Coca cola vs pepsi financial analysis 2013

The financial statements of Coca-Cola and PepsiCo are presented in Appendices C and D , respectively. The companies' complete annual reports, including the notes to the financial statements, are available online. Stock price data can be found in the company's annual 10K, filed at the SEC.

Instructions

Use the companies' financial information to answer the following questions.

(a)What is the par or stated value of Coca-Cola's and PepsiCo's common or capital stock?

(b)What percentage of authorized shares was issued by Coca-Cola at December 31, 2014, and by PepsiCo at December 31, 2014?

(c)How many shares are held as treasury stock by Coca-Cola at December 31, 2014, and by PepsiCo at December 31, 2014?

(d)How many Coca-Cola common shares are outstanding at December 31, 2014? How many PepsiCo shares of capital stock are outstanding at December 31, 2014?

(e)What amounts of cash dividends per share were declared by Coca-Cola and PepsiCo in 2014? What were the dollar amount effects of the cash dividends on each company's stockholders' equity?

(f)What are Coca-Cola's and PepsiCo's return on common/capital stockholders' equity for 2014 and 2013? Which company gets the higher return on the equity of its shareholders?

(g)What are Coca-Cola's and PepsiCo's payout ratios for 2014?

(h)What was the market price range (high/low) for Coca-Cola's common stock and PepsiCo's capital stock during the fourth quarter of 2014? Which company's (Coca-Cola's or PepsiCo's) stock price increased more (%) during 2014?

Appendice C

The Coca-Cola Company is the world's largest beverage company. It owns or licenses and markets more than 500 nonalcoholic beverage brands, primarily sparkling beverages, but also a variety of still beverages such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. Finished beverage products bearing Coca-Cola trademarks, sold in the United States since 1886, are now available in more than 200 countries. To access Coca-Cola's complete annual report, including notes to the financial statements, follow these steps:

1. Go to http://www.coca-colacompany.com/investors/ .

2. Select Financial Reports and Information and then click on 2014 Annual Report on Form 10-K.

3. The Notes to Consolidated Financial Statements begin on page 78.

THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME

Year Ended December 31,

2014 

2013

2012

(In millions except per share data)

NET OPERATING REVENUES

$ 45,998 

$ 46,854

$ 48,017

Cost of goods sold

17,889 

18,421

19,053

GROSS PROFIT

28,109 

28,433

28,964

Selling, general and administrative expenses

17,218 

17,310

17,738

Other operating charges

1,183 

895

447

OPERATING INCOME

9,708 

10,228

10,779

Interest income

594 

534

471

Interest expense

483 

463

397

Equity income (loss) — net

769 

602

819

Other income (loss) — net

(1,263)

576

137

INCOME BEFORE INCOME TAXES

9,325 

11,477

11,809

Income taxes

2,201 

2,851

2,723

CONSOLIDATED NET INCOME

7,124 

8,626

9,086

Less: Net income attributable to noncontrolling interests

26 

42

67

NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY

$  7,098 

$  8,584

$  9,019

BASIC NET INCOME PER SHARE 1

$   1.62 

$   1.94

$   2.00

DILUTED NET INCOME PER SHARE 1

$   1.60 

$   1.90

$   1.97

AVERAGE SHARES OUTSTANDING

4,387 

4,434

4,504

Effect of dilutive securities

63 

75

80

AVERAGE SHARES OUTSTANDING ASSUMING DILUTION

4,450 

4,509

4,584

1Calculated based on net income attributable to shareowners of The Coca-Cola Company.

THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Year Ended December 31,

2014 

2013 

2012 

(In millions)

CONSOLIDATED NET INCOME

$ 7,124 

$ 8,626 

$ 9,086 

Other comprehensive income:

Net foreign currency translation adjustment

(2,382)

(1,187)

(182)

Net gain (loss) on derivatives

357 

151 

99 

Net unrealized gain (loss) on available-for-sale securities

714 

(80)

178 

Net change in pension and other benefit liabilities

(1,039)

1,066 

(668)

TOTAL COMPREHENSIVE INCOME

4,774 

8,576 

8,513 

Less: Comprehensive income (loss) attributable to noncontrolling interests

21 

39 

105 

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY

$ 4,753 

$ 8,537 

$ 8,408 

THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

December 31,

2014 

2013 

(In millions except par value)

