HORIZONTAL ANALYSIS

Horizontal analysis is also known as trend analysis. By looking at recent trends, and also taking into disclosures and press releases from the company and outside the company, the financial markets often try to predict the future stock prices.

In the next few steps, do a simple 3 years trend analysis.

Go to Coca-Cola Company and PepsiCo Inc.10-K for 2019 and open Income Statement.

Coca-Cola Company 10-K (Click the link below and download the 2019 10-K report release on 02/24/20):

https://investors.coca-colacompany.com/filings-reports/all-sec-filings?form_type=10-K&year=

Page: 68/214

PepsiCo Inc. 10-K: https://pepsico.gcs-web.com/static-files/c85bda79-43e0-46b5-a701-d01f2e5858f7 Page: 76/674

Write down the Revenues. Coca-Cola Company PepsiCo Inc. Dec 31, 2017 Dec 31, 2018 Dec 31, 2019 Write down the Operating Income. Coca-Cola Company PepsiCo Inc. Dec 31, 2017 Dec 31, 2018 Dec 31, 2019 Write down the Consolidated Net Income. Coca-Cola Company PepsiCo Inc. Dec 31, 2017 Dec 31, 2018 Dec 31, 2019

Open an Excel Spreadsheet. Type the Revenues for Coca-Cola Company and PepsiCo Inc. in two separate columns. Title them as Coca-Cola Company Revenues and PepsiCo Inc. revenues respectively. Make a simple line chart for each. Title the line charts as Coca-Cola Company Revenues and PepsiCo Inc. revenues respectively.

Next, type the Operating Income for Coca-Cola Company and PepsiCo Inc. in two separate columns. Title them as Coca-Cola Company Operating Income and PepsiCo Inc. Operating Income respectively. Make a simple line chart for each. Title the line charts as Coca-Cola Company Operating Income and PepsiCo Inc. Operating Income respectively.

Next, type the Consolidated Net Income for Coca-Cola Company and PepsiCo Inc. in two separate columns. Title them as Coca-Cola Company Net Income and PepsiCo Inc. Net Income respectively. Make a simple line chart for each. Title them as Coca-Cola Company Net Income and PepsiCo Inc. Net Income respectively.

Once all six-line charts are ready, write down a brief analysis on Coca-Cola Companys revenue, operating income and net income trends. Next, write down a brief analysis on PepsiCo Inc.s revenue, operating income and net income trends. Contrast the two. There is no one correct answer. We will be checking for plagiarism.