Write an 8-10 page research paper on any two companies, who are competitors in the same industry. The 8-10
pages do not include the title page, graphs or references. The paper must include an introduction or abstract
and a summary conclusion.
Project Assignment Using Coke and Pepsi as an Example:
To learn more about PepsiCo and Coca-Cola Enterprises, download both company’s latest Annual Report.
Review the annual reports for general information.
Required:
1. Read -Understanding the Income Statement at: http://www.investopedia.com/articles/04/022504.asp
2. Read -Reading the Balance Sheet at: http://www.investopedia.com/articles/04/031004.asp
3. Compute- the following financial ratios for both companies and provide as an appendix to the required paper.
Liquidity measurement ratio: · Current ratio
Profitability indicator ratios:· Return on assets · Return on equity
Debt ratio: · Debt ratio
Operating performance ratio: · Fixed asset turnover ratio
Cash flow indicator ratio: · Dividend payout ratio
Investment valuation ratio: · Price / Earnings ratio
You can take these from a financial website and provide them. I do not need to see the calculations. You will
need to reference these ratios as you answer the required questions below. If you want to put a short table
together to show the ratios as you answer the questions, it is helpful. If not, the appendix is fine
For each company and comparing the two, you are to write an eight to ten (8-10) page report that answers the
following:
1. Provide a short background on each company, the industry and the market (growing, declining, etc?) in
which they operate. (This should be no more than 1- 1.5 pages for both companies in total and can be a part of
your introduction.) 5 points
Do not waste too much time on this. It should be short.
2. Using the current ratio and debt ratios, discuss what conclusions you can make about each company’s
ability to pay current liabilities (debt). Support your conclusions. Which company is doing better, why or why
not? 25 points
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