Coca-ColavsPepsico Kendra Alton-Desbian Jeff DeFalco Shane Gorney Coy Lampe Jessica ShenkLiability Recognition and Nonowner Financing
Operating Liabilities Coca-Cola has decreased the percentage of Operating Liabilities to total liabilities from 2019 through 2021 as a result of their liabilities continuously increasing in smaller increments while their Long Term Debt and Current Maturities of Long Term Debt have jumped from $31769 to $40610 in 2020 and then to $39454 in 2021.The substantially larger numerator has resulted in a lower overall percentage of operating liabilities to total liabilities. ●Coca-Cola's main operating liability is Accounts Payable and accrued expenses, which made up 21.04%, 16.88%, and 17.33% in 2021, 2020, and 2019, respectively. ●Per Coca-Cola's footnotes: "As of December 31, 2021, we were contingently liable for guarantees of indebtedness owed by third parties of $440 million, of which $93 million was related to Variable Interest Entities." ●Contingent liabilities are sometimes necessary to disclose when company anticipates a probable loss or acquisition of debt.$440 million is not very substantial to Coca-Cola as it would make up only 0.63% of their total overall liabilities.
Operating Liabilities Operating liabilities for Pepsico have consistently made up almost 50% of their total liabilities.The ratio of operating liabilities to total liabilities for Pepsico has remained more consistent overall than that of Coca-Cola's.
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