Financial Review and Comparison Research Paper Example | Topics and Well Written Essays - 1250 words

pecuniary Review and Comparison - Research Paper ExampleFor the purpose of this assignment I have chosen PepsiCo Inc and the Coca-Cola Company. Both are glob in ally well recognized brands in beverage industry. Besides beverage brands, both(prenominal) the companies are offering additional products. Pepsi incorpo balancen has established itself as a supplier of quality snacks products such(prenominal) as Lays and Cheetos on the other hand the Coca-Cola Company is offering brand in mineral irrigate such as Kinley in competition to Aquafina, a mineral water product by Pepsi, payoff juices such as Pulpy Orange, coffee and other alcohol-free beverages. The performance of both competitors in the year 2012 has been analyse with the help of the key proportions.Net profit margin is computed as net profit to sales, and sometimes likewise profit after tax to sales. It is always measured in cost of percentage. This symmetry represents the ability of the caution to provide the investor s with a reasonable return on their investments (Mohapatra). A higher net profit ratio indicates the efficiency of the management to control the be. When comparing both the companies on the basis of net profit ratio the Coca-Cola Company has generated 2.64% addition net profit than Pepsi which indicate better slightly tight control oer costs.Gross profit can be defined as the profit remaining after all the directly related cost of sales or services have been deducted from the revenue enhancement. Directly attributable cost include only those cost which are necessary to produce the goods. It is also represented in terms of percentage. The higher the ratio the better is for the company (Gildersleeve). It is an important profitability ratio which indicates the margin between the revenue and the cost of the product. On the basis of gross profit margin Pepsi is much better than Coca-Cola. The GP ratio of Pepsi is 52.49% in comparison to the 44.09% in case of Coca-Cola. This reveals an important fact that the Pepsi Company is better in autocratic manufacturing cost and the Coca-Cola Company