Hamza Abobaker
The Business Enterprise
Strayer University
Dr. Steven Englehert
June 10, 2011
PepsiCo and Coca-Cola Enterprise are considered the nearly important and largest beverage companies in the world that compete in the industry of the soft drink. Both companies are the most popular and widely recognized beverage brands in the world. They try to securities industry as part of a lifestyle. Each of these two companies issues an one-year financial report to determine the financial level that could religious service the management make the right decisions when developing plans for a impudently year. In addition, the annual financial report applys the stockholders and shareholders an accurate judgment about the profits and losses of the company. A closer escort at the annual financial report for each of them would service us to determine which company is better able to devote accredited liabilities. Based on the financial statements, Coca-Cola has a genuine ratio of 1.28 (www.cce2009annulareport.com, 12/31/2009), while PepsiCo is at 1.44 (www.pepsico.com/annaulreport.com, 12/26/2009). The current ratio is mainly used to give an idea of the companys ability to pay grit its short-term liabilities (debt) with its short-term assets (cash, inventory, receivables).
The higher the current ratio, the more overt the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came out-of-pocket at that point. While this shows the company is not in unafraid financial health, it does not necessarily mean that it will go bankrupt, as there are many ways to entree financing, but it is definitely not a good sign. The current ratio can give a sense of the capability of a companys operating cycle or its ability to turn its product into cash. In this particular case, Companies that receive trouble getting paid on their receivables or meet long inventory turnover can run into liquid problems because they are unable to...If you want to get a enough essay, order it on our website: Orderessay
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