Está en la página 1de 16

This spreadsheet supports STUDENT analysis of the case, "Coke vs.

Pepsi, 2001"
(Case 14).

Copyright 2001 by the Trustees of the University of Virginia Darden School Foundation.

The Coca-Cola Company


($MM)
NOPAT
Invested capital
Return on invested capital
WACC
ROIC-WACC Spread
EVA

1994
2,547
7,769
32.8%
12.2%
20.6%
1,602

1995
2,783
8,466
32.9%
11.4%
21.4%
1,814

1996
2,583
9,649
26.8%
13.4%
13.4%
1,292

1997
3,381
13,825
24.5%
12.9%
11.6%
1,601

1998
3,178
15,896
20.0%
11.1%
8.9%
1,422

1999
2,605
15,644
16.6%
9.9%
6.8%
1,063

2000
2,349
15,864
14.8%
8.4%
6.4%
1,016

PepsiCo, Inc.
($MM)
NOPAT
Invested capital
Return on invested capital
WACC
ROIC-WACC Spread
EVA

1994
2,122
22,507
9.4%
11.5%
-2.1%
(464)

1995
2,204
27,009
8.2%
11.0%
-2.8%
(760)

1996
1,892
26,823
7.1%
10.5%
-3.4%
(916)

1997
1,922
16,392
11.7%
11.6%
0.1%
24

1998
2,522
19,439
13.0%
10.8%
2.2%
428

1999
1,794
12,849
14.0%
9.9%
4.1%
522

2000
2,292
13,146
17.4%
8.3%
9.1%
1,201

Return on Equity and Return on As

Return on Equity: Coca-Cola Vs. PepsiCo


KO

%
60
50
40
30
20

PepsiCo

10

Source: Casewriter estimates from annual reports

DO NOT PRINT
1981
Coca-Cola
ROE
19.688
ROA
12.541
PepsiCo
ROE
ROA

20.329
8.219

1982

1983

1984

1985

1986

1987

1988

18.435
10.404

19.114
10.679

22.635
10.554

22.744
9.823

26.582
11.159

28.418
10.964

34.094
13.935

13.589
5.343

15.835
6.125

11.151
4.175

22.859
7.167

22.233
5.702

24.121
6.706

24.113
6.845

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

1988

1987

1986

1985

1984

1983

1982

1981

Exhibit 2
Coke vs. Pepsi, 2001

on Equity and Return on Asset Comparisons, Coca-Cola and PepsiCo

Return on Assets: Coca-Cola Vs. PepsiCo

%
30

KO

KO

25
20
15
10

PepsiCo

PepsiCo

1989

1991

1992

1993

1994

1995

1996

1997

36.775
14.144

36.134
14.698

36.546
15.823

48.447
17.045

47.731
18.201

48.787
18.41

55.378
19.852

56.725
21.608

56.477
24.374

23.166
5.959

22.238
6.362

19.479
5.753

24.305
6.213

25.051
6.698

26.021
7.196

21.961
6.315

17.349
4.688

21.497
7.418

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

1988

1987

1986

1985

1984

1983

1981
1990

1982

2000

1999

1998

1997

5
1996

1995

epsiCo

PepsiCo

KO

1998

2000

1999

1998

1997

1996

1995

1994

PepsiCo

1999

2000

42.045
18.454

25.555
11.243

23.368
10.449

31.136
8.795

29.792
11.68

30.114
11.904

Exhibit 3
Coke vs. Pepsi, 2001

U.S. Soft Drink Market Shares, Coca-Cola and Pep

1990

1991

1992

1993

1994

1995

Coca-Cola
Gallonage (in millions)
Growth
Market share
Market share gain/(loss)

4,915.5
4.0%
41.0%
0.6%

5,038.4
2.5%
41.3%
0.3%

5,108.9
1.4%
41.3%
0.0%

5,310.0
3.9%
41.7%
0.4%

5,580.8
5.1%
42.0%
0.3%

5,915.4
6.0%
42.9%
0.9%

PepsiCo
Gallonage (in millions)
Growth
Market share
Market share gain/(loss)

