Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Evaluation of the market prospets using some of the analysis below e) Acid-test ratio (Please read Instruction 10.) a) Return on total assets + c)

Evaluation of the market prospets using some of the analysis below

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
e) Acid-test ratio (Please read Instruction 10.) a) Return on total assets + c) Profit margin ratio + 2016- 2018- 2017- 2016- 2018- 2017- 2016- 2018- 2017- The = 0.89 1.17 = 1.08- The 7.57% 1.46% 7.39% The = 20.33% = 3.62% 15.65% Socam Coca- Coca- Cola Cola Cola Compa Compa Compa ny+ ny+ ny+ PepsiC = 19.42% = 7.73% = 10.16% PepsiC = 0.73 = 1.29 = 1.08 15.90% 6.34% 8.80% o, Inc. o, Inc. Pepsi Co, d) Current ration f) Gross margin ratio Inc.+ 2018- 2017 2016- 2018- 2017- 2016+ The = 63.05% = 62.57% 60.67% b) Debt ration The =1.05 = 1.34 = 1.28- Coca- Coca- Cola 2018- 2017- 2016- Cola Compa The 77.10% 78.41% 73.39% Compa ny+ ny+ PepsiC = 54.56% = 54.67% = 55.06% Cola PepsiC =0.99- =1.51+ =1.28- o, Inc. + Compa o, Inc. ny+ PepsiC 81.19% 86.24% 84.76% o, Inc.Market Prospects Evaluate the market prospects of Coca-Cola across time. Evaluate the market prospects of PepsiCo across time. Compare the market prospects of CocaCola against PepsiCo. [Please provide at least two relevant ratios to support your analysis here] [Please provide at least two relevant ratios to support your analysis here] [Please provide at least two relevant ratios to support your analysis here] g) Inventory turnover i) Accounts receivable turnover (Please read Instruction 6.)+ 2018- 2017- 2016+ + k) Times interest earned + The = 4.34 = 4.97 time = 5.90 2018- 2017- 2016- Coca- times The 9.02 = 9.41 10.74 2018- 2017+ 2016- The Cola times Coca- = 10.09 = 9.02 = 12.10 Compa Cola Coca- ny+ Compa Cola times+ times times PepsiC o, Inc. 9.67 = 10.15 = 10.37 ny+ Compa times times times PepsiC 9.13 9.56 ny+ o, Inc. 9.26 PepsiC o, Inc. = 7.03 times 9.34 = 7.37 times times h) Days' sales in inventory j) Total asset turnover + 2018- 2017+ 2016- I) Debt to-equity ratio (Please read Instruction 5.) 2018- 2017+ 2016- The 2017- 2016- = 85.78- =0.40 =0.47 2018- The = 0.37 = 73.10 = 59.30 Cocam times The = 3.63 = 2.76 Cola times times = 3.37+ Cola Compa Coca- Compa Cola ny+ Compa ny+ ny+ PepsiC = 38.86- = 37.37 = 35.23 PepsiC PepsiC = 4.32 = 6.27+ = 5.56 o, Inc. S o, Inc. 0.82 0.83 =0.88 o, Inc.+ times+ times timesm) Book value per ordinary share (Please read Instruction 5.)+ o) Price-earnings ratio (Please read Instruction q) Cash flow on total assets 7.)+ (Please read Instruction 4.)+ 2018- 2017- 2016- 2018- 2017+ 2016- The 2018- = $3.98 2017- 2016- = $4.01 = $5.38 The =0.08+ = 0.10+ per share- per share- per share- = 157.05- = 27.42- The = 0.09+ Coca- Cola Coca = 31.34 + Compa Cola Cola Compa Compa ny+ PepsiC = $10.33 ny + ny+ = $7.78 = $7.88 o, Inc. PepsiC PepsiC = 0.12+ = 0.13- = 0.15+ per share per share- per share- 0, Inc. = 12.49 - = 35.18- = 23.79 o, Inc. ) Basic earnings per share (+ p) Dividend yield (Please read Instruction 7 & 9.)~ 2018- 2017- 2016- The = $ 0.29 $ 1.51 2018+ 2017- 2016- = $1.51 per share. per share. The = 3.29% = 3.23% = 3.38% Cola per share Cocam Compa Cola ny+ Compa PepsiC = $8.84 per = $ 3.41 E $4.40 ny + o, Inc. share- per share per share- PepsiC = 3.25% = 2.64% = 2.83% o, Inc.+

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Taxation Of Individuals And Business Entities 2015

Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

6th Edition

978-1259206955, 1259206955, 77862368, 978-0077862367

Students also viewed these Accounting questions