Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Gross profit margin 0.607 0.551 0.599 For the three companies, the net profit margin is: (Round to three decimal places.) Net profit margin Coca-Cola

image text in transcribedimage text in transcribedimage text in transcribed

Gross profit margin 0.607 0.551 0.599 For the three companies, the net profit margin is: (Round to three decimal places.) Net profit margin Coca-Cola 0.156 Pepsico 0.101 Keurig Dr. Pepper . 0.13 www For the three companies, the return on total assets (ROA) is: (Round to three decimal places.) Return on total assets Coca-Cola 0.075 4 Pepsico 0.085 Keurig Dr. Pepper 0.086 For the three companies, the return on equity (ROE) is: (Round to three decimal places.) Return on equity Coca-Cola Pepsico T 0.283 0.562 Keurig Dr. Pepper 0.392 Profitability analysis The table shows total revenues, cost of goods sold, eamings available for common stockholders, total assets, and stockholders' equity for three companies competing in the bottle drinks market: The Coca-Cola Company, Pepsico Inc., and Keurig Dr Pepper a. Use the information given to analyze each firm's profitability in as many different ways as you can. Which company is most profitable? Why is this question difficult to answer b. For each company, ROE >ROA. Why is that so? Look at the difference between ROE and ROA for each company. Does that difference help you determine which firm uses the highest percentage of debt to finance its activities? Data table (Click the icon here in order to copy the contents of the data table below into a spreadsheet.) Coca-Cola Pepsico Revenues $41,858 $62,796 Cost of goods sold 16,465 28,220 Keurig Dr Pepper $6,444 2,581 Earnings 6,532 6,322 837 Total assets 87,280 74,129 9,788 Shareholders equity 23,055 11,252 2,134 Print Done HOL

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

Introduction To Health Care Management

Authors: Sharon B. Buchbinder, Nancy H. Shanks

3rd Edition

9781284081015

Students also viewed these Corporate Finance questions

Question

What is the specific purpose of an acceptable use policy?

Answered: 1 week ago

Question

What is the formula to calculate the mth Fibonacci number?

Answered: 1 week ago

Question

What is the drawback of company rankings based on EVA? AppendixLO1

Answered: 1 week ago