3,970.5
3.0%
33.1%
0.1%

4,010.2
1.0%
32.9%
-0.2%

3,827.6
-4.6%
30.9%
-2.0%

3,899.0
1.9%
30.6%
-0.3%

4,070.6
4.4%
30.7%
0.1%

4,201.8
3.2%
30.6%
-0.1%

Soft Drink Industry


Gallonage (in millions)
Growth

11,996.1
2.6%

12,200.4
1.7%

12,473.2
2.2%

12,722.7
2.0%

13,275.0
4.3%

13,752.9
3.6%

Source: Compiled from Beverage World

Exhibit 3

e vs. Pepsi, 2001

res, Coca-Cola and PepsiCo

1996

1997

1998

1999

2000

6,223.9
5.2%
43.8%
0.9%

6,473.0
4.0%
44.1%
0.3%

6,764.4
4.5%
44.6%
0.5%

6,730.5
-0.5%
44.1%
-0.5%

6,737.2
0.1%
44.0%
-0.1%

4,370.2
4.0%
30.8%
0.2%

4,500.2
3.0%
30.7%
-0.1%

4,704.1
4.5%
31.0%
0.3%

4,732.3
0.6%
31.0%
0.0%

4,736.1
0.1%
30.9%
-0.1%

14,199.5
3.2%

14,665.8
3.3%

15,160.6
3.4%

15,251.6
0.6%

15,328.0
0.5%

Exhibit 4
Coke vs. Pepsi, 2001
Analytical Financial Ratios, The Coca-Cola Company
1994

1995

1996

1997

31.24
(16.33)
3.59
1.08

32.61
(11.27)
3.60
1.12

32.83
(10.62)
3.87
1.15

31.73
(8.90)
4.33
1.12

0.64
0.25
0.54

0.59
0.18
0.45

0.80
0.22
0.47

0.75
0.21
0.47

Long Term Debt and Solvency Analysis


Debt equity ratio
Times interest earned
Fixed charge coverage ratio
Capital expenditure ratio
Cash from operations-debt ratio

0.67
18.63
10.02
3.83
0.96

0.75
14.80
9.87
3.55
0.82

0.73
13.69
7.18
3.50
0.77

0.61
19.38
8.99
3.69
0.78

Profitability Analysis
Operating margin
Net profit margin
ROA
ROE
Financial leverage effect

22.9%
15.8%
16.8%
44.3%
70.1%

22.3%
16.6%
17.7%
48.1%
68.9%

21.1%
18.8%
19.1%
51.7%
74.2%

26.5%
21.9%
21.1%
48.0%
89.2%

Growth
Sales
Book assets
Net income before unusual gain/loss
Adjusted NOPAT
Net income
Operating income

15.9%
15.4%
16.7%
19.5%
17.4%
19.5%

11.4%
8.4%
16.9%
8.6%
16.9%
8.6%

2.9%
7.4%
16.9%
-2.8%
16.9%
-2.8%

1.7%
4.5%
18.2%
27.7%
18.2%
27.7%

Activity Analysis
Average days outstanding
Working capital turnover
Fixed assets turnover
Total asset turnover
Liquidity Analysis
Current ratio
Cash ratio
Cash from operations ratio

Source: Company 10-K Filings with SEC

The Coca-Cola Company


1998

1999

2000

32.06
(6.14)
4.36
1.05

31.92
(5.49)
3.79
0.92

31.71
(6.52)
3.32
0.93

0.87
0.18
0.35

0.90
0.18
0.39

0.87
0.20
0.38

0.65
17.93
8.70
3.98
0.55

0.65
11.82
6.03
3.63
0.62

0.61
8.26
5.77
4.89
0.63

26.4%
18.8%
22.9%
46.1%
82.6%

20.1%
12.3%
17.3%
37.1%
71.1%

18.0%
10.6%
11.5%
25.8%
61.0%

-0.3%
13.4%
-14.4%
-0.7%
-14.4%
-0.7%

5.3%
12.9%
-31.2%
-19.8%
-31.2%
-19.8%

3.3%
-3.6%
-10.4%
-7.3%
-10.4%
-7.3%

Exhibit 5
Coke vs. Pepsi, 2001
Analytical Financial Ratios, PepsiCo, Inc.
1994

1995

1996

1997

25.33
(34.07)
1.64
1.17

26.89
513.67
1.72
1.20

28.39
200.28
1.82
1.27

40.71
20.98
1.42
0.94

Liquidity Analysis
Current ratio
Cash ratio
Cash from operations ratio

0.96
0.28
0.71

1.06
0.29
0.72

1.00
0.15
0.82

1.47
0.68
0.80

Long Term Debt and Solvency Analysis


Debt equity ratio
Times interest earned
Fixed charge coverage ratio
Capital expenditure ratio
Cash from operations-debt ratio

