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Summary ASFinancial Statement Analysis Final Paper.docx Financial Statement Analysis Final Paper Principles of Accounting ACC205 Overview The paper will delve into three companies' financials. It will examine three companies Coca Cola, Keurig Dr. Pepper, £3.99   Add to cart

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Summary ASFinancial Statement Analysis Final Paper.docx Financial Statement Analysis Final Paper Principles of Accounting ACC205 Overview The paper will delve into three companies' financials. It will examine three companies Coca Cola, Keurig Dr. Pepper,

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ASFinancial Statement Analysis Final P Financial Statement Analysis Final Paper Principles of Accounting ACC205 Overview The paper will delve into three companies' financials. It will examine three companies Coca Cola, Keurig Dr. Pepper, and the Pepsi Company. To create balance and fairness, ...

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  • January 26, 2021
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Financial Statement Analysis Final Paper




Principles of Accounting ACC205




Overview

The paper will delve into three companies' financials. It will examine three companies

Coca Cola, Keurig Dr. Pepper, and the Pepsi Company. To create balance and fairness, this

,paper will examine 2019 when it comes to the financials. The use of charts will allow for a visual

definition of what transpired in 2019 in the beverage industry. Looking at each company's

current ratio, quick ratio, gross profit percentage, inventory turnover ratio, accounts receivable

turnover, and assets turnover ratio shows how they stack up against each other.

The Coca Cola company was founded in 1892 in Atlanta, Georgia and produces more than 500

different drinks in over 200 countries (CocaCola, nd) and is the king of the beverage industry,

making up 42.5% of the beverage industry(Maverick, 2020). While Coca-Cola is the world's

largest non-alcoholic beverage company, they have tough competition in PepsiCo, Red Bull,

Nestlé, Suntory, Keurig Dr. Pepper, Danone, Unilever, Britvic, Jacobs Douwe Egberts, and

Monster Beverage Corporation (Bhasin, 2020).The produces mostly non-alcholoic drinks with

their headquarters still in their founding city and state of Atlanta, Georgia.

Keurig Dr. Pepper was founded in 1981, but Dr. Pepper has been around way before

Keurig. In fact, Dr. Pepper is the oldest soft drink manufactured in 1885 in Waco, Texas (Dr.

Pepper, nd). As a beverage company, Keurig started by producing coffee, and in 1993 they

completed an acquisition of a brewing machine manufacturer Keurig, Inc. The company saw

record sales and rapid growth, and so on July 9, 2018, they acquired Dr. Pepper Snapple Group.

Pepsi, the soft drink, was started by Caleb Bradham in 1902, but the war put a strain on

the business because of sugar rations that Bradham was forced to sell the business, so on June 8,

1923, it was sold to Craven Holdings Corporation. PepsiCo is a food and snack company that has

been Coca-Cola’s most significant competitor since its inception in 1965. Their headquarters is

in Harrison, New York.

Ratio Analysis

, Current Ratio 2019 Coca Cola Keurig Dr Pepper Pepsi

Ratio 3.8% 1.23% (Macrotrends, 18.82% (WSJ, 2020)

(Macrotrends,2020) 2020)



The current ratio is a measurement that shows a company's ability to cover its short-term

obligations by examining the existing assets against the company's current liabilities. This is an

excellent indicator to investors that the company can get the most out of its current assets on the

balance sheet to satisfy a debt. While each company showed growth in 2019, the Pepsi Company

led the group.

Quick Ratio Coca Cola Keurig Dr Pepper Pepsi

0.76 0.23 (Macrotrend, 0.86 (Macrotrends,

(Macrotrend, 2020) 2020) 2020)



A quick ratio can be a good indicator of a company's short-term liquidity and again show

if they can meet short term obligations. The higher the ratio indicates, the better the position is to

meet that short-term financial obligation. Every industry will vary for several reasons. Product

service companies don't have to stock products like Coca-Cola, Keurig Dr. Pepper, and Pepsi, so

their quick ratio may be higher. Companies should not include payments that they will receive

longer than 120 days out in the quick ratio formula. The information above shows that Pepsi is in

the best position to cover their short-term debt, but one reason Keurig Dr. Pepper is struggling is

because of the Dr. Pepper Acquisition in 2018.



Gross Profit Coca Cola Keurig Dr Pepper Pepsi

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