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Finance & Accounting
Pages 6 (1506 words)
Financial Management Contents Contents 2 Introduction 3 Current liabilities 3 Overall performance 4 Investments 5 Pepsi Overall Satisfaction 6 Coke Overall Satisfaction 7 Stockholder Satisfaction 7 Financial Based Guidelines 8 Invest or Not Invest 8 Reference 9 Appendix 11 Introduction Investment is a vital activity which requires various types of analysis to be done.
Various ratios have been calculated to analyze the financial strength of the company. The overall performance of the companies during the year 2009 has also been analyzed. The nonfinancial parameters which are important to judge the company from the point of view of an investor has also been discussed in this project. Current liabilities Current liabilities can be defined as the liabilities which have to be met during the year or in other words those obligations which have to be met in a year are termed as current liabilities (Bragg, 2011, p.39). Therefore the current liabilities have to be managed properly by every company. The current liabilities are met by current assets. Current assets are those assets which can be transformed into cash within one year. These are the short term assets which are held by the company to meet its short term obligations. The liquidity position of the company is determined by the current assets and the current liabilities. To determine the liquidity position of the Coca-Cola Company and PepsiCo, the current ratio and the quick ratio has been calculated. Current ratio signifies that the current liabilities of the company are backed by how many current assets. It is calculated by dividing the current assets be the current liabilities (Investopedia-a, n.d.). ...
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