Question

Coca Cola vs Pepsi Cola

The above chart reflects the inventory turnover for Coca Cola (in blue) and Pepsi Cola (in red) for 2014 through 2018. The inventory turnover is calculated by dividing the cost of goods sold (or sales) by the average inventory. It is a measure of the speed at which inventory is sold. The ratio for Coca Cola fell between 5.61 in 2014 and 4.34 in 2018. The average inventory turnover value for Coca Cola over the five-year period was 5.33. The ratio of Pepsi Cola fell between 9.43 in 2014 and 9.67 in 2018. The average inventory turnover value for Pepsi Cola over the five-year period was 9.86. Pepsi Cola experienced an inventory turnover ratio that was 85% higher than that of Coca Cola.

The chart above reflects the days in inventory for Coca Cola (in blue) and Pepsi Cola (in red) for 2014 through 2018. The days in inventory is a measure of the number of days it takes to sell inventory. The number of days in inventory for Coca Cola fell between 65 days in 2014 and 84 days in 2018. The average number of days in inventory for Coca Cola over the five-year period was 69 days. The number of days in inventory for Pepsi Cola fell between 39 in 2014 and 38 in 2018. The average number of days in inventory for Pepsi Cola over the five-year period was 37 days.

The above chart reflects the accounts receivable turnover for Coca Cola (in blue) and Pepsi Cola (in red) for 2014 through 2018. The accounts receivable turnover is calculated by dividing net sales by the average accounts receivable. This ratio is a measure of the speed at which accounts receivable turn over. The ratio for Coca Cola fell between 9.85 in 2014 and 9.02 in 2018. The average accounts receivable turnover value for Coca Cola over the five-year period was 9.91. The ratio of Pepsi Cola fell between 11.12 in 2014 and 12.75 in 2018. The average inventory turnover value for Pepsi Cola over the five-year period was 11.02. Pepsi Cola experienced an inventory turnover ratio that was 11% higher than that of Coca Cola.

  

The chart above reflects the days in accounts receivable for Coca Cola (in blue) and Pepsi Cola (in red) for 2014 through 2018. The days in accounts receivable is a measure of the number of days it takes to collect accounts receivable. The number of days in accounts receivable for Coca Cola fell between 37.05 days in 2014 and 40.46 days in 2018. The average number of days in inventory for Coca Cola over the five-year period was 37 days. The number of days in accounts receivable for Pepsi Cola fell between 32.83 in 2014 and 33.97 in 2018. The average number of days in accounts receivable for Pepsi Cola over the five-year period was 33.13 days.

FINAL – PART ONE

Refer to document : Other Financial Data – Coca Cola and Pepsi Cola:

to answer the following:

•The price earnings ratio for Coca Cola is and for Pepsi cola is ______.

Based on this price ratio only, all other things about the companies being the same, which stock is a better bargain? ________. Given a choice, which stock would you buy? _______ Why?

•List the Operating Revenue for Coca Cola and Pepsi Cola for 2018, 2017 and 2016.

Calculate the Year to Year percentage increase in Operating Revenue for each company:

•List the Earnings per Share for Coca Cola and Pepsi Cola for 2018, 2017 and 2016.

Calculate the Year to Year percentage increase in Earnings per Share for each company:

•Common Stock Outstanding as of 2018 for Coca Cola equals _______ issued shares less _______ treasury shares.

•Common Stock Outstanding as of 2018 for Pepsi Cola equals _______ issued shares less _______ treasury shares.

•What was the estimated average cost of the treasury stock of Coca Cola as of FY2018?

•What was the estimated average cost of the treasury stock of Pepsi Cola as of FY2018?

•a. What is the par value of Coca Cola common stock?

b. What is the recent price of Coca Cola Common stock?

c. What is the estimated book value of Coca Cola Common Stock as FY2018?

•a. What is the par value of Pepsi Cola common stock?

b. What is the recent price of Pepsi Cola Common stock?

c. What is the estimated book value of Pepsi Cola Common Stock as FY2018? Divide by 1,409 Shares.

•Complete the following for Coca Cola and Pepsi Cola for FY2018:

a.Coke: Cur Debt ______+ L/T Debt ______+ Def Tx $1,933+ OL $1,738= Total Debt________.

b.Pepsi: Cur Debt _____ +L/T Debt _______+ Def Tx $3499+ OL $9,114 = Total Debt________.

•Coke: Tot Debt ________+Tot EQ to Com. _______+ Tot EQ to non Cont______= TA $83,216

•Pepsi : Tot Debt ________+Tot EQ to Com. _______+ Tot EQ to non Cont______= TA $77,648

•Coke : FY2018 Current Debt = _______% of Total Debt, LTDebt = _______% of Total Debt.

•Pepsi : FY2018 Current Debt = _______% of Total Debt, LTDebt = _______% of Total De

•Which operating segment of Coca Cola generated the largest operating revenue in FY2018?

•Which operating segment of Pepsi Cola generated the largest operating revenue in FY2018?