Coke and Pepsi are well-known international brands. Coca-Cola Co. sells more than $34.5 billion each year while annual s
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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 s
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 PepsiCo a. Gross profit percentage Coca-Cola 61.30% 22.70% b. Net profit margin 55.00% 18.00% e. EPS $ 1.66 $ 8.82 d. Inventory turnover ratio 4.20 8.30 e. Current ratio 0.62 0.95 f. Debt-to-assets 0.76 0.82 9. P/E ratio 32.50 15.50 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. a. Gross profit percentage b. Net profit margin C. EPS d. Inventory turnover ratio e. Current ratio f. Debt-to-assets 9. P/E ratio
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