Pepsi vs. Coke the epic battle that every American and, from the looks of its financial statements, perhaps everyone in the world must face heads, does she have a winner. For the financial year 2005 this is certainly the case, through the analysis of financial statements with vertical, horizontal and ratio analysis, investors are able to clearly decide which is the best choice for their investment. With careful consideration and attention to detail, any investor can safely invest their money in a company as long as they follow GAAP rules and regulations. Using the financial analysis tools and information provided, I will determine the winner of this battle for 2005, at least from an investor's perspective. In our literature, it is stated that “vertical analysis evaluates financial statement data by expressing each item in financial form.” raised as a percentage of a basic amount. I chose to look vertically at the current assets and liabilities of both companies so that I could compare these numbers between Coca-Cola and PepsiCo to find out who is in a better position right now. PepsiCo total assets: (2005) 10,454/ 31,727 = approx. 33% of total assets are current (2004) 8639/27987 = approx. 31% of total assets are current. We will now look at current liabilities versus total liabilities of PepsiCo (2005) 9406/ 17476 = approx. 54% of total liabilities are current (2004)6752/14464 = approx. 47% of total liabilities are currentCurrent assets vs. Total assets for Coca-Cola: 2005)10,250/ 29,427 =Approx. 35% Current 2004)12281/ 31441 = Approximately 39% Current And we will look at current liabilities versus Coca-Cola's total liabilities: 2005)9836/ 29427 = Approx. 33% Current 2004...... middle of paper ...... id volume growth for 2005... The company said it earned $864 million, or 36 cents per share, in the fourth quarter, or a decline of 28 percent from the year. Before. However, excluding one-time charges, the company earned 46 cents per share, a penny more than analysts expected. One-time items included taxes on repatriated foreign income and fees related to a bottling investment. (Wilbert, 06) » It's a sad day when you have a 28% year-over-year decline and exceed "Wall Street expectations." If I were in their shoes, I would do whatever I had to do to get consumers to put their hard-earned money back into my business, even at the cost of less profitability, sell for less but sell more...hey, it works for Wal-Mart, why not you. at Coca-Cola. Until they change their investment and marketing strategies, I would avoid investing in new Coca-Cola stock for more than a few years..