Investment Recommendations: Analyzing Financial Performance of

School: Grand Canyon University - Course: ACC-502 ACC502 - Subject: Accounting

1 Investment Recommendations Colangelo College of Business, Grand Canyon University ACC-502: Accounting Practices Amy Drake Professor Kari Day December 21st, 2022

2 Investment Recommendations Performing an accurate financial ratio analysis and comparison helps companies gain insight into their financial position so that they can make necessary financial adjustments to enhance their financial performance (Carlson, R., 2022). The purpose of this letter is to provide clarity and transparency for potential investors of the Coca-Cola Company (TCCC) with the liquidity, profitability, and solvency ratios so they can better determine if they want to invest in this very popular carbonated soda drink. A comparison between TCCC and its main competitor, Pepsi-Co for the years 2020 and 2021 will be included. Financial Performance TCCC (The Coca-Cola Company) is the largest beverage company in the world. Additionally, TCCC is also the largest distributor, manufacturer, and vendor of nonalcoholic, carbonated drinks. This company is best known for its star product, the Coca-Cola soft drinks and the company offers 500 plus brands in a projected 200 countries (and territories) and claims to deliver over 1.95 billion servings to its consumers daily. Throughout the entire operating division, TCCC reported generating $33.0 billion in total revenue in 2020 (latest data available). Due to the Corona virus pandemic in 2020, there was a decline in revenue that estimated 13.7%, however the revenue is projected to rise 20.0% due to a strong rise in consumer demand from evolving markets. Coca-Cola Company had an annual revenue of $38.655B for 2021, which was a 17.09% increase from 2020. PepsiCo had an annual revenue of $79.474B for 2021, which was a 12.93% increase from 2020.