business analysis

Financial Analysis The current ratio shows the ability of the business to generate cash to meet its short-term obligations. Both PepsiCo and Cadbury Schweppes had in increase in their current ratio demonstrating an increasing ability to generate cash. Also by analyzing the quick ratio, often called the acid test, a better picture of PepsiCo's and Schweppes's ability to meet their short-term obligations is visible; regardless of the sales levels. The salability in 1998 and 1999 in the …

…date. While PepsiCo's figures have dropped tremendously. The interest-covered ratio indicates that a high figure will demonstrate how effectively a corporation is to meet interest payments. Both PepsiCo and Schweppes include higher ration in 1999 and demonstrate a decrease in their financial risk. The return on assets ratio basically measures how well the business is using its assets to produce more income. Both numbers indicate an increase from 1998 to 1999 although PepsiCo's figures are higher. ------------------------------------------------------------------------ **Bibliography**