Coke and Pepsi are well-known international brands. Coca-Cola Co. sells more than $34.5 billion each year while annual sales ofPepsiCo products exceed $66 billion. Compare the two companies as a potential investment based on the following ratios as reportedby csimarket.com for the twelve months ended September 27, 2019:RatioPepsiCoa. Gross profit percentageCoca-Cola61.30%22.70%b. Net profit margin55.00%18.00%e. EPS$ 1.66$ 8.82d. Inventory turnover ratio4.208.30e. Current ratio0.620.95f. Debt-to-assets0.760.829. P/E ratio32.5015.50Required: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.a. Gross profit percentageb. Net profit marginC. EPSd. Inventory turnover ratioe. Current ratiof. Debt-to-assets9. P/E ratio

The profitability ratio represents the profit of the company relative to the balance sheet, income,…

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: Natio Coca-Cola PepsiCo 61.30% 55.00% a. Gross profit percentage b. Net profit margin e. EPS 22.70% 18.808 d. Inventory turnover ratio e. Current ratio f. Debt-to-assets 9. P/E ratio $ 1.66 4.20 0.62 0.76 32.50 $ 8.82 8.30 0.95 0.82 15.50

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: Natio Coca-Cola PepsiCo 61.30% 55.00% a. Gross profit percentage b. Net profit margin e. EPS 22.70% 18.808 d. Inventory turnover ratio e. Current ratio f. Debt-to-assets 9. P/E ratio $ 1.66 4.20 0.62 0.76 32.50 $ 8.82 8.30 0.95 0.82 15.50

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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