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$  8,958 

$ 10,414 

Short-term investments

9,052 

6,707 

TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

18,010 

17,121 

Marketable securities

3,665 

3,147 

Trade accounts receivable, less allowances of $331 and $61, respectively

4,466 

4,873 

Inventories

3,100 

3,277 

Prepaid expenses and other assets

3,066 

2,886 

Assets held for sale

679 

— 

TOTAL CURRENT ASSETS

32,986 

31,304 

EQUITY METHOD INVESTMENTS

9,947 

10,393 

OTHER INVESTMENTS

3,678 

1,119 

OTHER ASSETS

4,407 

4,661 

PROPERTY, PLANT AND EQUIPMENT — net

14,633 

14,967 

TRADEMARKS WITH INDEFINITE LIVES

6,533 

6,744 

BOTTLERS' FRANCHISE RIGHTS WITH INDEFINITE LIVES

6,689 

7,415 

GOODWILL

12,100 

12,312 

OTHER INTANGIBLE ASSETS

1,050 

1,140 

TOTAL ASSETS

$ 92,023 

$ 90,055 

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Accounts payable and accrued expenses

$  9,234 

$  9,577 

Loans and notes payable

19,130 

16,901 

Current maturities of long-term debt

3,552 

1,024 

Accrued income taxes

400 

309 

Liabilities held for sale

58 

— 

TOTAL CURRENT LIABILITIES

32,374 

27,811 

LONG-TERM DEBT

19,063 

19,154 

OTHER LIABILITIES

4,389 

3,498 

DEFERRED INCOME TAXES

5,636 

6,152 

THE COCA-COLA COMPANY SHAREOWNERS' EQUITY

Common stock, $0.25 par value; Authorized — 11,200 shares;

Issued — 7,040 and 7,040 shares, respectively

1,760 

1,760 

Capital surplus

13,154 

12,276 

Reinvested earnings

63,408 

61,660 

Accumulated other comprehensive income (loss)

(5,777)

(3,432)

Treasury stock, at cost — 2,674 and 2,638 shares, respectively

(42,225)

(39,091)

EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY

30,320 

33,173 

EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS

241 

267 

TOTAL EQUITY

30,561 

33,440 

TOTAL LIABILITIES AND EQUITY

$ 92,023 

$ 90,055 

THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

Year Ended December 31,

2014 

2013 

2012 

(In millions)

OPERATING ACTIVITIES

Consolidated net income

$  7,124 

$  8,626 

$  9,086 

Depreciation and amortization

1,976 

1,977 

1,982 

Stock-based compensation expense

209 

227 

259 

Deferred income taxes

(40)

648 

632 

Equity (income) loss — net of dividends

(371)

(201)

(426)

Foreign currency adjustments

415 

168 

(130)

Significant (gains) losses on sales of assets — net

831 

(670)

(98)

Other operating charges

761 

465 

166 

Other items

149 

234 

254 

Net change in operating assets and liabilities

(439)

(932)

(1,080)

Net cash provided by operating activities

10,615 

10,542 

10,645 

INVESTING ACTIVITIES

Purchases of investments

(17,800)

(14,782)

(14,824)

Proceeds from disposals of investments

12,986 

12,791 

7,791 

Acquisitions of businesses, equity method investments and nonmarketable securities

(389)

(353)

(1,486)

Proceeds from disposals of businesses, equity method investments and nonmarketable securities

148 

872 

20 

Purchases of property, plant and equipment

(2,406)

(2,550)

(2,780)

Proceeds from disposals of property, plant and equipment

223 

111 

143 

Other investing activities

(268)

(303)

(268)

Net cash provided by (used in) investing activities

(7,506)

(4,214)

(11,404)

FINANCING ACTIVITIES

Issuances of debt

41,674 

43,425 

42,791 

Payments of debt

(36,962)

(38,714)

(38,573)

Issuances of stock

1,532 

1,328 

1,489 

Purchases of stock for treasury

(4,162)

(4,832)

(4,559)

Dividends

(5,350)

(4,969)

(4,595)

Other financing activities

(363)

17 

100 

Net cash provided by (used in) financing activities

(3,631)

(3,745)

(3,347)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

(934)

(611)

(255)

CASH AND CASH EQUIVALENTS

Net increase (decrease) during the year

(1,456)

