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 numbers demonstrates that inventory has not been building up and has been selling at a moderate rate.
             The total asset turnover ratio of total indicates how both corporations are using their assets assets to generate revenue. Both PepsiCo and Schweppes show high numbers although PepsiCo's figure is well above in 1999. This indicates that PepsiCo is having a higher return on their assets, which can compensate for a low profit margin. By analyzing the total debt to stockholders equity we can view that Schweppes has improved this number indicating that is able to either paying off debt or increasing the amount of earnings retained in the business until after the balance sheet 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.
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