The company I am analyzing is Pepsico $($NYSE: PEP$),$ with Coca$-$Cola $($NYSE: KO$)$ as its closest competitor, and the industry will be Food$/$Non$-$Alcoholic Beverages. For this task, use the Module One Activity Template Spreadsheet to analyze the financial health of two companies in the same industry based on their ratios. Use your selected company and another one in the same industry. Then, complete your analysis by writing a short synopsis of your findings in the space provided with the analysis. Lastly, respond to the two questions listed below to complete the ratio analysis.

Prompt

Follow these steps to analyze the financial health of your selected company and another one in the same industry. Use the Module One Activity Template Spreadsheet, which is linked in the What to Submit section, to complete this task. Complete the spreadsheet by providing the following:

Ratio Research: Use the Module One Activity Template Spreadsheet to obtain the data for the ratios for the two companies you selected $($profitability ratios, financial strength, valuation ratios, management effectiveness, and efficiency$).$ To complete this part, you can use the websites CSI Market or Mergent Intellect to obtain the data for the ratios. You can also use the SEC EDGAR Company Filings to obtain the ratios from annual reports. Note: For both companies, ensure you use the ratios from the same year.

Industry Ratios: To analyze ratios for both companies, you need to obtain the ratios for the industry the companies operate in$.$ Industry values for the ratios are provided in the Index column of the Morningstar Valuation page. If no index value is available, put the five$-$year averages for both companies in the Industry or Index column and use these figures for the industry comparison of your ratio analysis.

Ratio Analysis: Use the ratios that you calculated to compare the two companies. In the column on the right in the template, create your analysis by detailing how each company is performing in the ratios. Explain the significance of how the company ratios compare to the industry and each other.

Summary: Finish by answering the questions below. Complete your answers to the questions in a Microsoft Word document that you will submit as part of the assignment.

Briefly explain what a ratio analysis is in $12$ paragraphs. Cite your resources.

Based on the ratio analysis, which company would you be willing to invest in$?$ Why?