Financial Statement Analysis Project

Instructions

Review the financial statement data Download financial statement dataincluded in the provided Coke vs. Pepsi Data file, which includes:

Balance sheets for both companies as of December 31, 2021, 2022, and 2023

Income statements for both companies for the years ending December 31, 2021, 2022 and 2023

Financial statements ratios and trends

Using this information, prepare two separate reports for each of the scenarios below, analyzing and comparing Coke and Pepsi.

These reports must be at least two pages each.  Your reports should fully explain what ratios and trends you used and why they are important in your assessment. You can use any additional information about both companies, but it is not required.

Please include the Excel spreadsheet you used to calculate the ratios in your submission, so I can review your calculations.

Scenarios:

Assume that you are the credit manager for a national bank. Both companies are seeking a significant loan (10% of total assets).  Assess which company would you consider to be the safer credit risk and why.

Exported from Calcbench
Coca Cola Co (KO)
CONSOLIDATED BALANCE SHEETS
Fiscal Period
Period Start
Period End
Statement
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Short-term investments
Total Cash, Cash Equivalents and Short-Term Investments
Marketable securities
Trade accounts receivable, less allowances of $502 and $516, respectively
Inventories
Prepaid expenses and other current assets
Total Current Assets
Equity method investments
Other investments
Other noncurrent assets
Deferred income tax assets
Property, plant and equipment — net
Trademarks with indefinite lives
Goodwill
Other intangible assets
Total Assets
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses
Loans and notes payable
Current maturities of long-term debt
Accrued income taxes
Total Current Liabilities
Long-term debt
Other noncurrent liabilities
Deferred income tax liabilities
THE COCA-COLA COMPANY SHAREOWNERS’ EQUITY
Common stock, $0.25 par value; authorized — 11,200 shares; issued — 7,040 shares
Capital surplus
Reinvested earnings
Accumulated other comprehensive income (loss)
Treasury stock, at cost — 2,732 and 2,712 shares, respectively
Equity Attributable to Shareowners of The Coca-Cola Company
Equity attributable to noncontrolling interests
Total Equity
Total Liabilities and Equity
Y 2023
1/1/2023
12/31/2023
10-K
Y 2022
1/1/2022
12/31/2022
10-K
Y 2021
1/1/2021
12/31/2021
10-K
$9,366,000,000
$2,997,000,000
$12,363,000,000
$1,300,000,000
$3,410,000,000
$4,424,000,000
$5,235,000,000
$26,732,000,000
$19,671,000,000
$118,000,000
$7,162,000,000
$1,561,000,000
$9,236,000,000
$14,349,000,000
$18,358,000,000
$516,000,000
$97,703,000,000
$9,519,000,000
$1,043,000,000
$10,562,000,000
$1,069,000,000
$3,487,000,000
$4,233,000,000
$3,240,000,000
$22,591,000,000
$18,264,000,000
$501,000,000
$6,189,000,000
$1,746,000,000
$9,841,000,000
$14,214,000,000
$18,782,000,000
$635,000,000
$92,763,000,000
$9,684,000,000
$1,242,000,000
$10,926,000,000
$1,699,000,000
$3,512,000,000
$3,414,000,000
$2,994,000,000
$22,545,000,000
$17,598,000,000
$818,000,000
$6,731,000,000
$2,129,000,000
$9,920,000,000
$14,465,000,000
$19,363,000,000
$785,000,000
$94,354,000,000
$15,485,000,000
$4,557,000,000
$1,960,000,000
$1,569,000,000
$23,571,000,000
$35,547,000,000
$8,466,000,000
$2,639,000,000
$15,749,000,000
$2,373,000,000
$399,000,000
$1,203,000,000
$19,724,000,000
$36,377,000,000
$7,922,000,000
$2,914,000,000
$14,619,000,000
$3,307,000,000
$1,338,000,000
$686,000,000
$19,950,000,000
$38,116,000,000
