Pepsico And Coca Cola Company Economics Essay

Pepsico And Coca Cola Company Economics Essay I chose these companies because I have an interest in the way that they are profitable in the global market. PepsiCo was founded in 1932 by the merger of the then known Frito-Lay Company. The founders of PepsiCo are Donald M. Kendall, President and CEO and Herman W. Lay, Chairman and CEO of Frito-Lay. However Pepsi-Cola was formulated in 1898 by a Caleb Bradham, a pharmacist. Coca-Cola was formulated in 1886 by Dr. John Pemberton. In downtown Atlanta Pemberton sold the syrup with carbonated water for five cents a glass. Both companies grew dramatically since their humble beginnings. Thesis Statement The purpose of this paper is to compare PepsiCo and Coca-Cola Companys financial standing between the two companies using ratios and financial analysis from five ratio categories. Liquidity The methodology used is the ratios for liquidity. Liquidity is the ability to quickly turn assets in to cash. Liquidity is also characterized by high levels of trading activity. Assets that can be easily obtained and sold are known as liquid assets. A business with a decent amount of liquidity can mean that the business can pay off its expenses. Current Ratio Calculation: Current Ratio = Current Assets/ Current Liabilities PepsiCo Current Ratio PepsiCo current ratio = 0.95 Coca-Cola Current Ratio Coca-Cola current ratio = 1.05 Conclusion: When comparing PepsiCo and Coca-Cola current ratio in 2011 both are successful at easily converting assets into cash. Coca-Cola has a greater ratio than PepsiCo by .10. It can be said that from this ratio that one can invest in either company and they will make a return if dividends are declared. Asset Turnover: Asset turnover shows how the amounts of sales that can are generated for every dollar worth of assets. The higher a firms asset turnover the more efficiently its assets have been turned in to cash. Investors went to invest in companies that can turnover assets easily. Asset Turnover Calculation: Asset Turnover = Total Revenue/ Total Assets PepsiCos Asset Turnover PepsiCo asset turnover = 0.9 Coca-Colas Asset Turnover Coca-Cola asset turnover = 0.7 Conclusion: In the comparison between PepsiCo and Coca-Cola; PepsiCo has a greater turnover than Coca-Cola. PepsiCo turnover is 0.2 higher than Coca-Cola. This means that PepsiCo is more successful in turning sales in dollars. Debt Ratios A debt ratio measures how well a firm can pay off its debt. The larger the debt ratio the more likely that a creditor was used to create a profit for the business. The greater the debt the greater the risk for the business to pay off its debt. Debt Ratio Calculation: Debt Ratio = Total Liabilities/ Total Assets PepsiCo Debt Ratio PepsiCo = 0.93 Coca-Cola Debt Ratio Coca-Cola = 0.41 Conclusion: The comparison with PepsiCo and Coca-Cola shows that Coca-Cola has a smaller debt ratio than PepsiCo. PepsiCo has a greater risk than Coca-Cola does by 0.52 or 52%. PepsiCo has a greater risk of not being able to pay back its debt. Profitability: There are different ways to measure the profitability of a business. Using Profit Margin is just one of the many measurements that can be used. Knowing how profitable a company is allows investors the chance that they will turn a profit from investing in that company. Investors may also want to look at the companys income statement to evaluate a companies profitability along with a companys profit margin. Profit Margin Profit Margin = Operating Profit/ Revenue PepsiCos Profit Margin: PepsiCo = 9.69% Coca-Colas Profit Margin: Coca-Cola = 18.42% Conclusion: In comparing Coca-Cola and PepsiCo One can see that Coca-Cola have more profitability than PepsiCo does by almost double. Investors would most likely invest in Coca-Cola based on these results. Marketability: Market ratios convey the market value of a firm. The valuation of a firms current share price compared to the firms pre-share earnings. High P/E proposes that investors are expecting a growth in earnings in the future. It shows how investors see the firm whether its a risk or reward. Price/Earnings Ratio Formula: P/E Ratio = Market Price per share/ Earnings per share PepsiCos P/E Ratios: Current P/E Ratio = 15.7 P/E Ratio 1 Month Ago = 16.4 P/E Ratio 26 Weeks Ago = 16.1 P/E Ratio 52 Weeks Ago = 16.3 Coca-Cola P/E Ratios: Current P/E Ratio =18.7 P/E Ratio 1 Month Ago = 18.4 P/E Ratio 26 Weeks Ago = 12.8 P/E Ratio 52 Weeks Ago = 12.7 Conclusion: It is clear that Coca-Cola has a higher price/earnings ratio that PepsiCo. Coca-Colas Ratio was a drastic change from a month ago to 26 weeks ago it jumped to 6.5. Investors would see a better turn out from this output of information from Coca-Cola. Conclusion: According to this information I would advise an investor to invest in Coca-Cola based on the information that was provided. I would however be reluctant to advice investors to invest in PepsiCo based on factors presented such as; lower profitability, lower Price/Earnings, and higher debt ratio than Coca-Cola.

