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Coke and Pepsi are well-known International brands. Coca-Cola Co. sells more than $34.5 billion each year while annual sales of PepsiCo products exceed $66

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Coke and Pepsi are well-known International brands. Coca-Cola Co. sells more than $34.5 billion each year while annual sales of PepsiCo products exceed $66 billion. Compare the two companies as a potential investment based on the following ratios as reported by csimarket.com for the twelve months ended September 27, 2019 Ratio a. Gross profit percentage b. Net profit margin C. EPS Coca-Cola 61.30% PepsiCo 55.00% 22.70% 18.00% $1.66 $8.82 d. Inventory turnover ratio 4.20 8.30 e. Current ratio. 0.62 0.95 +. Debt-to-assets 0.76 0.82 32.50 15.50 g. P/E ratio Required: 1. For each ratio listed, indicate whether it would be used to compare profitability, liquidity, or solvency, or whether it is not applicable (NA) to comparing companies a. Gross profit percentage b. Net profit margin 0 EPS d. Inventory turnover ratio e Current ratio f.Debt-to-assets 9. P/E ratio Liquidity NA Profitability Solvency 2. Which company appears more profitable? Coca-Cola PepsiCo 3. Which company appears more liquid? Coca-Cola PepsiCo 4. Which company appears more solvent? Coca-Cola PepsiCo

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