This paper concentrates on the primary theme of Liquidity analysis of coke and Pepsi in which you have to explain and evaluate its intricate aspects in detail. In addition to this, this paper has been reviewed and purchased by most of the students hence; it has been rated 4.8 points on the scale of 5 points. Besides, the price of this paper starts from £ 79. For more details and full access to the paper, please refer to the site.
Liquidity analysis of coke and Pepsi
Liquidity & Asset Utilization Ratios Coke Coke Pepsi
2004 2003 2004
Current Ratio
Current Assets 3,264 $3,000.00 $2,039.00 $3,039.00
Current Liabilities $3,431.00 0.95 $3,941.00 0.76 $1,581.00 1.29 $2,478.00
Quick (Acid-Test) Ratio
Current Assets-Inventory $2,501.00 $2,275.00 $1,612.00 $2,665.00
Current Liabilities $3,431.00 0.73 $3,941.00 0.58 $1,581.00 1.02 $2,478.00
Inventory Turnover
Cost of Goods Sold 10,771.00 10,165.00 5,656.00 5,215.00
Average Inventory 744 14.48 722 14.08 401 14.12 376
Average Collection Period
Accounts Receivable 1,927.00 1,787.00 1,115.00 1,066.00
Average Daily Sales 50.44 38 48.14 37 Days 30.29 37 28.51
Total Asset Turnover
Sales 18,158.00 17,330.00 10,906.00 10,265.00
Total Assets 26,354.00 0.69 25,700.00 0.67 10,793.00 1.01 11,544.00
Debt & Interest Coverage Ratios
Debt to Assets Ratio
Total Liabilities 20,882.00 21,335.00 8,844.00 9,663.00
Total Assets 26,354.00 79.2% 25,700.00 83.0% 10,793.00 81.9% 11,544.00
Debt to Equity Ratio
Total Debt 12,572.00 13,665.00 6,070.00 6,971.00
Total Equity 10,177.00 1.24 9,794.00 1.40 5,620.00 1.08 6,462.00
Interest Coverage Ratio
EBIT(Earnings Before Interest & Taxes) 1,436 1,577 976 956
Interest Expense 619 2.32 607 2.60 230 4.24 239
Profitability Ratios
Gross Margin on Sales
Sales-Cost of Sales 7,387.00 7,165.00 5,250.00 5,050.00
Sales 18,158.00 40.7% 17,330.00 41.3% 10,906.00 48.1% 10,265.00
Net Profit Margin
Net Profit after taxes 596.00 676.00 457.00 416.00
Sales 18,158.00 3.3% 17,330.00 3.9% 10,906.00 4.2% 10,265.00
Market Based Ratio
Price-Earnings Ratio
Current Market Value of Common Stock 18.94 29.09
Earnings Per Share (EPS) 1.28 14.80 1.48 - 1.79 16.25 1.54
Based on the attached financial and ratio, make recommendations to management regarding their cash management.