = $ 1.13

2. Quick Ratio = $ 1.18

Quick Ratio = $ 1.0

3. Debt-to-Equity Ratio = 2.76

Debt-to-Equity Ratio =1.69

4. Debt-to-Total-Assets Ratio = 73%

Debt-to-Total-Assets Ratio = 62.9%

5. Time interest earned ratio = 2.95

Time interest earned ratio = 22.1

6. Receivable turnover = 5.30

Receivable turnover = 9.62

7. Receivable turnover in Days = 68.87 days

Receivable turnover in Days = 37.9 days

8. Inventory turnover = 4.32

Inventory turnover = 5.62

9. Inventory turnover in Days = 84.49 days

Inventory turnover in Days = 64.95days

10. Assets turnover = 0.77 times

Assets turnover = 0.52 times

11. Operating Cycle = 153.36 days

Operating Cycle = 102.85 days

12. Gross profit margin = 44.1 %

Gross profit margin = 60.7 %

13. Net profit margin = 1.59 %

Net profit margin = 18.4 %

14. Return on investment (ROI) = 1.22%

Return on investment (ROI) = 9.58 %

15. Return on Equity (ROE) = 4.63 %

Return on Equity (ROE) = 25.79 %

The Coca Cola Company

Geographic areas Worldwide

$ 48.01 billion (2012)

$ 9.01 billion (2012)

Main Competitors PepsiCo Inc., Dr Pepper Snapple Group, Inc.,

PRODUCTS OF COCA COLA COMPANY

Introduction and History of PepsiCo

Products of PepsiCo Company

* Caffeine Free Pepsi

* Tropicana Light lemonade and punches

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