The Coca Cola Company Financial Statement Analysis
The Coca Cola Company
One Coca Cola Plaza Atlanta, GA 30313
Exchange/symbol: NYSE / KO
Total portion-outs outstanding: 99.87 billion
The point of this tidings is to dissect and the financial collocation and debate the forces and decrepitudees of the financial operations of The Coca Cola Company, one of the largest manufacturers, distributors, and marketers of non alcoholic unmanly swallows, concentrates and syrups. The chief essential-quality is selling concentrates and syrups to bottling participators who veer these to artistic, canned and/or bottled, unmanly swallow products for retail and marketable disposal.
The crew owns raise than 450 brands including Sprite, Fanta, and Dasani, has 30 manufacturing facilities, and maintains seniority occupation in 136 participator facilities that effect in raise than 200 countries.
Financial Overview 2008
Sales $31.9 billion
Income $ 5.8 billion
Market significantization $99.87 billion
Earnings per portion-out (EPS) $ 2.49
Revenue per portion-out $13.67
Book appraise per portion-out $ 8.58
Key Financial Ratios
Coca Cola Company
Industry Medium 1
Current liabilities/net merit
Total liabilities/net merit
Fixed possessions/net merit
Sales/net agoing significant
Total obligation/completion possessions
Total obligation/completion equity
EBIT/reason (times reason)
Gross advantage boundary(bulk advantage/sales)
Net advantage boundary (net income/sales)
Return on sales
Return on possessions (ROI)
Return on net merit (ROE)
1 Activity mediums fascinated from MSN Money and Dun & Bradstreet
Analysis of Financial Ratios
Based on the prevalent relevancy Coca Cola must veer each dollar of prevalent possessions into at smallest $1.06 in money in command to engage its obligations. The prevalent sales equalize provides $2.63 for each dollar of possessions in labor. The prevalent relevancy, notwithstanding catalogue, is in verse delay the activity medium. Prevalent liabilities in bearing to catalogue and net merit comprehend a conspicuous rate compared to activity mediums. The medium assembly bound and receivables-to-sales are in verse delay activity mediums. However, most of Coca Cola’s competency relevancys are reason for solicitude. The equalize of recitals payables to sales is raise than twice the activity medium. The crew’s prevalent liabilities excel the prevalent possessions by $81.2 billion. Sales to net agoing significant is indirect and raises issues environing the crew’s agoing significant skillful-treatment policies and dramatizes the crew’s chief decrepitude. Obligation dramatizes the largest factor forcible portion-outholder equity. The crew’s advantageability relevancys all excel activity mediums which is it’s chief force.
It is significant to still n ess the texture of the crew’s asset disesteemed. Equity investments in bottling enterprises dramatize 14.3% of completion possessions. Intangible possessions including trademarks and liberality dramatize raise than 35% of completion possessions. There is no scarcity to veer these factors bereason these investments delay manufacturing and marketing participators wholly delay patents, trademarks, and indicate recollection recital for the amend than medium advantageability relevancys.
Coca Cola would profit from a contraction in near account obligation. Accounts payable and accrued expenses. Accounts payable and accrued expenses dramatize 47.7% of prevalent liabilities. The prevalent equalize of recitals payable and accrued expenses excels the prevalent equalize of completion equity investments, wholly money and marketable securities, and wholly recitals receivable and inventories, fascinated partially. The crew should bring the equalize of recitals payable and accrued expenses to a equalize where the crew’s equity investments excel them.
Coca Cola’s prevalent possessions are effectively nature veered into sales revenues. Liquidity is in verse delay activity mediums. Solvency is delayin a dispassionate stroll delay activity mediums but amend skillful-treatment of agoing significant, specifically prevalent liabilities is envelopd. The crew’s net agoing significant collocation is indirect and must be brought to unconditional equalizes. Coca Cola is extremely leveraged, besides the crew continues to be advantageable. As irrelative to attempting to raise acception the crew’s asset disesteemed, which would slight envelop usurpation of subjoined obligation, Coca Cola should bring the equalize of recitals payable and accrued expenses and the equalize of loans and still n esss payable to a equalizes that can be seasoned by the true equalizes of money, recitals receivables, inventories, and equity investments. Read also Johnson and Johnson financial analysis
Beverages Activity Profile: Global. (2009, March). Beverages Activity Profile: Global, Retrieved March 23, 2009, from Business Source Premier database.
The Coca Cola Company. 2008 Annual Tidings on Form 10-k. Retrieved March 23, 2009 from http://ir.thecoca-colacompany.com/phoenix.zhtml?c=94566&p=irol-financials
The Coca Cola Company. Item 8: Financial Statements and Supplementary Data. Retrieved March 23, 2009 from http://www.thecoca-colacompany.com/investors/pdfs/10-K_2008/Coca-Cola_10-K_Item_08.pdf
Dun & Bradstreet. SIC:2086, Bottled and Canned Unmanly Drink, All Asset Ranges. Retrieved March23, 2009 from Key Business Ratios database.
MSN Money. Coca-Cola Co: Key Ratios. Retrieved March 23, 2009