Question: Using the profitability and operating performance ratios, discuss what conclusions you can make about each company's profits over the past three years. Support your conclusions.

Using the profitability and operating performance ratios, discuss what conclusions you can make about each company's profits over the past three years. Support your conclusions. Which company is doing better, why or why not? (PEPSI VS COCA COLA).

Operating performance ratio:

Fixed asset turnover ratio

Pepsi - 3.29

Coke - 3.06

Profitability indicator ratios:

Return on assets

ROA Pepsi - 8.4%

ROA Coke - 9.84%

Return on equity

ROE Pepsi - 55.5%

ROE Coke - 43.2%

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