Cocacola Analysis
1. An ‘eye-ball’ assessment of the changes in Coke’s financial statements between 1996 and 2010—e.g., overall growth in assets, revenues, equity, debt, etc.
An eyeball assessment of the changes in Coke’s financial statements between 1996 and 2010 show that mainly all accounts are up. The total assets are up from 1996 to 2010 with an increase from $16,161 to $72,921. Also current assets increased 3.6% from 1996 to 2010 with total non-current assets increasing 5%. Revenue nearly doubled from 1996 having only $18,546 to increasing in 2010 to $35,119. The total current liabilities increased over the years from $7,406 to $18,508. The total long term liabilities also show an increase from 1996 having $2,599 to $23,410 in 2010. Also the shareholders equity increased greatly over the years from $6,156 to a total of $31,003 in 2010.
2. Analysis of the Common-size statements—i.e., what changed and why. That is, describe the changes in these statements and analyze the cause of the changes.
Coca-Cola Common-Size Statements of Income and Retained Earnings for December 1996 and 2010 1996 % 2010
Revenue $18,546 $35,119
Cost and Expenses Cost of Sales $6,738 36% $12,693 36%
Gross Profit $11,808 64% $22,426 64% S, G, and A $7,893 43% $13,977 40% Interest Charges $286 2% $733 2% Other Income/Expenses (net) ($967) -5% $6,527 19% Total Cost and Expenses $13,950 75% $20,876 59%
Income before Income Taxes $4,596 25% $14,243 41%
Provision of Income Taxes $1,104 6% $2,384 7%
Other Income ($50) -0.1%
Net Income $3,492 18.80% $11,809 34%
Dividends (% of NI) ($1,247) 36% ($4,068) 34%
Adjustments to Retained Earnings $0 $0
Retained Earnings, Beginning Balance $12,882 $41,537
Retained Earnings, Ending Balance $15,127 $49,278
In analyzing Coca-Cola’s (Coke) financial statements, balance sheet, and statements of income and retained earnings for 1996 and 2010 we can see positive
An eyeball assessment of the changes in Coke’s financial statements between 1996 and 2010 show that mainly all accounts are up. The total assets are up from 1996 to 2010 with an increase from $16,161 to $72,921. Also current assets increased 3.6% from 1996 to 2010 with total non-current assets increasing 5%. Revenue nearly doubled from 1996 having only $18,546 to increasing in 2010 to $35,119. The total current liabilities increased over the years from $7,406 to $18,508. The total long term liabilities also show an increase from 1996 having $2,599 to $23,410 in 2010. Also the shareholders equity increased greatly over the years from $6,156 to a total of $31,003 in 2010.
2. Analysis of the Common-size statements—i.e., what changed and why. That is, describe the changes in these statements and analyze the cause of the changes.
Coca-Cola Common-Size Statements of Income and Retained Earnings for December 1996 and 2010 1996 % 2010
Revenue $18,546 $35,119
Cost and Expenses Cost of Sales $6,738 36% $12,693 36%
Gross Profit $11,808 64% $22,426 64% S, G, and A $7,893 43% $13,977 40% Interest Charges $286 2% $733 2% Other Income/Expenses (net) ($967) -5% $6,527 19% Total Cost and Expenses $13,950 75% $20,876 59%
Income before Income Taxes $4,596 25% $14,243 41%
Provision of Income Taxes $1,104 6% $2,384 7%
Other Income ($50) -0.1%
Net Income $3,492 18.80% $11,809 34%
Dividends (% of NI) ($1,247) 36% ($4,068) 34%
Adjustments to Retained Earnings $0 $0
Retained Earnings, Beginning Balance $12,882 $41,537
Retained Earnings, Ending Balance $15,127 $49,278
In analyzing Coca-Cola’s (Coke) financial statements, balance sheet, and statements of income and retained earnings for 1996 and 2010 we can see positive