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Coca-Cola Co: Financial Statement Analysis

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Coca-Cola Co: Financial Statement Analysis
McDonald, Breeze ACC 501 Week #2 Instructor: Lakshmi Chennupati

Coca Cola Co

Short project financial statement analyst

Outline: Introduction Financial analyst Net cash from operating activities Comparison to industry Summary- company future References

Introduction: Coke and its catalogue of close to 400 brands, it was founded in 1886 by and Atlanta pharmacist John Pemberton and later trademarked in 1893. The Coca-Cola Company is the world 's largest beverage company and is the leading producer and marketer of soft drinks. Along with Coca-Cola, recognized as the world 's best-known brand. The Coca-Cola Co markets four of the world 's top five soft drink brands, including diet Coke, Fanta and Sprite. Through the world 's largest distribution system, consumers in nearly 200 countries get to enjoy Coca-Cola products everyday. Once a nerve stimulant and headache remedy the Coca Cola Brand has grown to be a house hold name and commodity. There are many reasons Coca-Cola tops Interbrand 's 2010 Best Global Brands study, followed by IBM and Microsoft. Financial analyst: Ratio Type Coca Cola Inc: Key Ratios Company: Coca Cola Industry Average

Current Ratio 1.3 1.0 Receivable Turnover 8.2 9.6 Debt to Equity 0.46 0.84 Net Profit Margin 23.6 19.3 Return on Equity 30.5 29.0 Price Earnings Ratio 18.7 18.2 http://moneycentral.msn.com/investor/invsub/results/compare.asp?Page=PriceRatio s&Symbol=KO http://finapps.forbes.com/finapps/jsp/finance/compinfo/Ratios.jsp?tkr=KO

Current Ratio = Total Current Assets / Total Current Liabilities
The Current Ration for Coca Cola Co is 1.3 to 1. Coca Cola does have enough assets to pay its debts.

Accounts Receivable Turnover Ratio =Annual Credit Sales / Average Accounts
Receivable Coca-Cola Co turnover is 8.2 compared to industry average of 9.6. The receivable turnover rate for Coca-Cola Co shows that the company has a higher turnover rate than industry. Americans are consuming less carbonated drinks and turning to other


References: http://finapps.forbes.com/finapps/jsp/finance/compinfo/CashFlows.jsp?tkr=KO http://moneycentral.msn.com/investor/invsub/results/compare.asp?Page=PriceRatios&Sy mbol=KO http://finapps.forbes.com/finapps/jsp/finance/compinfo/Ratios.jsp?tkr=KO http://money.cnn.com/magazines/fortune/globalmostadmired/industries/industry_6.html http://www.interbrand.com/en/best-global-brands/Best-Global-Brands-2010.aspx
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