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Calculating ROI and ROE Ratios

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The annual reports of the Coca-Cola Co. and PepsiCo, Inc.m, indicate the following for the year ended December 31, 2008 (amounts in millions):

Coca-Cola Co. PepsiCo., Inc.

Net revenues $31,994 $43,251
Net income 5,807 5,142
Total assets, January 1, 2008 43,269 34,628
Total liabilities, January 1, 2008 21,525 17,394
Total liabilties, December 31, 2008 20,047 23,888
Total stockholders' equity, December 31, 2008 20,472 12,203

Required:

(a) Calculate ROI and ROE for each company for 2008.

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Solution Summary

Calculating ROI and ROE Ratios for The Coca-Cola Company and PepsiCo, Inc.

The annual reports of the Coca-Cola Co. and PepsiCo, Inc.m, indicate the following for the year ended December 31, 2008 (amounts in millions):

Coca-Cola Co. PepsiCo., Inc.

Net revenues $31,994 $43,251
Net income 5,807 5,142
Total assets, January 1, 2008 43,269 34,628
Total liabilities, January 1, 2008 21,525 17,394
Total liabilties, December 31, 2008 20,047 23,888
Total stockholders' equity, December 31, 2008 20,472 12,203

Required:

(a) Calculate ROI and ROE for each company for 2008.

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