• US company info
• Edgar forms types: 10-K (annual report)

Pepsi

• on Edgar
• website
• 2004 Annual report (edgar)
  • cash flows

Coke

• on Edgar
• website
• 2004 annual report
  • cash flows

Inventory turnover

• Calculate the inventory turnover and days to sell the average inventory for the current year-end, and for the previous year-end (please refer to part 1. for the sources of the opening inventory number for the previous year)
• pages 339-340
• turnover rate = cost of goods sold / average inventory
• average inventory = avg(starting + finishing)
• days to sell inventory = 365/turnover
• Pepsi
  • COGS: 13,406,000,000 (2004) - 12,379,000,000 (2003)
  • inventory: 1,541,000,000 (2004 end) - 1,412,000,000 (2003 end) - 1,342,000,000 (2002 end)
    • 1,476,500,000 (2004 average) - 1,377,000,000 (2003 average)
  • 2004 year-end: turnover rate 9.07958009 - days to sell 40.200097
  • 2003 year-end: turnover rate 8.98983297 - days to sell 40.6014218
• Coke
  • COGS: 7,638,000,000 (2004) 7,762,000,000 (2003)
  • inventory: 1,420,000,000 (2004 end) - 1,252,000,000 (2003 end) - 1,294,000,000 (2002 end)
    • 1,336,000,000 (2004 average) - 1,273,000,000 (2003 average)
  • 2004 year-end: turnover rate 5.71706587 - days to sell 63.8439382
  • 2003 year-end: turnover rate: 6.0974077 - days to sell 59.8615048

conclusion

Regarding turnover rates, Pepsi is clearly in a better position than Coke, with regards to the changes from 2003 to 2004. While Pepsi's rate increased slighly (about 1%), Coke's decreased by over 6%, which means that Coke is not selling it's products as quickly as it used to.