 Coca Cola is the leading company in the beverage industry worldwide  The revenue of the company increased in 2012 as compared to that reported in 2012  2011 revenue was $46,542 million  For 2012, the company generated $48,017 million in revenue  The growth of the company is attributed to the growth of the international market (Yahoo Finance, 2013)

 The company manufactures and markets carbonated drinks  The main financial strength of the company is the wide range of products produced by the company  The company is however threatened by stiff competition in the industry

 The company has several competitors in the industry  The main competitor is PepsiCo  Unlike Coca Cola, PepsiCo markets other products in addition to carbonated drinks (Yahoo Finance, 2013b)  The company’s revenue has grown significantly since 2009 (PepsiCo Annual Report 2012)

 The revenue in 2012 was $65,492 million and in 2012, the revenues increased to $65,821 million  The company’s main financial strength is the diversification of the products (Coca Cola Annual Report 2011 & 2012)

 The profitability ratio for Coca Cola is much higher than that of PepsiCo despite the revenue differences  The Earn Before Interests and after Tax  Coca Cola 2011 EBIT = 46,542million -36,369 million = $10,173 million  Coca Cola 2012 EBIT = 48,017 – 37,238 = $10,779 million  PepsiCo 2011 EBIT = 65, ,871,000 =$8,621 million  PepsiCo 2012 EBIT = 65,821, ,380,000 = $9,441 million

 Coca Cola ,507,000,000 / 46,542,000,000 =  Coca cola ,730,000,000 / 48,017,000,000 = 0.64  PepsiCo ,593,000,000 / 65,492,000,000 = 0.48  PepsiCo ,291,000,000 /65,821,000,000 = 0.47

 From the above ratios  Coca Cola can generate more income than PepsiCo (PepsiCo and Coca Cola annual Reports 2011 & 2012)

 Coca cola ,230 / 3,171 = 0.70  Coca Cola ,322 / 3,723 = 0.62  PepsiCo ,441 /18,154 = 0.96  PepsiCo ,089 / 18,720 = 0.91

 From the ratios above:  PepsiCo is has more ability to service short- term debts than Coca Cola  Coca Cola’s ability to service short-term debts is fairly normal since the ratios are more than 0.5

 Coca Cola ,012 / 9,094 = 0.33  Coca Cola ,466 / 9,510 = 0.36  PepsiCo ,982 / 72,882 = 0.71  PepsiCo ,239 / 74,638 = 0.69

 Coca Cola has more debts than PepsiCo  Additionally, the total assets for PepsiCo are more than Coca Cola’s

 Coca Cola / 2693 = 3.2  Coca Cola / 2899 = 3.1  PepsiCo / 2417 = 2.6  PepsiCo / 2704 = 2.3

 There are more investors in Coca Cola than in PepsiCo  The share price for Coca Cola is lower than that of PepsiCo

 Coca Cola Annual Report (2011). Retrieved from: &p=irol-reportsannual  Coca Cola Annual Report (2012). Retrieved from: &p=irol-reportsannual  PepsiCo Annual Report (2011). Retrieved from: s/pep_ar11_2011_annual_report.pdf  PepsiCo Annual Report (2012). Retrieved from: port_2012.pdf

 PepsiCo Annual Report (2012). Retrieved from: port_2012.pdf  PepsiCo. (2012. Performance with Purpose. Retrieved from: e-with-Purpose/Financial-Highlights.html  Yahoo Finance. (2013). The Coca-Cola Company. Retrieved from:  Yahoo Finance (2013b). Pepsico, Inc. Retrieved from: