Common size and Financial Ratios

1) identify under-performing areas for the company's and make recommendations on how to fix the issue?

Common Size Ratios in Millions (000,000) Sales Cost of Sales Gross Profit PepsiCo (2020) 70 372 100.00% 31.797 45.184 38 575 5482 PepsiCo (2019) 67.161 30,132 37,020 10000 44 879 55 13% Coca-Cola (2020) 33 014 100 009 13.433 40-609 19581 59 319 Coca Cola (2019) 37 206 100.00 14619 30 235 22 647 60.77 Selling G & A Expenses 28.496 40.49% 26.738 39 815 9.731 29.485 12.103 22.484 Total Operating Expenses 28.495 40404 26.738 30819 9.757 29 55% 12.114 325195 Operating Income 10.080 1432 10.291 15 32% 9.824 29 70% 10,533 28 20% Net Income 7,175 10 201 7.353 10 954 7.747 23 47% 8.920 23.94 Pepsi 2020 Pepsi 2019 Coca-Cola 2020 Coca-Cola 2019 7.72% 9.36% 8.87% Financial Ratios Profitibility Ratios Return on Assets (Profit/Total Assets) Profit Margin (Net income/Sales) Return on Total Capital (After Total Debt+Owners Equity) 10.33% 10.20% 10.95% 23.47% 23.94% 17 36% 21.76% 15.82% 17.06% 0.98 0.86 1.32 0.76 Liquidity Ratios Current Ratio (Current Assets/Current Liabilities) Accounts Payable to Income Ratio (Accounts Payable/Annual Income) Quick Ratio (Cash Accounts Receivable/Current Liabilities) 18.78% 18.15% 33.76% 30.35% 0.77 0.66 0.89 0.92 3.26 3.14 2.01 2.03 Solvency Ratios Debt to Equity (Total Debt/Total Shareholder's Equity) Debt to Assets (Total Debt/Total Assets) Debt to Capital (Total Debt/Total Debt + Total Shareholder's Equity) 48 01% 41.39% 49.02% 50.00% 0.77 0.76 0.67 0.67 7.62 9.03 4.11 4.33 Activity Ratios Inventory Turnover (COGS/Ending Inventory) Days Sales (365/Inventory Turnover) Fixed Asset Turnover (Revenue/Fixed Assets) 47.89 40.43 88.74 84.37 1.01 1.10 0.49 0.56