In the global consumption of soft drinks, two global leaders that need no introduction to young and old are Coca Cola and PepsiCo Inc. However, these cola drinks are also called "Pop" or "soda", most people just order Coke or Pepsi, please. Over the past 100 years, the two companies have competed to bring a new twist to the consumer, introducing new soft drinks, offering taste tests to the public, and doing the unthinkable when Coke tried to change the basic formula Coke learned a valuable lesson from its devoted consumers: they won't support it. not a radical change in a product they love so much In this article, we will explore the financial comparison of each company, a vertical and horizontal analysis of each company and finally, recommendations to improve the financial situation of each company. I will start with vertical analysis but first, what does vertical analysis mean? is a method of financial analysis in which each entry for each of three major categories of accounts (assets, liabilities, and stocks) in a balance sheet is represented as a proportion of the total account. The main advantages of analyzing a balance sheet in this way are that balance sheets of companies of all sizes can easily be compared. It also makes it easy to visualize relative annual changes in a company (Weygandlt, Kimmel & Kieso 2008). The vertical analysis correlates to the base amount as a percentage, and the base amount corresponds to each company's total balance sheet at the end of the fiscal year. To obtain the percentage amount, you must refer to the balance sheet and divide it by the total assets of each company. The total assets of each...... middle of paper ......r metal cans, which can supply on-site soft drink facilities, instead of shipping plastic cans or bottles on great distances. The ability to have plastic can manufacturing on site would eliminate the need for transportation costs and warehouse space to store empty cans or bottles on site. One step closer ; I would consider eliminating warehouse operations and completely outsourcing warehouse operations to a company that specializes in this area. In making these difficult and unpopular decisions, you need to look at your core business and ask yourself if you are in the soft drink packaging business and what value/benefit these operations bring to stakeholders. Here are some recommendations I would make from my knowledge of how filling/packaging/warehousing works that I think could help both PepsiCo Inc and Coca Cola..