Financial Management

Financial Management Hamza Abobaker The Business initiative Strayer University Dr. Steven Englehert June 10, 2011 PepsiCo and Coca-Cola Enterprise argon considered the nearly important and largest beverage companies in the dry land 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. individually of these two companies issues an one-year monetary report to determine the monetary level that could religious service the management make the right hand decisions when developing plans for a impudently year. In addition, the annual pecuniary report applys the stockholders and shareholders an accurate judgment about the profits and losses of the partnership. A closer escort at the annual financial report for each of them would service us to determine which companion is better able to devote accredited liabilities. Based on the financial statements, Coca-Cola has a genuine proportion 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 earn an idea of the companys ability to pay grit its short-term liabilities (debt) with its short-term assets (cash, inventory, receivables).

The higher(prenominal) the current ratio, the more overt the company is of paying its obligations. A ratio under 1 suggests that the company would be inefficient to pay off its obligations if they came out-of-pocket at that point. W hile this shows the company is non in unaf! raid financial health, it does not ineluctably 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 ware into cash. In this particular case, Companies that receive trouble getting salaried on their receivables or meet long inventory overthrow can run into liquid problems because they are unable to...If you indigence to get a enough essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper