Reference no: EM132961032
The calculated results reviewed showed Coca-Cola company's inventory turnover has dropped in 2020 to 4.04 times from 4.53 times in 2019 (Coca-Cola, 2021). This is related mainly due to drop in the net operating revenues in 2020 which was 33 billion from 37 billion in 2019 (Coca-Cola, 2021). The net operating revenues also dropped by $ (4,252) billion (11%) in 2020 (Coca- Cola, 2020). Regarding inventory, the average days in inventory for Coca-Cola goods increased from 81 days in 2019 to 90 days in 2020 for Coca-Cola company (Coca Cola, 2020).
PepsiCo company's inventory turnover also has dropped in 2020 to 8.47 times from 9.32 times in 2019. This is mainly due to the increase in the cost of sales by $ 1,665 billion 6% from 30,132 billion in 2019 to $ 31,797 billion in 2020. (PepsiCo, 2021). Regarding inventory, the average days in inventory for PepsiCo Company also increased from 39 days in 2019 to 43 days in 2020.
Inventory turnover coke pepsi- is 8.47 times, 2019 is 9.32 times coke 2020, 4.04 times and 2019- 4.53 times
Problem 1: How well did Coke and Pepsi do in managing inventory for 2020 and 2019?
Problem 2: What other thoughts do you have on how Coke and PEPSI did with inventory turnover and average days in inventory for 2020 and 2019?