Complete the required ratios for the Coca-Cola Company and PepsiCo Inc. case and compare and contrast the strength of the companies with regard to liquidity, solvency and profitability.

Identify what is in the financial term, such as net income, for the numerator and the denominator.

After calculating the ratios, you then must submit a paragraph or two in which you compare and contrast the companies for each of the following three financial areas.

Do not compare the two companies by ratio but rather by category. For example each company may be stronger on some of the profitability ratios but you are required to interpret their strengths in terms of profitability and then make an overall conclusIon on which company is stronger in terms of profitability.

Liquidity

Solvency

Profitability

apply the Dupont Method of analysis to the profitability analysis

Coca-Cola PepsiCo Liquidity: Current Ratio Accounts Receivable Turnover Average Collection Period Inventory Turnover Days in Inventory Total Current Assets Total Current Liabilites Net Sales Cost of Goods Sold Net Income Average (net) Accounts Receivable for the Year Average Inventories for the year Average Total Assets Average Common Stockholders Equity Average Current Liabilities Average Total Liabilities Total Assets Total Liabilites Income Taxes Interest Expense Net Cash Provided by Operating Activities Capital Expenditures Cash Dividends Coca-Cola $17,551 13,721 30,990 11.0B8 6,824 3.424 2,271 44,595 22,636 13,355 21,960 48,671 23,872 2,040 355 8,186 1,993 3.800 PepsiCo $12,571 8,756 43,232 20,099 5,946 4,654 2.570 37,921 14,556 8,772 23.466 39,848 23,044 2,100 397 Solvency Debt to Assets Ratio Times Interest Earned Free Cash Flow 6.796 2,128 2,732 Profitability: Profit Margin Asset Turnover Return on Assets Return on Common Stockholders Equity