In its 2009 annual report, Coca Cola Co reported sales of 30.99 billion for fiscal yr 2009 and 31.94 billion for fiscal yr 2008. The company also reported operating income (roughly equivalent to EBIT) of 8.23 billion in 2009 and 8.45 billion in 2008. Meanwhile rival PepsiCo reported sales of 43.23 billion in 2009 and 43.25 in 2008. PepsiCo's operating income was 8.04 billion in 2009 and 6.96 billion in 2008. Based on these figures, which company had higher operating leverage?
I found my answers to seem very off. Can you check my work?
Coca Cola EBIT -0.22/8.23 = -0.0267 Sales -0.95/30.99= -0.0307
Operating leverage = -0.0267/-0.0307= 0.872 = 8.7%
Pepsi EBIT 1.08/8.04 = 0.134 Sales -0.02/43.23 = -0.0005
Operating leverage = 0.134/-0.0005 = -290.35 = -290%