1.39
4.96
3.03
1.65
0.39

1.73
4.38
2.72
1.78
0.30

1.97
4.24
2.48
1.83
0.32

0.71
5.57
3.41
2.27
0.69

Profitability Analysis
Operating margin
Net profit margin
ROA
ROE
Financial leverage effect

11.3%
6.2%
7.2%
24.1%
54.6%

9.9%
5.3%
6.4%
24.7%
54.7%

8.0%
3.6%
4.6%
23.0%
53.8%

12.7%
10.2%
9.6%
16.9%
45.1%

Growth
Sales
Book assets
Net income before unusual gain/loss
Adjusted NOPAT
Net income
Operating income

13.3%
4.6%
12.3%
10.1%
10.3%
10.1%

6.7%
2.6%
-10.0%
-6.7%
-8.3%
-6.7%

4.6%
-3.6%
-28.5%
-14.8%
-28.5%
-14.8%

-33.9%
-18.0%
29.8%
4.6%
86.4%
4.6%

Activity Analysis
Average days outstanding
Working capital turnover
Fixed assets turnover
Total asset turnover

Source: Company 10-K Filings with SEC

PepsiCo, Inc.
1998

1999

2000

37.59
(28.69)
1.57
1.05

37.25
(12.86)
1.55
1.01

31.28
38.78
2.05
1.14

0.55
0.05
0.41

1.10
0.28
0.80

1.17
0.34
0.99

1.24
6.54
3.09
2.29
0.40

0.44
7.76
3.73
2.71
0.99

0.33
14.59
4.36
3.67
1.62

11.6%
8.9%
9.3%
32.1%
80.5%

13.8%
10.1%
10.2%
30.0%
77.1%

15.8%
10.7%
12.2%
29.0%
72.7%

6.8%
12.7%
33.7%
-2.9%
-7.0%
-2.9%

-8.9%
-22.5%
2.9%
9.1%
2.9%
9.1%

0.3%
4.5%
6.5%
14.4%
6.5%
14.4%

Exhibit 6
Coke vs. Pepsi, 2001
Income Statement and Balance Sheet Forecasts, Coca-Cola Co.
KO
Income Statement
Net operating revenue
Cost of goods sold
Gross profit

2001E
20,223
6,092
14,131

2002E
21,234
6,285
14,949

2003E
22,508
6,617
15,891

Selling expense
General & admin.

7,508
1,224
8,732

7,569
1,248
8,817

7,985
1,273
9,258

Operating income

5,399

6,132

6,633

295
(310)
197
24

244
(280)
227
(10)

254
(264)
261
(10)

Pretax Income

5,605

6,313

6,874

Income Taxes

1,682

1,894

2,062

Net Income

3,923

4,419

4,812

Other projected items:


Depreciation
Amortization
Cash taxes
Capital expenditures

489
295
1,738
700

542
295
1,957
750

597
295
2,131
750

Interest income
Interest expense
Equity income
Other income/(deductions), net

Accumulated goodwill amortization at the end of 2000 was expected to be $192 million.

Source (except for accum. goodwill amortization): Third Quarter Review of 10Q: Flat Revenue and Varied Operating Performance by A
Suisse First Boston Equity Research, November 19, 2001.

Exhibit 6
vs. Pepsi, 2001
nce Sheet Forecasts, Coca-Cola Co.

