Cash

Account Receivable
Inventory
Other current assests
Total Current assets

Total Current liabilities

Current Ratio =
(Current Asset/Current Liability)
Change in Current Ratio
% change in Total Current Asset
% change in Total Current Liability

% of Total
2014
Current Asset
13,606
16.952
23,045
28.713
31,087
38.733
12,522
15.602
80,260
100.000

2013
7,669
19,951
31,345
11,909
70,874

245,805

326,203

(80260/245805)
0.327

(70874/326203)
0.217

0.109
13.243
-24.647

% of Total
Current Asset
10.821
28.150
44.226
16.803
100.000

YoY change as % of
Total Current Asset
6.132
0.563
-5.494
-1.201

(in million $)
End of Year
Cash and cash equivalents
Accounts receivable (net)
Inventory
Other current assets
Total current assts

795
2035
898
326
4054

Total current liabilities

2014

1 Net credit sale

2 Cost of Goods sold
3 Net Cash by operating activity

8258
5328
1251

Find the following at the end of year

1 Current Ratio
2 Current Cash Debt coverage
Net cash by operating activity
Average current liability
3 Accounts Receivable Turnover
Net credit sales
Average net account receivable
4 Average Collection Period
5 Inventory Turnover
Cost of Goods sold
Average Inventory
6 Days in Inventory

(in million $)
Beginning of Year
72
1942
900
303
3217
1601

2.013
0.692
1251
1807.5
4.153
8258
1988.5
87.891
5.927
5328
899
61.587

(total current asset/total current liability)

(net cash by operating activity/Average current liabilities)
(given)
(total liability at end of year + total liability at beginning of year)/2
(net credit sales/ average net account receivable)
(given)
(net account receivable at beginning of year+net account receivable at end of year)/2
(365/Accounts receivable turnover)
(cost of goods sold/ average Inventory)
(given)
(Inventory at end of year + Inventory at beginning of year)/2
(365/Inventory Turnover)

Total current assets

Total current liabilities
Net sales
Cost of goods sold
Net income
Average (net) accounts receivable for the year
Average inventories for the year
Average total assets
Average common stockholders' equity
Average current liabilities
Average total liabilities
Total assets
Total liabilities
Income taxes
Interest expense
Net cash provided by operating activities
Capital expenditure
Cash dividends

Coca-Cola
(in million $)
17551
13721
30990
11088
6824
3424
2271
44595
22636
13355
21960
48671
23872
2040
355
8186
1993
3800

Liquidity Ratio
1 Current Ratio
2 Accounts receivable turnover
3 Average collection period
4 Inventory turnover
5 Days in inventory
6 Current cash debt coverage

1.28
9.05
40.33
4.88
74.76
0.61

The current ratio of both Pepsi and Coca Cola are at good level and they do not point
Financial leverage is limited. However, Coca Cola is better in managing its inventory
Solvency
1 Debt to assets ratio
2 Times interest earned
3 Cash debt coverage
4 Free cash flow

0.49
25.97
0.37
2393000000

Both the companies are very solvent and are in no risk of insolvency. However, relativ

Profitability
1 Profit Margin

0.22

2 Asset Turnover
3 Return on assets
4 Return on common stockholders' equity

0.69
0.15
0.30

While Coca Cola is more profitable (but less efficient given low Asset Turnover), its RO

PepsiCo
(in million $)
12571
8756
43232
20099
5946
4654
2570
37921
14556
8772
23466
39848
23044
2100
397
6796
2128
2732

1.44
9.29
39.29
7.82
46.67
0.77

and they do not point to any liquidity crunch in short term for either companies.
anaging its inventory as its inventory turnover at 4.88 days is significantly better than Pepsi.

0.58
21.27
0.29
1936000000

ency. However, relatively speaking, solvency condition of Coca Cola is better than Pepsi.

0.14

1.14
0.16
0.41

Asset Turnover), its ROE is significantly less than that of PEPSI

(Total current assets/total current liabilities)

(Net sales/average (net) accounts receivable for the year)
(365/Accounts receivable turnover)
(Cost of goods sold/Average inventories for the year)
(365/Inventory Turnover)
(Net cash from operating activities/Average current liabilities)

nt to any liquidity crunch in short term for either companies.

ry as its inventory turnover at 4.88 days is significantly better than Pepsi.

(Total liability/Total assets)

(Net income+ Interest Expense + Income Taxes)/(Interest expense)
(Net cash from operating activities/averge total liabilities)
(Net cash from operating activities-capital expenditure-cash dividends)

tively speaking, solvency condition of Coca Cola is better than Pepsi.

(net income/net sales)

(net sales/average total assets)

(net income/average total assets)
(net income/average common stockholders' equity)

ROE is significantly less than that of PEPSI