COCA COLA FINANCIAL REPORT

Industry

Coca Cola is the leading company in the beverage industry worldwide

The revenue of the company increased in 2012 as compared to that reported in 2012

2011 revenue was $46,542 million For 2012, the company generated $48,017 million in

revenue The growth of the company is attributed to the

growth of the international market (Yahoo Finance, 2013)

Industry (Continued)

The company manufactures and markets carbonated drinks

The main financial strength of the company is the wide range of products produced by the company

The company is however threatened by stiff competition in the industry

Competitors (PepsiCo)

The company has several competitors in the industry

The main competitor is PepsiCo Unlike Coca Cola, PepsiCo markets other

products in addition to carbonated drinks (Yahoo Finance, 2013b)

The company’s revenue has grown significantly since 2009 (PepsiCo Annual Report 2012)

PepsiCo (continued)

The revenue in 2012 was $65,492 million and in 2012, the revenues increased to $65,821 million

The company’s main financial strength is the diversification of the products (Coca Cola Annual Report 2011 & 2012)

Profitability

The profitability ratio for Coca Cola is much higher than that of PepsiCo despite the revenue differences

The Earn Before Interests and after Tax Coca Cola 2011

EBIT = 46,542million -36,369 million = $10,173 million Coca Cola 2012

EBIT = 48,017 – 37,238 = $10,779 million PepsiCo 2011

EBIT = 65,492 - 56,871,000 =$8,621 million PepsiCo 2012

EBIT = 65,821,000 - 56,380,000 = $9,441 million

2009-2012 profitability comparison

Efficiency Ratio

Coca Cola 201129,507,000,000 / 46,542,000,000 = 0.633

Coca cola 201230,730,000,000 / 48,017,000,000 = 0.64

PepsiCo 201131,593,000,000 / 65,492,000,000 = 0.48

PepsiCo 2012 31,291,000,000 /65,821,000,000 = 0.47

Efficiency

From the above ratios Coca Cola can generate more income

than PepsiCo (PepsiCo and Coca Cola annual Reports 2011 & 2012)

Liquidity

Coca cola 20112,230 / 3,171 = 0.70

Coca Cola 2012 2,322 / 3,723 = 0.62

PepsiCo 201117,441 /18,154 = 0.96

PepsiCo 2012 17,089 / 18,720 = 0.91

Liquidity

From the ratios above: PepsiCo is has more ability to service

short-term debts than Coca Cola Coca Cola’s ability to service short-term

debts is fairly normal since the ratios are more than 0.5

Gearing ratio

Coca Cola 20113,012 / 9,094 = 0.33

Coca Cola 20123,466 / 9,510 = 0.36

PepsiCo 201151,982 / 72,882 = 0.71

PepsiCo 2012 52,239 / 74,638 = 0.69

Gearing

Coca Cola has more debts than PepsiCo Additionally, the total assets for PepsiCo

are more than Coca Cola’s

Investor ratio

Coca Cola 20118646 / 2693 = 3.2

Coca Cola 20129086 / 2899 = 3.1

PepsiCo 20116462 / 2417 = 2.6

PepsiCo 20126214 / 2704 = 2.3

Investor

There are more investors in Coca Cola than in PepsiCo

The share price for Coca Cola is lower than that of PepsiCo

References

Coca Cola Annual Report (2011). Retrieved from: http://ir.cokecce.com/phoenix.zhtml?c=117435&p=irol-reportsannual

Coca Cola Annual Report (2012). Retrieved from: http://ir.cokecce.com/phoenix.zhtml?c=117435&p=irol-reportsannual

PepsiCo Annual Report (2011). Retrieved from: http://www.pepsico.com/annual11/download s/

pep_ar11_2011_annual_report.pdf PepsiCo Annual Report (2012). Retrieved from:

www.pepsico.com/download/PEP_Annual_Report_2012.pdf

References

PepsiCo Annual Report (2012). Retrieved from: www.pepsico.com/download/PEP_Annual_Re

port_2012.pdf PepsiCo. (2012. Performance with Purpose.

Retrieved from: http://www.pepsico.com/Purpose/Performanc e-

with-Purpose/Financial-Highlights.html Yahoo Finance. (2013). The Coca-Cola Company.

Retrieved from: http://finance.yahoo.com/q/pr?s=KO

Yahoo Finance (2013b). Pepsico, Inc. Retrieved from: http://finance.yahoo.com/q/pr?s=PEP