Financial analysis- cocacola vs pepsi question

Financial Analysis- CocaCola VS Pepsi Question

You will assume the role of a financial analyst and be creating a full analysisb Between Coca-Cola and PepsiCo. Please ensure that you fully explain all calculations and that you answer each and every question thoroughly. I have included hyper links  for  coca-ola and pepsicoinc annual financial statements for 2011

need to locate Coca-Cola and PepsiCo, Inc annual financial statements for 2011.

 http://www.annualreports.com/Company/2945

 Coca Cola Financial Statement 2011

http://www.pepsico.com/annual11/downloads/pep_ar11_2011_annual_report.pdf

 PepsiCo Financial Statement 2011

1.      Compute both companies’ cash coverage ratio, current ratio and free cash

flow.

2.      What ratios do each of these companies use in the Management’s

Discussion and Analysis section of the annual report to explain their

financial condition related to debt financing?

3.      Compute and compare the inventory turnover ratios and days to sell

inventory for Coca-Cola and PepsiCo for 2011.Indicate why there might

be a significant difference between the two companies.

 

4.      Compute

a.        asset turnover

b.      Profit margin on sales

c.       rate of return onassets

d.      debt to total assets ratio

e.       times interest earned ratio.

Pleasefully explain what each ratio is telling you.