The table below shows 2016 total revenues, cost of goods sold, earnings available for common stockholders, total assets, and stockholders’ equity for three companies competing in the bottled drinks market: The Coca-Cola Company, Pepsico Inc., and Dr Pepper Snapple Group. All dollar values are in thousands.

a. Use the information given to analyze each firm’s profitability in as many different ways as you can. Which company is most profitable? Why is this question difficult to answer?
b. For each company, ROE > ROA. Why is that so? Look at the difference between ROE and ROA for each company. Does that difference help you determine which firm uses the highest percentage of debt to finance its activities?

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Dr Pepper Pepsico Coca-Cola Revenues $41,863 $62,799 $6,440 2,582 16,465 16,465 Cost of goods sold Earnings Total assets Shareholders equity 28,209 6,329 847 6,527 9,791 87,270 23,062 74,129 11,246 2,134