The following information is from the 2009 annual reports of The Coca-Cola Company and of PepsiCo (all amounts are in millions of U.S. dollars). The information for PepsiCo is separated into overall results and results for just the beverage segments. Coca-Cola reports that substantially all of its operations are beverage-related.

1. Using the overall data, compute return on equity, return on sales, asset turnover, and assets-to-equity ratio for both PepsiCo and Coca-Cola.

2. Using the Beverages segment data for PepsiCo, compute return on beverage sales, beverage asset turnover, and return on beverage assets for both PepsiCo and Coca-Cola. Because Coca-Cola has only one operating segment, the overall results are the same as the beverage segment results. Use operating income and identifiable operating assets in your calculations (in place of net income and total assets, respectively).
3. Some writers have claimed that Coca-Cola has outperformed PepsiCo historically because Coke has concentrated on the profitable soft drink business, whereas PepsiCo has diversified into snack foods. Evaluate this claim in light of your calculations in (1) and (2).

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PepsiCo Oveall Beverages Overall .$43,232 $22,421$30,990 8,231 6,824 41,916 48,671 24,799 Sales. - Operating income Net income. 8,044 5,946 3,820 21,928 Total assets 39,848 Total equity 16,908