FINANCIAL ANALYSIS

Financial Analysis - Pepsi vs. Coca Cola

Financial Analysis - Pepsi vs. Coca Cola

PART I

Pepsi Co.

“Pop, Fizz, Tingle”-- the feeling that the world's consumers receive when they pop up Pepsi. Many of the drink without even realizing it, the drink became so popular, or as PepsiCo, originating in 1919, have found success (Story Pepsi, 2011). Pepsi Company has adopted the same path that led from its inception in the United States on the lands of the Far East and beyond. On the Road PepsiCo faced several challenges, including making its drinks more appealing to a diverse world and to respond adequately economic forces. However, PepsiCo has remained flexible, innovative and adaptable over the years. He knows what consumers want, and it takes responsibility for those it serves: consumers, shareholders and stakeholders. In all these things, prosperity has become a shadow of PepsiCo: as evidenced company's annual SEC Form 10-K for 2008 and 2009.

PepsiCo and Financial Reporting

Undoubtedly, consumers and investors are interested in knowing the financial stability of the company before investing in your product. After the stock market crash and Great Depression, the Securities Act of 1933 requires that all actions issued to the public ... and open the file ... Certain financial information "(Ainsworth and Deines, 2011, p.15). Consequently, companies must also follow GAAP or generally accepted accounting principles. This ensures that commercial transactions properly recorded and reported. Forensic accounting principal method of ensuring "the necessary information to regulatory bodies such as the Securities and Exchange Commission and others (Ainsworth and Deines, 2011, p.4). PepsiCo to ensure that consumers and investors have access to this vital information has grown to become "the world's leading snack and beverage of convenience" (History of Pepsi, 2011). PepsiCo raised 3 units of 5 units (See Exhibit A).

Exhibit A: Divisions of PepsiCo, (PepsiCo, 10-K, 2010)

In most recent SEC 10-K of PepsiCo, filed February 22, 2010- ending December 26, 2009, it is found that Pepsi holds 23% of U.S. market share in beverage category and 40% of retail sales in snack category (See Exhibit B). This is the huge portion of snack/beverage market. However, this data may not include PepsiCo's entire market share, as one of its largest purchasers is Wal-Mart and does not report to PepsiCo's regulatory accountant (PepsiCo, 10-K, 2010). Nonetheless, with 174,200 shareholders, PepsiCo has won faith of many investors (PepsiCo, 10-K, 2010).

Exhibit B: PepsiCo's Market Share, (PepsiCo, 10-K, 2010)

PepsiCo's Balance Sheet & Income Statement (2008-2009)

PepsiCo, OSA net sales and operating earnings of the data revealed that the company ended 2009 with net sales of over $ 43 billion and total Operating profit of $ 8 billion (see the Annex & B). However, in 2008, the company saw a slight decline in net sales and operating income of 3%. This resulted in $ 2.5 billion paid to shareholders in 2008 against $ 2.7 billion paid in 2009 (PepsiCo, 10-K, 2010). Fortunately, 2009 was the turnaround year for PepsiCo. However, PepsiCo is not guaranteed to continue its high success in the ...