Get familiar with company 10-K reports. Compare 2 companies of the same industry.
Do the following tasks and answer the following questions:
Go to the Consolidated Statement of Income. For the most recent year, what is:
Net Income or Net Earnings
Go to the Consolidated Balance Sheet (or Statement of Financial Position). For the most recent year, what is:
Total Current Assets
Total Current Liabilities
Total Owner’s equity or Total Shareholders Investment
Calculate following ratios:
Current ratio (divide current assets by current liabilities)
Return on equity (divide Net Income by Total Owner’s equity)
Do the above steps for 2 public companies that belong to the same industry and write a short summary on your observations.
PepsiCo (PEP) and Coca Cola (COKE)
