Profitability and operating performance ratios

Assignment Help Finance Basics
Reference no: EM133057101

Using the profitability and operating performance ratios, discuss what conclusions you can make about each company's profits over the past three years. Support your conclusions. Which company is doing better, why or why not? (PEPSI VS COCA COLA).

Operating performance ratio:

Fixed asset turnover ratio

Pepsi - 3.29

Coke - 3.06

Profitability indicator ratios:

Return on assets

ROA Pepsi - 8.4%

ROA Coke - 9.84%

Return on equity

ROE Pepsi - 55.5%

ROE Coke - 43.2%

Reference no: EM133057101

Questions Cloud

Cloud application security : Would an organization need to apply security controls to allow safe use of those applications? Why or why not?
Is financial service industry under regulated : Is financial service industry under regulated? Support your answer with examples.
What is single amount reported as discontinued operations : The income tax rate is 30%. What is the single amount reported as discontinued operations in Sa Young Nam' profit or loss for 2020
What is the price of the bond : Assume that a bond matures in 18 years with a par value of $1,000, and an annual coupon rate of 10%, as well as a market interest rate of 7%.
Profitability and operating performance ratios : Using the profitability and operating performance ratios, discuss what conclusions you can make about each company's profits over the past three years.
What is the Common Rule : What is the Common Rule? How is this issue related to information systems and digital privacy?
Engage in earnings manipulation : For each of the following factors, determine if the given change or level of that factor would lead an analyst to believe that managers of a firm are more or le
Empowering an organization to achieve ultimate vision : Risk management is one of the most important components in empowering an organization to achieve its ultimate vision.
What is the current share price : A company is expected to pay the following dividends over the next four years: $12, $8, $5, and $3. What is the current share price

Reviews

Write a Review

Finance Basics Questions & Answers

  If the owner of the brand wants to verify

If the owner of the brand wants to verify this with a small sample of 10 randomly selected consumers find the probability that 9 of the 10 consumers recognize the brand name as well as the probability that 9 out of 10 do not.

  At what size capital structure will the firm run out

The Nolan Corporation finds it is necessary to determine its marginal cost of capital. Nolan's current capital structure calls for 30 percent debt.

  What is the ear

Bank A charges 9.1% APR on auto loans with monthly compounding. What is the EAR? Answer in% form with 3 decimals.

  Prepare a balance sheet and income statement

Prepare a balance sheet, an income statement, and a retained earnings statement for the Canadian subsidiary for Year 2 in U.S. dollars, assuming that the Canadian dollar is the functional currency.

  What value would frank estimate for the firm

Kent, a colleague of Frank at the same firm is less optimistic. Brett thinks the ABC company will begin paying a divident in 4 yrs and it will be $2.50 and it will grow at a rate of 3% annually. John and James agree that the required return for AB..

  Analysis for project and calculate its npv

The discount rate for this project is 10%. Do the capital budgeting analysis for this project and calculate its NPV.

  What is the present value of the tuition payments

What is the present value of the tuition payments if the interest rate is 6% per year? How much would you need to have in the bank now to fund all 13 years of t

  What is the maximum possible profit

The current price of a non-dividend paying stock is 100 and the continuously compounded risk-free annual rate of interest is 2%.

  Why are psychologists sometimes interested in epidemiology

Why do researchers use probability rather than nonprobability samples when doing descriptive research?

  What has been the biggest insight about insurance

What has been the biggest insight about insurance, or most important "take-away," about risk management and insurance that you received from the course?

  Numerous definitions of insurance

There are numerous definitions of insurance. Based on the definition of insurance stated in the text, indicate whether each of the following guarantees is considered insurance.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd