Financial innovation has impacted on introduction of different finance products. This has impacted on enhancing investor’s freedom to choose from different investments options available in the market. Investors will have different risks altitudes and therefore, they will be able to select products which fit their needs. In most cases, Investors will often seek proper advice from investments advisory bodies prior to making investments decision. This will lower risks level as experts are well equipped with critical information on stock historical trend and can be able to make a more accurate projections.
Similarly to individual investors, banks are also very cautious prior to extending credit to companies. Credit rating is mainly used in accessing credit worthiness of a given company. This will possibly impact on excluding some companies from accessing the much needed finances. This is common where value of creditors outweigh debt owed to the company. This will however minimize potential risks to the bank incase a company fails to meet debt obligation.
It is important to note that all investments are made in the current period with potential benefits to be realized in future. Also, value of investments today may either appreciate or depreciate depending on different market and economic happenings. Banks and other interested stakeholders have been largely utilizing value for money technique in evaluating expected returns in future. Financial projections are also calculated based on expected value of returns in future.
This research paper explores Coke-Cola Company performance with a close comparison PepsiCo. Financial performance is analyzed together with stock performance in both companies. Credit rating as applied by the banks is also discussed.
Inhaltsverzeichnis (Table of Contents)
- Abstract
- Introduction
- Pepsi and Coke Analysis
- Balance Sheet and Credit Rating
- Stock Trend and Investments
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This research paper explores the financial performance of Coca-Cola and PepsiCo, comparing their stock performance and credit ratings. It aims to analyze their financial health and assess their investment potential, considering the context of the soft drink market and the overall business environment.
- Financial Performance Analysis
- Stock Performance and Valuation
- Credit Rating and Risk Assessment
- Market Dominance and Competitive Dynamics
- Investment Strategies and Decision Making
Zusammenfassung der Kapitel (Chapter Summaries)
The abstract introduces the concept of financial innovation and its impact on investor choice. It highlights the importance of credit rating and risk assessment in lending decisions.
The introduction elaborates on the value for money ideology and its relevance in investment decisions. It discusses the significance of creditworthiness in bank lending practices.
The chapter on Pepsi and Coke Analysis provides a comparative overview of the two companies' balance sheets and credit ratings. It examines their asset and liability structures, highlighting the implications for future financial obligations and creditworthiness. The chapter also analyzes the potential risks and opportunities associated with investing in these companies.
The chapter on Stock Trend and Investments delves into the stock performance of PepsiCo and Coca-Cola. It analyzes key financial metrics such as market cap, price-to-book value, earnings per share, dividend yield, and return on equity. The chapter concludes with an assessment of the investment potential of the two companies' shares, considering their current pricing and historical trends.
Schlüsselwörter (Keywords)
This research paper focuses on financial analysis, stock performance, credit rating, market dominance, investment decisions, soft drink industry, Coca-Cola, PepsiCo, risk assessment, value for money, financial innovation.
- Quote paper
- Dr Kelly Clarkson (Author), 2011, Coke-Cola Company performance with a close comparison to PepsiCo, Munich, GRIN Verlag, https://www.grin.com/document/213090
