Question: Part I: Financial Statement Analysis [60 marks] You are required to apply the tools of analysis learnt in the course to analyze and assess the

Part I: Financial Statement Analysis [60 marks]

You are required to apply the tools of analysis learnt in the course to analyze and assess the financial performance of The Coca-Cola Company and PepsiCo, Inc. for the years 2016 2018.

Requirement (1):

Compute and classify the following financial ratios for each company for the fiscal years 2016, 2017, and 2018 based on their respective annual reports. [15 marks]

Return on total assets (profitability)

Debt ratio ( solvency)

Profit margin ratio (profitability)

Current ratio (liquidity)

Acid-test ratio (liquidity)

Gross margin ratio (profitability)

Inventory turnover (efficiency)

Days sales in inventory (efficiency)

Accounts receivable turnover (efficiency)

Total asset turnover (efficiency)

Times interest earned (solvency)

Debt-to-equity ratio (solvency)

Book value per ordinary share ( market prospect)

Basic earnings per share (market prospect)

Price-earnings ratio (market prospect)

Dividend yield (Market prospects)

Cash flow on total assets (liquidity)

Part I: Financial Statement Analysis [60 marks] You are required to apply the tools of analysis learnt in the course to analyze and assess the financial performance of The Coca-Cola Company and PepsiCo, Inc. for the years 2016 2018. Requirement (1): Compute and classify the following financial ratios for each company for the fiscal years 2016, 2017, and 2018 based on their respective annual reports. [15 marks] Return on total assets (profitability)

Debt ratio ( solvency) Profit margin ratio (profitability) Current ratio (liquidity) Acid-test

ratio (liquidity) Gross margin ratio (profitability) Inventory turnover (efficiency) Days sales in

inventory (efficiency) Accounts receivable turnover (efficiency) Total asset turnover (efficiency) Times interest

earned (solvency) Debt-to-equity ratio (solvency) Book value per ordinary share ( market

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