$8,607,000,000
$2,821,000,000
$1,760,000,000
$1,760,000,000
$1,760,000,000
$19,209,000,000
$18,822,000,000
$18,116,000,000
$73,782,000,000
$71,019,000,000
$69,094,000,000
($14,275,000,000) ($14,895,000,000) ($14,330,000,000)
($54,535,000,000) ($52,601,000,000) ($51,641,000,000)
$25,941,000,000
$24,105,000,000
$22,999,000,000
$1,539,000,000
$1,721,000,000
$1,861,000,000
$27,480,000,000
$25,826,000,000
$24,860,000,000
$97,703,000,000
$92,763,000,000
$94,354,000,000
Exported from Calcbench
Coca Cola Co (KO)
CONSOLIDATED STATEMENTS OF INCOME
Fiscal Period
Period Start
Period End
Statement
Net Operating Revenues
Cost of goods sold
Gross Profit
Selling, general and administrative expenses
Other operating charges
Operating Income
Interest income
Interest expense
Equity income (loss) — net
Other income (loss) — net
Income Before Income Taxes
Income taxes
Consolidated Net Income
Net Income (Loss) Attributable to Noncontrolling Interest
Net Income Attributable to Shareowners of The Coca-Cola Company
Basic Net Income Per Share1
Average Shares Outstanding — Basic
Stock Price
Y 2023
1/1/2023
12/31/2023
10-K
Y 2022
1/1/2022
12/31/2022
10-K
Y 2021
1/1/2021
12/31/2021
10-K
$45,754,000,000
$18,520,000,000
$27,234,000,000
$13,972,000,000
$1,951,000,000
$11,311,000,000
$907,000,000
$1,527,000,000
$1,691,000,000
$570,000,000
$12,952,000,000
$2,249,000,000
$10,703,000,000
($11,000,000)
$10,714,000,000
$43,004,000,000
$18,000,000,000
$25,004,000,000
$12,880,000,000
$1,215,000,000
$10,909,000,000
$449,000,000
$882,000,000
$1,472,000,000
($262,000,000)
$11,686,000,000
$2,115,000,000
$9,571,000,000
$29,000,000
$9,542,000,000
$38,655,000,000
$15,357,000,000
$23,298,000,000
$12,144,000,000
$846,000,000
$10,308,000,000
$276,000,000
$1,597,000,000
$1,438,000,000
$2,000,000,000
$12,425,000,000
$2,621,000,000
$9,804,000,000
$33,000,000
$9,771,000,000
$2.48
4,323,000,000
$2.20
4,328,000,000
$2.26
4,315,000,000
$ 58.93
$ 63.61
Exported from Calcbench
Pepsico Inc (PEP)
Consolidated Balance Sheet
Fiscal Period
Period Start
Period End
Y 2023
1/1/2023
12/30/2023
10-K
Y 2022
12/26/2021
12/31/2022
10-K
Y 2021
12/27/2020
12/25/2021
10-K
ASSETS
Cash and cash equivalents
$9,711,000,000
$4,954,000,000
$5,596,000,000
Short-term Investments
$292,000,000
$394,000,000
$392,000,000
Accounts and notes receivable, net
$10,815,000,000
$10,163,000,000
$8,680,000,000
Inventories
$5,334,000,000
$5,222,000,000
$4,347,000,000
Prepaid expenses and other current assets
$798,000,000
$806,000,000
$980,000,000
Disposal Group, Including Discontinued Operation, Assets
$1,788,000,000
Assets, Current
$26,950,000,000
$21,539,000,000
$21,783,000,000
Property, Plant and Equipment, net
$27,039,000,000
$24,291,000,000
$22,407,000,000
Amortizable Intangible Assets, net
$1,199,000,000
$1,277,000,000
$1,538,000,000
Goodwill
$17,728,000,000
$18,202,000,000
$18,381,000,000
Indefinite-lived Intangible Assets (Excluding Goodwill)
$13,730,000,000
$14,309,000,000
$17,127,000,000
Equity Method Investments
$2,714,000,000
$3,073,000,000
$2,350,000,000
Deferred Income Tax Assets, Net
$4,474,000,000
$4,204,000,000
$4,310,000,000
Other Assets
$6,661,000,000
$5,292,000,000
$4,481,000,000
Total Assets
$100,495,000,000
$92,187,000,000
$92,377,000,000
LIABILITIES AND EQUITY
Short-term debt obligations
$6,510,000,000
$3,414,000,000
$4,308,000,000
Accounts payable and other current liabilities
$25,137,000,000
$23,371,000,000
$21,159,000,000
Disposal Group, Including Discontinued Operation, Liabilities
$0
$753,000,000
Liabilities, Current
$31,647,000,000
$26,785,000,000
$26,220,000,000
Long-Term Debt Obligations
$37,595,000,000
$35,657,000,000
