Evaluating Operating Performance and Efficiency Information is provided below for Coca Cola Company and PepsiCo, Inc., for the years 1999–2001.
|
Coca Cola |
PepsiCo |
|||||
|
(In millions) |
2001 |
2000 |
1999 |
2001 |
2000 |
1999 |
|
Net sales |
$20,092 |
$19,889 |
$19,284 |
$26,935 |
$25,479 |
$25,093 |
|
Gross profit |
14,048 |
13,685 |
13,275 |
16,181 |
15,253 |
14,767 |
|
Operating profit |
5,352 |
3,691 |
3,982 |
4,021 |
3,818 |
3,483 |
|
Net income |
3,969 |
2,177 |
2,431 |
2,662 |
2,543 |
2,505 |
Required
A. Compute the three ratios that reflect operating efficiency.
B. Discuss the operating performance of Coca Cola and PepsiCo using the information you obtained in part A.