Standings of Pepsi Cola N Coca Cola in 2009
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- Date Submitted: 11/09/2010 08:04 PM
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revenue or sales income to the company.
In comparing the two companies Pepsi because of its high asset turnover ratio of 1.14 it has a lower profit margin in comparison to Coca-Cola’s asset turnover ratio of .69 which means that Cola-cola has a better profit margin than Pepsi.
3. Earnings per Share: is the portion of a company’s profit allocated to each of its outstanding share of common stock.
In comparing Pepsi and Coca-Cola we see that Pepsi allocates more of its profits to its investors 3.89% in comparison to Coca-Cola’s 2.98% making Pepsi in this area a better company to invest in cause you’ll get more for your investment.
4. Quick ratio: measures a company’s ability to meet its short term obligations, for instance if there is a recession this ratio shows how quickly the corporation can respond to it with liquid assets.
In looking at Pepsi and Coca we see that Pepsi breaks even with 1.00 ratios and Coca-Cola has more liabilities than assets making Pepsi a better company in this area.
5. Debts to Assets ratio: indicates what per portion of a company’s assets are being financed through debts, this ratio helps also to show how stable that company is.
When you compare two companies you look to see which one has a lower debt to asset ratio and in comparing Pepsi and Coca-Cola we can see that Coca-Cola is more stable in this area with a ratio of .48 in comparison to PepsiCo’s ratio of .56
In comparing the two companies Pepsi because of its high asset turnover ratio of 1.14 it has a lower profit margin in comparison to Coca-Cola’s asset turnover ratio of .69 which means that Cola-cola has a better profit margin than Pepsi.
3. Earnings per Share: is the portion of a company’s profit allocated to each of its outstanding share of common stock.
In comparing Pepsi and Coca-Cola we see that Pepsi allocates more of its profits to its investors 3.89% in comparison to Coca-Cola’s 2.98% making Pepsi in this area a better company to invest in cause you’ll get more for your investment.
4. Quick ratio: measures a company’s ability to meet its short term obligations, for instance if there is a recession this ratio shows how quickly the corporation can respond to it with liquid assets.
In looking at Pepsi and Coca we see that Pepsi breaks even with 1.00 ratios and Coca-Cola has more liabilities than assets making Pepsi a better company in this area.
5. Debts to Assets ratio: indicates what per portion of a company’s assets are being financed through debts, this ratio helps also to show how stable that company is.
When you compare two companies you look to see which one has a lower debt to asset ratio and in comparing Pepsi and Coca-Cola we can see that Coca-Cola is more stable in this area with a ratio of .48 in comparison to PepsiCo’s ratio of .56