Financial Analysis

1012 WordsAug 27, 20135 Pages
Financial Analysis | 1 Financial Analysis Jessica Thompson XACC/280 January 9, 2013 Joan Fifelski Financial Analysis | 2 Coca Cola and Pepsi Co. are huge companies known for both of their products worldwide. Both of these companies have been known for their soft drinks and flavored waters for many centuries now. When people think about each company, there is definitely a rival between the two. The operations of these companies go beyond national boundaries. Products from both companies are likeable and attract people from all over the world to keep buying and having their products in every household every day. Both companies parallel products and services .Each company has manufacturing plant in a lot of countries from around the globe. Competition is very high between the two. The reason for that is because if Pepsi launches a new product and commercial then Coca Cola is going to follow to keep up with its competitor. The main purpose for this paper is to show the financial comparison between both companies. It is also to show if someone were to invest into one business which one would be the best company to invest in and why. The vertical and horizontal analyses of both companies are analyzed. Overall, it is to give an outlook at every aspect of each company. There are a lot of different tools that are used to evaluate financial statement data. The three most used which included; horizontal analysis, vertical analysis, and ratio analysis. Each tool has its own purpose and function. Horizontal analysis evaluates a series of financial statement data over a period of time. Vertical analysis evaluates a financial statement data by expressing each item as a percent of a base amount. Ratio analysis shows the relationship among selected items of a financial statement data. This type of ratio though is used in all three types of comparison. Companies use

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