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    Coca cola / pepsi financial performance

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    Evaluate both Coca-Cola and Pepsi's financial performance for the two most recent years available by (2) performing trend analysis on those financial ratios, and (3) comparing and contrasting the findings in essay form. Be sure to include a citation and reference the source of your financial information. A copy of the financial information can be attached, a URL provided, or re-created. Your analysis should include:

    5) Times interest earned

    6) Debt-to-equity ratio


    b. For both of these years and companies:

    Make recommendations as to how the company could better manage
    its cash flows in the future.

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    Solution Preview

    Please see attached file.

    My comments

    Financial statements are useful tools for evaluating both profitability and liquidity. Used separately, or in combination, the income statement and balance sheet help interested parties to measure a company's current financial performance, and to forecast its profit and cash flow potential. Many different users have need for accounting information in order to make important decisions. These users include investors, creditors, management, governmental agencies, labor unions, and others. Because the primary role of accounting information is to provide useful information for decision-making purposes, it is sometimes referred to as a means to an end, with the end being the decision that is helped by the availability of accounting information. Investors and other stakeholders in the firm need regular financial information to help them monitor the firm's progress.
    The above ratios are concerned with the solvency position of the ...

    Solution Summary

    A comparison of the financial performance of Coca Cola and Pepsi.