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The annual reports of the Coca-Cola Co. and PepsiCo Inc. indicate the following for the year ended December 31, 2017 (amounts in millions): Coca-Cola Co.
The annual reports of the Coca-Cola Co. and PepsiCo Inc. indicate the following for the year ended December 31, 2017 (amounts in millions):
Coca-Cola Co. | PepsiCo Inc. | |||||
Net revenues | $ | 35,410 | $ | 63,525 | ||
Net income | 1,283 | 4,908 | ||||
Total assets, January 1, 2017 | 87,270 | 73,490 | ||||
Total liabilities, January 1, 2017 | 64,050 | 62,291 | ||||
Total liabilities, December 31, 2017 | 68,919 | 68,823 | ||||
Total stockholders' equity, December 31, 2017 | 18,977 | 10,981 | ||||
Required: a. Calculate ROI and ROE for each company for 2017. (Hint: You will need to calculate some of the numbers used in the denominator of these ratios.) (Enter your answers as a percentage rounded to 1 decimal place (i.e., 32.1).) c. Calculate the debt ratio and debt/equity ratio for each firm at the end of 2017. (Enter your answers as a percentage rounded to 1 decimal place (i.e., 32.1).)
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