Financial Report Analysis Coca-Cola & Pepsi

Background

Coca-Cola

Coca-Cola was founded in 1886 by John Pemberton who was a civil warfare veteran and Atlanta pharmacist. Today, Coca-Cola smart set is the initiations leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, over 10 billion gallons, used to publish nearly 400 beverage brands. Also, Coca-Cola has been ranked the best mensurate of brand name on the world for more than 10 years.

Pepsi

Pepsi-Cola was created in the late 1890s by Caleb Bradham, a untried Bern, N.C. pharmacist. Frito- model, Inc. was formed by the 1961 merger of the Frito Company, founded by Elmer Doolin in 1932, and the H. W. Lay Company, founded by Herman W.Lay, also in 1932. Pepsi is the second largest beverage company on the world.

This is a very special case that both of companies, Coca-Cola and Pepsi, are two of the best food companies on the world with similar products and same market.

1.         Profitability

        2003         2002         2001         2000         1999

        Pepsi          blast         Pepsi         Coke         Pepsi         Coke         Pepsi         Coke         Pepsi         Coke

Return on sales         13.23%         20.70%         12.00%         15.60%         9.88%         22.60%         9.98%         12.50%         10.07%         14.50%

Gross margin         54.10%         63.10%         54.09%         63.70%         60.09%         65.60%         59.86%         64.30%         49.30%         64.20%

Operating profit/ sales         17.73%         24.80%         17.18%         27.90%         17.73%         30.50%         17.09%         21.30%         13.84%         23.80%

EBIT/Sales         18.51%         26.10%         17.73%         28.



10%         13.53%         32.30%         14.76%         19.60%         20.99%         22.80%

EBITDA/Sales         23.04%         29.28%         22.18%         31.04%         17.55%         33.37%         19.05%         23.95%         26.67%          25.49%

Compared to average profitability of industry, both companies have performed well. Coca-Colas, however, profitability is relatively high than Pepsis. Some reasons caused it as following:

1.1          personify of Goods Sold: Pepsis COSD is critical high than Coca-Cola. Average

Of Pepsi was 55.5% and average of CODS was 37%. It performer that Coca-Cola strictly controlled salute of goods,

1.2         Selling and administration cost: Pepsis cost of this item was still a little...

If you want to get a full essay, order it on our website: Ordercustompaper.com



If you want to get a full essay, wisit our page: write my paper