Explain the meaning of each ratio

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Question: The purpose of this assignment is to calculate asset ratios, analyze them, and compare them between two competitors in the same industry.

Review the most recent annual reports of The Coca-Cola Company and PepsiCo focusing on the balance sheet and footnote inventories.

Using the correct formulas and a separate tab for each ratio, calculate the following ratios for each company for the last 2 years using Excel:

- Inventory turnover

- Average days in inventoryIn a Word file, include the following:

- Explain the meaning of each ratio and what the calculated results tell you about each of the companies. Refer to the calculated ratios in your analysis. Your explanation should consider how the ratios changed in the last 2 years. Your explanation should include a separate paragraph for each ratio.

- Summarize how effective the company is in managing inventory based upon the type(s) of products the company sells and the industry in which it competes. Include discussion about whether the inventory turnover ratio is increasing or decreasing, what is causing the ratio increase/decrease, and whether the total value of inventory is increasing or decreasing on the balance sheet.

Reference no: EM132767495

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