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I need to explain: A. Trend of change in Pepsi from 2018-2019 --- (is this in regards to a certain number, or overall?) B. Who
I need to explain:
A. Trend of change in Pepsi from 2018-2019 --- (is this in regards to a certain number, or overall?)
B. Who the better investment is and why? --- (what ratio do I look for to answer this please?)
I attached the calculations my group had to solve for.
COKE AND PEPSI 2018 AND 2019 | |||||
Coke 2018 | Coke 2019 | Pepsi 2018 | Pepsi 2019 | ||
LIQUIDITY RATIOS | |||||
Current: | 1.05 | 0.76 | 0.99 | 0.86 | |
Acid-test: | 0.95 | 0.63 | 0.85 | 0.7 | |
Cash: | 0.31 | 0.24 | 0.39 | 0.27 | |
Operating cash flow: | 0.26 | 0.39 | 0.43 | 0.47 | |
LEVERAGE RATIOS | |||||
Debt: | 0.77 | 0.76 | 0.81 | 0.81 | |
Debt to equity: | 3.78 | 3.09 | 4.34 | 4.31 | |
Interest coverage: | 9.96 | 10.66 | -6.63 | 8.63 | |
Debt service coverage: | 0.31 | 0.37 | 0.46 | 0.5 | |
EFFICIENCY RATIOS | |||||
Asset turnover: | 0.62 | 0.44 | 0.82 | 0.86 | |
Inventory turnover: | 4.34 | 4.53 | 9.67 | 9.32 | |
Receivables turnover: | 9.26 | 11.24 | 9.13 | 8.85 | |
Day sales in inventory: | 84.06 | 80.52 | 62.32 | 39.16 | |
PROFITABILITY RATIOS | |||||
Gross margin: | 0.59 | 0.61 | 0.45 | 0.45 | |
Operating margin: | 0.27 | 0.27 | 0.15 | 0.15 | |
Return on assets: | 0.08 | 0.10 | 0.16 | 0.09 | |
Return on equity: | 0.38 | 0.47 | 0.87 | 0.5 | |
MARKET VALUE RATIOS | |||||
Book value per share: | 3.98 | 4.43 | 10.2 | 10.45 | |
Dividend yield: | 0.03 | 0.01 | -50.63 | 0.003 | |
Earnings per share: | 1.5 | 2.08 | 8.88 | 5.2 | |
Price-earnings: | 31.93 | 26.74 | 11.47 | ||
Basic EPS | 1.51 | 2.09 | 5.65 | 5.26 | |
Diluted EPS | 1.5 | 2.07 | 8.78 | 5.23 | |
(not sure if these are correct, I was having trouble with these.) |
Thank you for your time and help!
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