and Pepsi hal brar PepsiCo products exceed $66 billion. Compare the two companies as a potential investm by csimarket.com for the twelve months ended September 27, 2019: Ratio a. Gross profit percentage b. Net profit margin c. EPS d. Inventory turnover ratio e. Current ratio f. Debt-to-assets g. P/E ratio Coca-Cola 61.30% 22.70% a. Gross profit percentage b. Net profit margin C FPS $ 1.66 4.20 0.62 0.76 32.50 PepsiCo 55.00% 18.80% $ 8.82 8.30 0.95 0.82 15.50 Required: 1. For each ratio listed, indicate whether it would be used to compare profitability, liquidity (NA) to comparing companies.

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter15: Financial Statement Analysis
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Coke and Pepsi are well-known international brands. Coca-Cola Co. sells more than $34.5 billion each year while annual sales of
PepsiCo products exceed $66 billion. Compare the two companies as a potential investment based on the following ratios as reported
by csimarket.com for the twelve months ended September 27, 2019:
Ratio
a. Gross profit percentage
b. Net profit margin
c. EPS
d. Inventory turnover ratio
e. Current ratio.
f. Debt-to-assets
g. P/E ratio
a. Gross profit percentage
b. Net profit margin
c. EPS
Coca-Cola
61.30%
22.70%
$ 1.66
4.20
0.62
0.76
32.50
d. Inventory turnover ratio
e. Current ratio
f. Debt-to-assets
g. P/E ratio
PepsiCo
55.00%
18.80%
$ 8.82
8.30
Required:
1. For each ratio listed, indicate whether it would be used to compare profitability, liquidity, or solvency, or whether it is not applicable
(NA) to comparing companies.
0.95
0.82
15.50
Transcribed Image Text:Coke and Pepsi are well-known international brands. Coca-Cola Co. sells more than $34.5 billion each year while annual sales of PepsiCo products exceed $66 billion. Compare the two companies as a potential investment based on the following ratios as reported by csimarket.com for the twelve months ended September 27, 2019: Ratio a. Gross profit percentage b. Net profit margin c. EPS d. Inventory turnover ratio e. Current ratio. f. Debt-to-assets g. P/E ratio a. Gross profit percentage b. Net profit margin c. EPS Coca-Cola 61.30% 22.70% $ 1.66 4.20 0.62 0.76 32.50 d. Inventory turnover ratio e. Current ratio f. Debt-to-assets g. P/E ratio PepsiCo 55.00% 18.80% $ 8.82 8.30 Required: 1. For each ratio listed, indicate whether it would be used to compare profitability, liquidity, or solvency, or whether it is not applicable (NA) to comparing companies. 0.95 0.82 15.50
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