Comparative Analysis Case
The Coca-Cola Company and PepsiCo. Inc
Instructions: Go to the book’s companion website and use information found there to answer the following questions related to The Coca-Cola Company and PepsiCo. Inc,
(a) What format(s) did these companies use to present their balance sheets?
(b) How much working capital did each of these companies have at the end of 2009? Speculate as to their rationale for the amount of working capital they maintain.
(c) What is the most significant difference in the asset structure of the two companies? What causes this difference?
(d) What are the companies’ annual and 5-years (2005-2009) growth rates in total assets and long-term debt?
(e) What was these two companies’ trends in net cash provided by operating activities over the period 2007 to 2009?
(f) Compute both companies’ (1) current cash debt coverage ratio. (2) cash debt coverage ratio, and (3) free cash flow. What do these ratios indicate about the financial condition of the two companies?