*

1. 2. 3. 4.
TYPE OF MARKET. SCALE OF OPERATION. CURRENT MARKET LEADER MAJOR EXPENSES

Ratios
Profitability Ratios Financial Ratios
a) Current Ratio b) Liquidity Ratio c) Debt-Equity Ratio d) Proprietary Ratio e) Current Assets to Fixed Assets Ratio

Turnover Ratios
a) Working Capital Turnover b) Debtors Turnover c) Creditors Turnover d) Stock Turnover e) Fixed Assets Employed f) Sales to Capital Employed

* Gross Profit Ratio * Net Profit Ratio * Operating Profit * * Operating Ratio * Return On Capital
Turnover

* Return on Equity * Return On Total

RATIOS

FROMULA

2009

2010

IDEAL RATIOS

RATINGS

GROSS PROFIT NET PROFIT STOCK TO WORKING CAPITAL RATIO OPERATING PROFIT RATIO

Gross Profit/Net Sales100

Net Profit/Sales100

64.22%

63.85%

22.28% 0.61

33.76%
0.86

CLOSING STOCK\CA-CL

NPAT+TAX+MISC 29.20 EXP W.OFF+NON OP EXPENSES-NON OP EXP/ SALES CA/CL 1.27

41.74

CURRENT RATIO

1.16

RATIOS

FROMULA

2009

2010

IDEAL RATIO S

RATINGS

QUICK RATIO

CA-STOCKPREPAID EXP/ CL

0.94

0.85

DEBTORS TURN OVER RATIO CREDITIORS TURNOVER RATIO STOCK TURN OVER RATIO

CREDIT SALES 7.57 TIMES / AVG DEBTORS

7.93 TIMES 46 DAYS

1.43 TIMES 255 DAYS

48 DAYS
CREDIT 1.43 TIMES PURCHASES/ AVG CREDITORS 255 DAYS RAW MATERIAL CONSUMED / AVG CLOSING STOCKK

RATIOS

FROMULA

2009

2010

IDEAL RATIOS

RATINGS

GROSS PROFIT NET PROFIT STOCK TO WORKING CAPITAL RATIO OPERATING PROFIT RATIO

Gross Profit/Net Sales100

Net Profit/Sales100

53.51

54.05

13.75
0.69

10.93
2.01

CLOSING STOCK\CA-CL

NPAT+TAX+MISC 18.61 EXP W.OFF+NON OP EXPENSES-NON OP EXP/ SALES CA/CL 1.17

14.41

CURRENT RATIO

1.11

RATIOS QUICK RATIO DEBTORS TURN OVER RATIO CREDITIORS TURNOVER RATIO STOCK TURN OVER RATIO

FROMULA CA-STOCKPREPAID EXP/ CL CREDIT SALES / AVG DEBTORS CREDIT PURCHASES/ AVG CREDITORS RAW MATERIAL CONSUMED / AVG CLOSING STOCK

2009 1.00

2010 0.80

IDEAL RATIOS

RATINGS

9.35 TIMES 9.15 TIMES 39 DAYS 40 DAYS

2.47 TIMES 2.43 TIMES 148 DAYS 150 DAYS

RATIOS

FROMULA

2009

2010

IDEAL RATIOS

RATINGS

GROSS PROFIT NET PROFIT STOCK TO WORKING CAPITAL RATIO OPERATING PROFIT RATIO

Gross Profit/Net Sales100

Net Profit/Sales100

59.60

60.20

10 0.61

9.35 -8.41

CLOSING STOCK\CA-CL

NPAT+TAX+MISC 19.61 EXP W.OFF+NON OP EXPENSES-NON OP EXP/ SALES CA/CL 1.49

18.18

CURRENT RATIO

0.97

RATIOS QUICK RATIO DEBTORS TURN OVER RATIO CREDITIORS TURNOVER RATIO STOCK TURN OVER RATIO

FROMULA CA-STOCKPREPAID EXP/ CL CREDIT SALES / AVG DEBTORS CREDIT PURCHASES/ AVG CREDITORS RAW MATERIAL CONSUMED / AVG CLOSING STOCK

2009 1.05

2010 0.70

IDEAL RATIOS

RATINGS

9.66 38 DAYS

9.86 37 DAYS

2.62 TIMES 2.63 TIMES 139 DAYS 138 DAYS

RATIOS

FROMULA

COCO COLA 63.85%

PEPSI

DR.PEPPER

INDUSTRIAL AVG 59.37%

GROSS PROFIT NET PROFIT STOCK TO WORKING CAPITAL RATIO OPERATING PROFIT RATIO

Gross Profit/Net Sales100

Net Profit/Sales10 0

54.05%

60.20%

33.76%

10.93%

9.35%

18.01

CLOSING STOCK\CA-CL

0.86

2.01

-8.41

-1.85

NPAT+TAX+MIS C EXP W.OFF+NON OP EXPENSESNON OP EXP/ SALES CA/CL

41.74

14.41

18.18

24.78

CURRENT RATIO

1.16

1.11

0.97

1.08

RATIOS

FROMULA

COCO COLA

PEPSI

DR.PEPPER

INDUSTRIAL AVG 0.78

CA-STOCKPREPAID EXP/ CL CREDIT SALES DEBTORS TURN OVER / AVG DEBTORS RATIO CREDITIORS CREDIT TURNOVER PURCHASES/ RATIO AVG CREDITORS STOCK COGS/ AVG TURN OVER STOCK RATIO

QUICK RATIO

0.85

0.80

0.70

7.93 TIMES 9.15 TIMES 46 DAYS

1.43 TIMES 255 DAYS 40 DAYS 2.43 TIMES 150 DAYS

9.86 TIMES 37 DAYS 2.63 TIMES 138 DAYS

8.98 TIMES 41 DAYS 2.16 TIMES 169 DAYS

* Recommendations * Coca Cola and Pepsi ,both companies are financially looking sound *

with good profit margins. Recommendations for both companies is given below. Coca Cola although is showing increased profit margin but the revenue is showing a decreased trend which is a cause of concern .It needs to work on methods to increase its revenue. Coca Cola also need to work on reducing its debt. Other factors are increasing which a good signal for the company. Pepsi firstly is showing a slight decrease in current liabilities, which is good needs to work more on it . Likewise Coca Cola the revenue for Pepsi is also decreasing but with a very slight number. Pepsi needs to work on increasing the revenue . The total debt for Pepsi is also decreasing which is a very good signal for the company

* Conclusion * Overall both the companies are doing good

financially , the decreasing trend for revenue is mainly due to the current global economic crises which has affected the profit margins , but a consistency is observed in all the ratios which indicates that the companies according to each ones capability is doing good despite the current economic situation.