1,972 

(4,361)

Balance at beginning of year

10,414 

8,442 

12,803 

Balance at end of year

$  8,958 

$ 10,414 

$  8,442 

THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY

Year Ended December 31,

2014 

2013 

2012 

(In millions except per share data)

EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY NUMBER OF COMMON SHARES OUTSTANDING

Balance at beginning of year

4,402 

4,469 

4,526 

Purchases of treasury stock

(98)

(121)

(121)

Treasury stock issued to employees related to stock compensation plans

62 

54 

64 

Balance at end of year

4,366 

4,402 

4,469 

COMMON STOCK

$  1,760 

$  1,760 

$  1,760 

CAPITAL SURPLUS

Balance at beginning of year

12,276 

11,379 

10,332 

Stock issued to employees related to stock compensation plans

526 

569 

640 

Tax benefit (charge) from stock compensation plans

169 

144 

144 

Stock-based compensation

209 

227 

259 

Other activities

(26)

(43)

4 

Balance at end of year

13,154 

12,276 

11,379 

REINVESTED EARNINGS

Balance at beginning of year

61,660 

58,045 

53,621 

Net income attributable to shareowners of The Coca-Cola Company

7,098 

8,584 

9,019 

Dividends (per share — $1.22, $1.12 and $1.02 in 2014, 2013 and 2012, respectively)

(5,350)

(4,969)

(4,595)

Balance at end of year

63,408 

61,660 

58,045 

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Balance at beginning of year

(3,432)

(3,385)

(2,774)

Net other comprehensive income (loss)

(2,345)

(47)

(611)

Balance at end of year

(5,777)

(3,432)

(3,385)

TREASURY STOCK

Balance at beginning of year

(39,091)

(35,009)

(31,304)

Stock issued to employees related to stock compensation plans

891 

745 

786 

Purchases of treasury stock

(4,025)

(4,827)

(4,491)

Balance at end of year

(42,225)

(39,091)

(35,009)

TOTAL EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY

$ 30,320 

$ 33,173

$ 32,790

EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS

Balance at beginning of year

$    267 

$   378 

$   286 

Net income attributable to noncontrolling interests

26 

42 

67 

Net foreign currency translation adjustment

(5)

(3)

38 

Dividends paid to noncontrolling interests

(25)

(58)

(48)

Acquisition of interests held by noncontrolling owners

— 

(34)

(15)

Contributions by noncontrolling interests

— 

6 

— 

Business combinations

(22)

25 

50 

Deconsolidation of certain entities

— 

(89)

— 

TOTAL EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS

$   241 

$   267 

$   378 

Appendice D

Pepsico, Inc. is a leading global food and beverage company with a complementary portfolio of enjoyable brands, including Frito-Lay, Gatorade, Pepsi-Cola, Quaker, and Tropicana. Through its operations, authorized bottlers, contract manufacturers, and other third parties, PepsiCo makes, markets, distributes, and sells a wide variety of convenient and enjoyable beverages, foods, and snacks, serving customers and consumers in more than 200 countries and territories. To access PepsiCo's complete annual report, including notes to the financial statements, follow these steps:

1 Go to http://www.pepsico.com/Investors .

2 Select SEC Filings and then the 10K, dated 2/12/2015 (select the pdf version).

3 Select Entire document.

4 The Notes to Consolidated Financial Statements begin on page 73.

· Consolidated Statement of Income

· PepsiCo, Inc. and Subsidiaries

· Fiscal years ended December 27, 2014, December 28, 2013 and December 29, 2012

· (in millions except per share amounts

· Consolidated Statement of Comprehensive Income

· PepsiCo, Inc. and Subsidiaries

· Fiscal years ended December 27, 2014, December 28, 2013 and December 29, 2012

· (in millions)

· Consolidated Statement of Cash Flows

· PepsiCo, Inc. and Subsidiaries

· Fiscal years ended December 27, 2014, December 28, 2013 and December 29, 2012

· (in millions)

· Consolidated Balance Sheet

· PepsiCo, Inc. and Subsidiaries

· December 27, 2014 and December 28, 2013

· (in millions except per share amounts)

· Consolidated Statement of Equity

· PepsiCo, Inc. and Subsidiaries

· Fiscal years ended December 27, 2014, December 28, 2013 and December 29, 2012

· (in millions)