Men At Forty The Aging Process :: Forty

Men At Forty  Ã‚   The Aging Process Men At Forty  Ã‚   If asked what is the most miraculous thing in the world, most people would say that birth is definitely in the top five.   But, does anyone ever say that getting older, or even dying, is anywhere close to being a miracle?   Though we don’t look at it that way, it actually is a miracle in its own right.   The whole process of living and breathing, knowing that the end will eventually come is mind-boggling.   People just go about every day as if nothing were happening to them. When in all regards, life is slowly being siphoned from their bodies.   With life, there is a continuous cycle that can never be prevented.   Donald Justice makes this realization of life, and the awaiting death, evident in his poem â€Å"Men At Forty† by using a superb combination of imagery, symbolism and tone.     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Through his use of imagery, Justice plugs the reader directly into the body of an aging man letting them experience the trials of growing old.   â€Å"At rest on a stair landing,/ They feel it† (5-6) projects an unmistakable picture into the reader’s mind of an older man taking a rest while climbing a flight of stairs.   This, in turn, greatly enhances the focus of the reader letting the poem burrow deep into the psyche and fashion a firm basis in the acceptance of age.   Justice also manifests an image of when the man stands and peers deep into a mirror how, â€Å"They rediscover/ The face of the boy as he practices tying/ His father’s tie there in secret† (9-11).   Throughout the poem, Justice paints the picture of aging.   But, he also gives reference to where the inevitable events of life will lead.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Though Justice’s use of imagery portrays a vivid picture, his use of symbolism about death strikes the reader even harder.   Right from the start Justice grips the reader with a reference to death by saying â€Å"Learn to close softly/ The doors to rooms they will not be/ Coming back to† (2-4).   This tells the reader that no matter what we are all human.   As the poem continues, aging is brought out to be the main idea but, in the last two stanzas, Justice once again shows us that death is coming;   â€Å"Something is filling them, something/ That is like the twilight sound/ Of the crickets, immense,† (16-18).

Analysis of Factors Influencing Attrition in It Sector Essay

With the economy of India booming at an all time high despite the impact of recession, it is an employee’s market. A large number of multiple jobs are being circulated in organizations and across industries, employees take little time to ponder and leave for greener pastures. In the event the employee feels dissatisfied with his job content, colleagues, boss or a general feeling of discontentment, disillusionment or disappointment creeps in him, considering present market conditions he need not think twice but can easily chucks for good. But obviously it is not good for the employers. Organizations spend a major buck in inducting an employee, beginning from the recruitment process to his internalization in the organization. After reaping rich benefits in the organization in terms of learning, growth, development and availing every possible opportunity in that time span he feels he should go. The HR department is left in the hanging as how to fill in the gap between the demand and supply in terms of human resources. But it helps organizations understand why at all attrition takes place. Why at all at the first place did the idea for leaving come in the mind of the employee. And if at all it came, then why the organization was not pro-active enough to have sensed his dissatisfaction. Furthermore why was it not well equipped to have stopped him from leaving? The entire cycle is vicious. Normally no one welcomes change unless it is forced to be applied. Similarly when an employee joins the organization, he really has no intension of leaving. Circumstances and conditions arise which make him think towards cutting ties. If negative conditions continue to exist then he is confirmed to leave. We all know people do crib about money, not good perks and facilities but if they are happy they stay for the sake of that happiness. People also join organizations for their need for socialization. When they form friends at their work stations; they look forward coming to office every morning. People leave because of boredom and disenchantment from everything. They find no other recluse other than leaving towards somewhere else.

Liquidity Trap Defined A Keynesian Economics Concept

The liquidity trap is a situation defined in Keynesian economics, the brainchild of British economist John Maynard Keynes (1883-1946). Keynes ideas and economic theories would eventually influence the practice of modern macroeconomics and the economic policies of governments, including the United States. Definition A liquidity trap is marked by the failure of injections of cash by the central bank into the private banking system to decrease interest rates. Such a failure indicates a failure in monetary policy, rendering it ineffective in stimulating the economy. Simply put, when expected returns from investments in securities or real plant and equipment are low, investment falls, a recession begins, and cash holdings in banks rise. People and businesses then continue to hold cash because they expect spending and investment to be low creating is a self-fulfilling trap. It is the result of these behaviors (individuals hoarding cash in anticipation of some negative economic event) that render monetary policy ineffective and create the so-called liquidity trap. Characteristics While people’s saving behavior and the ultimate failure of monetary policy to do its job are the primary marks of a liquidity trap, there are some specific characteristics that are common with the condition. First and foremost in a liquidity trap, interest rates are commonly close to zero. The trap essentially creates a floor under which rates cannot fall, but interest rates are so low that an increase in the money supply causes bond-holders to sell their bonds (in order to gain liquidity) at the detriment to the economy. The second characteristic of a liquidity trap is that fluctuations in the money supply fail to render fluctuations in price levels because of people’s behaviors. Criticisms Despite the ground-breaking nature of Keynes ideas and the world-wide influence of his theories, he and his economic theories are not free from their critics. In fact, some economists, particularly those of the Austrian and Chicago schools of economic thought, reject the existence of a liquidity trap altogether. Their argument is that the lack of domestic investment (particularly in bonds) during periods of low interest rates is not a result in people’s desire for liquidity, but rather badly allocated investments and time preference. Further Reading To learn about important terms related to the liquidity trap, check out the following: Keynes Effect: A Keynesian economics concept that essentially disappears in the wake of a liquidity trapPigou Effect: A concept that describes a scenario in which monetary policy could be effective even within the context of a liquidity trapLiquidity: The primary behavioral driver behind the liquidity trap