Which company had higher operating leverage

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In its 2008 annual report, The Coca-Cola Company reported sales of $31.9 billion for fiscal year 2008 and $28.9 billion for fiscal year 2007. The company also reported operating income (roughly equivalent to EBIT) of $8.4 billion and $7.2 billion in 2008 and 2007, respectively. Meanwhile, arch-rival PepsiCo, Inc. reported sales of $43.2 billion in 2008 and $39.5 billion in 2007. PepsiCo’s operating profit was $6.9 billion in 2008 and $7.2 billion in 2007. Based on these figures, which company had higher operating leverage?

Reference no: EM131012389

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