Compare Pepsi and Coca-cola's two most recent fiscal years
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I need to compare Pepsi and Coca-Cola's two most recent fiscal years based upon operating profitability, asset utilization and risk management. I have already completed asset utilization and risk management. What I need help with is operating profitability and a brief introduction.
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I need to compare Pepsi and Coca-Cola's two most recent fiscal years based upon operating profitability, asset utilization and risk management. I have already completed asset utilization and risk management. What I need help with is operating profitability and a brief introduction.
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Coca-Cola generates the lion's share of its revenues by selling concentrate globally in comparison to PepsiCo's business which is approximately 65% food. However, despite the differences, the two companies exhibit a high correlation. Coca-Cola is much more exposed to currency fluctuation since it derives 75% of its revenue internationally, while PepsiCo, having a large food business, has to deal with the vagaries in the commodities market.
Let's take a look at the financial ratios for Pepsico and Coca-Cola in the last year: Two common measures of profitability are the net profit margin and the return on assets ratios. Each provides a different perspective about the firm's profits.
To measure the profitability of a company's operations, you calculate the net profit margin (NPM) by dividing "net income" with "sales". Both entries come from the ...
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