Case Study Coke Vs Pepsi

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Provide a short background on each company, the industry and the market (growing, declining, etc?) in which they operate. (This should be no more than 1- 1.5 pages for both companies in total and can be a part of your introduction.) While there may be many debates whether Coke is better tasting than Pepsi, there are more underlying factors which prove that Coke if preferred among the larger population in the United States. The numbers cannot lie when an individual compares annual reports from one company to the other. Coca-Cola has always been a long-time competitor to Pepsi and each have attempted to secure an advantage in the public market for their products. Coca-Cola was founded in 1886 from the curiosity of local doctor when an Atlanta pharmacist created a mixture of syrup and carbonated water together and was historically perceived as an excellent combination of taste. The mixture was later trademarked by Frank M. Robinson who was credited in its naming of “Coca-Cola” their trademarked…show more content…
This will be vital information for a stockholder or creditor that would get involved with the company to have. A lender or investor would prefer companies that have enough capital to keep their business running and avoid incurring large debts to do so. For this ratio, the rule would be 1.0 or lower which would be a measured good ratio. Those that go under 0.5 are best. From the Coca-Cola and Pepsi financials statements, we can see that these companies can pay out their current liabilities. Both of them don’t rely on borrowed cash for operating. The debt-to-ratio for both companies are comparative. These organizations have achieved a debt to equity ratio that is lower than what are currently expected by experts. Based on the figures in their financial reports, we can say that each company can cover their

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