2.  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)

3.  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

4.  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)

5.  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)

6.  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 = 65,492 - 56,871,000 =$8,621 million  PepsiCo 2012 EBIT = 65,821,000 - 56,380,000 = $9,441 million

8.  Coca Cola 2011 29,507,000,000 / 46,542,000,000 = 0.633  Coca cola 2012 30,730,000,000 / 48,017,000,000 = 0.64  PepsiCo 2011 31,593,000,000 / 65,492,000,000 = 0.48  PepsiCo 2012 31,291,000,000 /65,821,000,000 = 0.47

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

10.  Coca cola 2011 2,230 / 3,171 = 0.70  Coca Cola 2012 2,322 / 3,723 = 0.62  PepsiCo 2011 17,441 /18,154 = 0.96  PepsiCo 2012 17,089 / 18,720 = 0.91

11.  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

12.  Coca Cola 2011 3,012 / 9,094 = 0.33  Coca Cola 2012 3,466 / 9,510 = 0.36  PepsiCo 2011 51,982 / 72,882 = 0.71  PepsiCo 2012 52,239 / 74,638 = 0.69

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

14.  Coca Cola 2011 8646 / 2693 = 3.2  Coca Cola 2012 9086 / 2899 = 3.1  PepsiCo 2011 6462 / 2417 = 2.6  PepsiCo 2012 6214 / 2704 = 2.3

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

16.  Coca Cola Annual Report (2011). Retrieved from: http://ir.cokecce.com/phoenix.zhtml?c=117435 &p=irol-reportsannual  Coca Cola Annual Report (2012). Retrieved from: http://ir.cokecce.com/phoenix.zhtml?c=117435 &p=irol-reportsannual  PepsiCo Annual Report (2011). Retrieved from: http://www.pepsico.com/annual11/download s/pep_ar11_2011_annual_report.pdf  PepsiCo Annual Report (2012). Retrieved from: www.pepsico.com/download/PEP_Annual_Re port_2012.pdf

17.  PepsiCo Annual Report (2012). Retrieved from: www.pepsico.com/download/PEP_Annual_Re port_2012.pdf  PepsiCo. (2012. Performance with Purpose. Retrieved from: http://www.pepsico.com/Purpose/Performanc e-with-Purpose/Financial-Highlights.html  Yahoo Finance. (2013). The Coca-Cola Company. Retrieved from: http://finance.yahoo.com/q/pr?s=KO  Yahoo Finance (2013b). Pepsico, Inc. Retrieved from: http://finance.yahoo.com/q/pr?s=PEP