Required information

Skip to question

Benchmark Assignment - Coca-Cola Co. & Pepsico Inc.

You will need to use the data below from the two companies to calculate problems and answer the following questions:

	Coca-Cola Co. (in millions)	Pepsico Inc. (in millions)
Net Revenue (Sales)	$38,655	$79,474
Net Income	$9,771	$7,618
Current Assets	$22,545	$21,783
Current Liabilities	$19,950	$26,220
Cash & Cash Equivalents	$12,625	$5,988
Accounts (Trade) Receivables	$3,512	$8,680
Total Assets (12/31/21)	$94,354	$92,377
Total Assets (12/31/20)	$87,296	$92,918
Total Liabilities (12/31/21)	$69,494	$76,226
Stockholders Equity (12/31/21)	$23,000	$16,043
Stockholders Equity (12/31/20)	$19,300	$13,454

In 100-150 words, based on your calculations in (a) and (b), contrast and compare each companys profitability in relation to each other and to the industry, including a brief discussion of why evaluating a companys profitability requires more than just comparing net incomes. Assume the following industry averages: ROI = 5.4%; ROE = 12.9%. Also explain why an investor might be particularly interested in a companys ROE.