Balance Sheet
Cash & equivalents
A/R, Net
Inventories
Prepaid expenses & other
Total current assets
Investments in bottlers
Marketable securities
PP&E
Less: Acc. depreciation
Net PP&E
Goodwill & other
Total assets
A/P & accrued liabilities
Loans and notes payable
Current portion of long-term debt
Accrued income taxes
Total current liabilities
Long-term debt
Other
Deferred income taxes
Total liabilities
Common stock
Additional paid-in capital
Retained earnings
Accumulated other comprehensive losses
Treasury stock
Total equity
Total liabilities and equity

2001E
2,238
1,838
1,015
1,834
6,925

2002E
2,406
1,930
1,048
1,868
7,252

2003E
2,432
2,046
1,103
1,964
7,545

5,962
2,364
7,334
(2,935)
4,399
1,783
21,433

6,189
2,364
8,084
(3,476)
4,608
1,488
21,901

6,449
2,364
8,834
(4,073)
4,761
1,193
22,312

3,796
3,600
154
643
8,193

3,868
3,500
153
724
8,245

4,066
3,400
2
788
8,256

681
991
302
10,167

528
991
239
10,003

526
991
170
9,943

870
3,196
23,466
(2,722)
(13,543)
11,267

870
3,196
26,097
(2,722)
(15,543)
11,898

870
3,196
29,067
(2,722)
(18,043)
12,368

21,434

21,901

22,311

enue and Varied Operating Performance by Andrew Conway, Chris O Donnell and Corey Horsch, Credit

Exhibit 7
Coke vs. Pepsi, 2001
Income Statement and Balance Sheet Forecasts, PepsiCo

Pepsico
($ MM Except per Share Amounts)
Income Statement
Revenues
Beverages
Frito-Lay
Quaker Foods

2001E

2002E

2003E

10,553
14,498
2,042
27,093

11,307
15,373
2,109
28,789

12,116
16,273
2,179
30,568

1,667
2,675
408
(365)
4,385

1,818
2,955
426
60
(374)
4,885

1,976
3,239
446
90
(382)
5,369

148
157

92
186

37
239

Pretax Income

4,394

4,979

5,571

Provision for taxes

1,406

1,593

1,783

Net income

2,988

3,386

3,788

Other projected items:


Depreciation
Amortization
Cash taxes
Capital expenditures

900
236
1,142
1,860

950
295
1,245
1,583

1,000
295
1,504
1,528

Operating Profit
Beverages
Frito-Lay
Quaker Foods
Synergies
Corporate expense

Net interest expense


Equity income

Accumulated goodwill amortization at the end of 2000 was expected to be $751 million.

Source (except for depreciation, amortization, and accum. goodwill amortization): A Balanced Formula for Growth by Andrew Co

Credit Suisse First Boston Equity Research, November 8, 2001.

Exhibit 7
Coke vs. Pepsi, 2001
and Balance Sheet Forecasts, PepsiCo

Balance Sheet
Cash
Investments
Cash and equivalents

2001E
1,775
466
2,241

2002E
3,677
466
4,143

2003E
2,457
466
2,923

A/R, Net
Inventories
Prepaid Exp. & Other
Total current assets

2,292
1,284
886
4,462

2,435
1,364
942
4,741

2,585
1,449
1,000
5,034

PP&E
Intangibles
Investments in unconsol. affiliated
Other
Total assets

7,449
4,556
3,095
952
16,052

8,021
4,556
3,235
1,019
16,831

8,493
4,556
3,414
1,090
17,553

Short-term borrowings
Current portion of long term debt
Accts payable & other current liabs
Total current liabilities

202
281
5,017
5,500

444
5,284
5,728

64
5,573
5,637

Long term debt


Other liabilities
Deferred income taxes
Total liabilities

2,106
4,244
1,625
13,475

1,825
4,541
1,974
14,068

1,381
4,859
2,252
14,129

Preferred stock
Common stock & add'l paid-in capital
Retained earnings
Treasury stock
Accumulated comprehensive loss
Total equity

690
18,420
(8,434)
(1,394)
9,282

690
20,786
(8,434)
(1,394)
11,648

690
23,520
(11,434)
(1,394)
11,382

22,757

25,716

25,511

Total liabilities and equity

A Balanced Formula for Growth by Andrew Conway, Chris O Donnell and Corey Horsch,