$36,026,000,000
Deferred Income Tax Liabilities, Net
$3,895,000,000
$4,133,000,000
$4,826,000,000
Other Liabilities, Noncurrent
$8,721,000,000
$8,339,000,000
$9,154,000,000
Liabilities
$81,858,000,000
$74,914,000,000
$76,226,000,000
PepsiCo Common Shareholders’ Equity
Common stock, par value 12/3¢ per share (authorized 3,600 shares, issued, net
$23,000,000
of repurchased common
$23,000,000
stock at par value:
$23,000,000
1,380 and 1,391 shares, res
Additional Paid in Capital, Common Stock
$4,261,000,000
$4,134,000,000
$4,001,000,000
Retained Earnings (Accumulated Deficit)
$70,035,000,000
$67,800,000,000
$65,165,000,000
Accumulated Other Comprehensive Income (Loss), Net of Tax
($15,534,000,000) ($15,302,000,000) ($14,898,000,000)
Treasury Stock, Value
($40,282,000,000) ($39,506,000,000) ($38,248,000,000)
Stockholders’ Equity Attributable to Parent
$18,503,000,000
$17,149,000,000
$16,043,000,000
Stockholders’ Equity Attributable to Noncontrolling Interest
$134,000,000
$124,000,000
$108,000,000
Total Equity
$18,637,000,000
$17,273,000,000
$16,151,000,000
$ 100,495,000,000
$ 92,187,000,000
$ 92,377,000,000
Liabilities and Equity
Exported from Calcbench
Pepsico Inc (PEP)
Consolidated Statement of Income
Fiscal Period
Period Start
Period End
Net Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Gain associated with the Juice Transaction
Impairment of Intangible Assets (Excluding Goodwill)
Operating Profit
Other pension and retiree medical benefits income
Net interest expense and other
Income before income taxes
Provision for income taxes
Net income
Less: Net income attributable to noncontrolling interests
Net Income Attributable to PepsiCo
Basic Earnings per Share
Stock Price
Y 2023
1/1/2023
12/30/2023
10-K
$91,471,000,000
$41,881,000,000
$49,590,000,000
$36,677,000,000
$0
$927,000,000
$11,986,000,000
$250,000,000
($819,000,000)
$11,417,000,000
$2,262,000,000
$9,155,000,000
$81,000,000
$9,074,000,000
Y 2022
12/26/2021
12/31/2022
10-K
$86,392,000,000
$40,576,000,000
$45,816,000,000
$34,459,000,000
($3,321,000,000)
$3,166,000,000
$11,512,000,000
$132,000,000
($939,000,000)
$10,705,000,000
$1,727,000,000
$8,978,000,000
$68,000,000
$8,910,000,000
Y 2021
12/27/2020
12/25/2021
10-K
$79,474,000,000
$37,075,000,000
$42,399,000,000
$31,237,000,000
$0
$0
$11,162,000,000
$522,000,000
($1,863,000,000)
$9,821,000,000
$2,142,000,000
$7,679,000,000
$61,000,000
$7,618,000,000
$ 6.59
$ 6.45
$ 5.51
$ 169.84
$ 180.66
Dollar and Percentage Change:
Coca Cola
2023 over 2022
Dollar
Change
Percent Change
2022 over 2021
Dollar
Percent
Change
Change
PepsiCo
2023 over 2022
Dollar
Change
Percent Change
2022 over 2021
Dollar
Change
Percent Change
2023
2021
2023
2021
2022
2023
Cash
Total Assets
Revenue
Net Income
Trend Percentages:
Cash
Total Assets
Revenue
Net Income
Ratio Analysis:
Working Capital:
2022
2022
Balances
Trend Percentages
Balances
Trend Percentages
Balances
Trend Percentages
Balances
Trend Percentages
2023
Current Assets
-Current Liabilites
= Working Capital
Current Ratio:
Current Assets
Current Liabilities
Quick Ratio:
Quick Assets
Current Liabilities
Debt Ratio:
Total Liabilities
Total Assets
P/E Ratio
Current Market Price
EPS
Return on Assets:
Net Income
Average Total Assets
Return on Equity:
Net Income
Average Total Equity
2022
Receivables Turnover:
Net Sales
Average Net Trade Receivables
Days Sales Outstanding/
Average Collection Period:
365
Receivables Turnover
Inventory Turnover:
Cost of Goods Sold
Average Inventory
Days Inventory Outstanding
365
Inventory Turnover
Gross Profit Percentage
Gross Profit
Net Sales
Net Income as % of Sales
Net Income
Net Sales