Abstract
"In 2010, The Coca-Cola Company (TCCC) stands firm in the top spot, while PepsiCo trails way behind its archrival. In light of the slow economic recovery and lingering discussions about a double-dip recession in developed Western markets, it is important to note which players have proved resilient or even outperformed the overall market, and the possible factors affecting their global performance." Ratios are used in much of our daily life. When we buy cars based on miles per gallon, when we evaluate soccer players based on goals per game, or target per shoots and so on. All these ratios allow us to compare performance.
Financial ratios serve the same purpose, but it is important to understand what is being measured in order to understand the results and make judgments. It seems logical that only companies within a same industry can be compared in order to make accurate assumptions or forecasts. Some ratios would be able to show more efficiency but some times its just different ways of doing business. In the first part we are going to analyze Coca-Cola's financial ratios. Secondly, we will analyze Pepsi's financial ratios. Finally, in the third and last part we will compare both companies' ratios. Let us now see Coca-Cola's financial ratios.
