Question

Calculate the following leverage ratios for PepsiCo and Coca-Cola based on their 2018 balance sheet found...

Calculate the following leverage ratios for PepsiCo and Coca-Cola based on their 2018 balance sheet found on company website:

  • Liabilities to Assets Ratio
  • Liabilities to Shareholders' Equity Ratio
  • Long-term Debt to Long-term Capital Ratio
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Answer #1

Leverages of Pepsi and Coco cola as per 2018 balance sheet

Balance sheet data for the year 2018

PEPSI COCO COLA

Total Assets = $77648

Current liabilities= $22138

Total long term Liabilities= $40908

Total liabilities= $63046

Total Shareholder equity = $14602

Total Assets = $83216

Current liabilities= $28782

Total long term Liabilities = $35376

Total liabilities = $64158

Total Shareholder equity = $19058

Leverages as per 2018 (Amount in $)

Particulars Pepsico CocoCola

Liabilties to asset ratio =

Total Liabilities / Total Asset

63046/77648 =0.812

  

64158/83216= 0.771

Liabilities to shareholders equity ratio=

Total debt / Total equity

63046/14602=4.32

64158/19058=3.37

Long term Debt to Longterm capital ratio=

Long term debt / LOng term debt + share holders equity

 40908/40908+14602=0.74 35376/35376+19508=0.64
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