The m itary abbreviation is very important to whatsoever follow that wants to succeed and grow from year to year. Financial analysis helps companies keep track of all the financial statements and how well the comp either is doing as a whole. There are three characteristics that flow a factor when analyzing financial statements, which are liquidity, profitability and the solvency of any company. Within this paper I provide remove a financial analysis of Coca-Cola and PepsiCo. I allow for compare the financial statements of both companies for the year of 2004 and 2005 for the comparison of the two companies. With this I will be able to explain to investors which company is more steadfast for them to invest their money into.
There are two major power houses within the soft drink industry one being Coca-Cola Company and the other being PepsiCo, Inc. There will be three different types of analysis that will be conducted; the first analysis is the Ratio Analysis. The Ratio analysis cash in ones chips expresses the relationship between selected items of the financial statement data (Weygandt, Kimmel, Kieso, 2008). The warrant analysis that I will conduct is call the plumb or Common Size Analysis.
The Vertical analysis is a technique that expresses each financial statement item as a percent on a base tote up (Weygandt, Kimmel, Kieso, 2008). There are three different types of accounts that we will be looking at with the vertical analysis and they are the tot Assets, the Total Liabilities and Stockholders Equity, and finally is the fire Sales or Net Revenues. The third type of analysis that I will conduct is called the Horizontal or Trend Analysis. The Horizontal analysis is a technique for evaluating a series of financial statements data oer a period of time (Weygandt, Kimmel, Kieso, 2008). The purpose of the horizontal analysis is to determine if the company has had an increase or a light from year to year. This will be determined in an heart or a percentage for the...If you want to get a full essay, order it on our website: Ordercustompaper.com
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