Pepsi and Coke Financials Essay Example | Topics and Well Written Essays - 500 words

Pepsi and Coke Financials - Essay ExampleIn both ratios, Pepsi emerged to be shining noting that even without its inventories its current assets can more than pay-off all its short-term liabilities. In terms of moving its inventories to the market, Coca-Cola shows advantage because of its lower inventory ratio. Pepsi and Coca-Cola display always the corresponding capital structure with creditors and investors having 50-50 contribution in its assets. It should be noted that both companies have 0.50 debt to equity ratios indicating that there is an equal share between creditors and equity holders. positivity ratios including net profit bank, return on assets, and return on equity shows that Pepsi is performing better. Even though Coca-Cola has a higher net profit margin and a stronger cost management techniques, this is offset by Pepsis higher return on assets and return on equity. It should be noted that the net income of Pepsi generated more grade to the companys resource and in vestors.The higher return on equity has become the primary basis of this recommendation. Realizing that the goal of a business organization is to maximize shareholder wealth, it is all-important(a) that it shows a high return on equity.