Vol. 5 No. 3 (2026)
Articles

Analysis of Financial: A Comparative Analysis Between Coca Cola and Pepsi Cola Plc

Eyenubo Samuel Akpovwre
Department of Accounting, Faculty of Management Sciences, University of Delta Agbor.
Ogboi Emeke
Department of Accounting, Faculty of Management Sciences, University of Delta Agbor.

Published 2026-08-06

Keywords

  • Coca-Cola, PepsiCo, financial performance, profitability, liquidity, solvency, financial analysis, revenue growth, debt management, operational efficiency, financial stability, multinational corporations, beverage industry, return on equity, gross profit margin.

How to Cite

Akpovwre, E. S., & Emeke, O. (2026). Analysis of Financial: A Comparative Analysis Between Coca Cola and Pepsi Cola Plc. Scholarly Journal of Social Sciences Research, 5(3), 1-13. https://doi.org/10.46654/55gk0346

Abstract

Coca-Cola and PepsiCo, two of the world’s biggest and most well-known companies in the global beverage industry, are compared based on their financial performance. The main aim of this study is to evaluate and compare the financial position, profitability, liquidity, and solvency of these two companies for a ten-year period from 2015 to 2023. As part of the analysis, important financial metrics like revenue, net income, return on equity, gross profit margin, and debt to equity ratio are examined with the goal of understanding the strengths and weaknesses of each company’s financial strategy. The results show that the two companies have strong finances, but use different approaches. On the profitability front, Coca-Cola is ahead, having a higher gross profit margin and one of the strongest ROA of all companies, whereas Pepsi wins in terms of revenue growth and probably higher earnings per share. Pepsi has a more prudent approach to debt management, whilst Coca-Cola’s higher financial leverage as it relies heavily on debt financing. The report identifies Coca-Cola’s operational efficiency and profitability as competitive strengths while Pepsi’s diversification and broader product portfolio underpin its strong growth. Both companies are financially sound and able to compete in the beverage industry, but their approaches reflect how businesses balance risk and profitability. It is recommended that companies diversify their portfolios, increase liquidity and invest in sustainability initiatives. Together, these findings add to the field’s understanding of financial management in multinational corporations and how companies have to walk a fine line between risk, growth and financial stability.

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