Coke and Pepsi are well-known International brands. Coca-Cola Co. sells more than $34.5 billion each year...

    

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Coke and Pepsi are well-known International brands. Coca-Cola Co. sells more than $34.5 billion each year while annual sales of PepsiCo products exceed $66 billion. Compare the two companies as a potential Investment based on the following ratios as reported: by csimarket.com for the twelve months ended September 27, 2019: Ratio a. Gross profit percentage b. Net profit margin c. EPS d. Inventory turnover ratio e. Current ratio f. Debt-to-assets 8. P/E ratio a Gross profit percentage b. Net profit margin c. EPS d Inventory turnover ratio e. Current ratio Coca-Cola 61.30% 22.70% f Debt-to-assets g. P/E ratio $1.66 4.20 8.62 0.76 32.50 PepsiCo 55.00% 18.80% Required: 1. For each ratio listed, indicate whether it would be used to compare profitability, liquidity, or solvency, or whether it is not applicable (NA) to comparing companies. $ 8.82 8.30 0.95 0.82 15.50 2. Which company appears more profitable? 3. Which company appears more liquid? 4. Which company appears more solvent? Coke and Pepsi are well-known International brands. Coca-Cola Co. sells more than $34.5 billion each year while annual sales of PepsiCo products exceed $66 billion. Compare the two companies as a potential Investment based on the following ratios as reported: by csimarket.com for the twelve months ended September 27, 2019: Ratio a. Gross profit percentage b. Net profit margin c. EPS d. Inventory turnover ratio e. Current ratio f. Debt-to-assets 8. P/E ratio a Gross profit percentage b. Net profit margin c. EPS d Inventory turnover ratio e. Current ratio Coca-Cola 61.30% 22.70% f Debt-to-assets g. P/E ratio $1.66 4.20 8.62 0.76 32.50 PepsiCo 55.00% 18.80% Required: 1. For each ratio listed, indicate whether it would be used to compare profitability, liquidity, or solvency, or whether it is not applicable (NA) to comparing companies. $ 8.82 8.30 0.95 0.82 15.50 2. Which company appears more profitable? 3. Which company appears more liquid? 4. Which company appears more solvent?

Answer rating: 100% (QA)

Here is a breakdown of the ratios and their applicability to comparing companies 1 For each ratio li... View the full answer