Performing a financial analysis of a company allows an investor or creditor to fully understand the makeup of that particular company. For Pepsi Co, Inc. and The Coca-Cola Companies, the vertical and horizontal analysis below along with selected ratios provide details about each company to enable comparison between them. Pepsi Co, Inc. shows a large number of assets and ownership while The Coca -Cola companies' net income is lower, their net income is higher. Pepsi Co, Inc. has more assets than Coca-Cola Company, but more of its assets are owned by its creditors. In the short term, Pepsi Co, Inc. has higher liquidity than The Coca-Cola Companies, but their long-term solvency is lower. These differences, although many are slight, would make the difference between investing as an individual or as a creditor. . Each investor should carefully evaluate their own strategy against that of the company to ensure they were similar. A thorough evaluation of the strategy against horizontal and vertical analysis of each company with subsequent ratios would lead to a successful partnership for the investor, whether a retail stock owner or a creditor. The purpose of this article is to provide data and analysis of PepsiCo, Inc. and The Coca-Cola Companies so that a potential investor can make an informed decision on where to place their money. The document presents a vertical analysis of each company's consolidated balance sheet, a horizontal analysis of their consolidated statement of revenue ratios showing solvency, liquidity and profitability. Vertical Analysis Vertical analysis presents the opportunity to evaluate the composition of a company and reveals information about its year. year-over-year changes comparing each line...... middle of paper ...... show the company is growing and expanding, ownership and inventory, as a percentage of assets, should increase instead of decrease. More property and inventory, if not owned by creditors, would also reduce their debt-to-total-assets ratio. PepsiCo, Inc. and The Coca-Cola Company are both strong companies with billions in sales each year. A creditor, investor, or business planner would each evaluate the business in different ways using different ratios and financial analyses. As an investor, I view Pepsi as a larger company with more assets and would expect it to have a larger market share as a result. Coca-Cola, however, appears to be a stable company, capable of growing and investing primarily in its own businesses. Slight changes from either company could propel them to the top of the industry, although they are both industry leaders..