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Analysis of Coca-cola and Pepsi through the Solvency Ratios

Given the following data, prepare a solvency analysis of Coca-cola and PepsiCo.

Coca-Cola PepsiCo
Total current asset $ 12,094 $ 8,639
Total current liabilities 10,971 6,752
Net sales 21,962 29,261
Cost of goods sold 7,638 13,406
Net income 4,847 4,212
Average (net) receivables for the year 2,131 2,915
Average inventories for the year 1,336 1,477
Average total assets 29,335 26,657
Average common stockholders' equity 15,013 12,734
Average current liabilities 9,429 6,584
Average total liabilities 14,322 27,917
Total assets 31,327 27,987
Total liabilities 15,392 14,464
Income taxes 1,375 1,372
Interest expense 196 167
Cash provided by operating activities 5,968 5,054
Capital expenditures 755 1,387
Cash dividends 2,429 1,329

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The solution analyses the performance of both PepsiCo and Coca-cola through ratios.

Ratios express a relationship between two values. The ratios, calculated and compared, are the solvency ratios

$2.19