Comment on Why Is Coca Cola Generating Lower Returns Than PepsiCo?

Why Is Coca Cola Generating Lower Returns Than PepsiCo?

Despite this margin advantage, Coca Cola's ROE (return on equity) for 2014 stood at 22% (28% for 2012), lower than the 31% (29% for 2012) ROE generated by PepsiCo. Coca Cola has a higher margin than PepsiCo; however the latter seems to be using its capital more efficiently leading to a similar return on capital employed by both companies in the last two years.

 

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