Ratio analysis of coca cola company pdf

The global environment subjects a corporation to several pressures. With the use of ratio analysis liquidity, profitability, and solvency can be calculated. Coca cola consolidateds current ratio for the quarter that ended in dec. This paper will show that coca cola is a more preferable investment option. Bright investments consultancy student name 1 executive summary pepsi whose. Coca cola enterprises is the primary producer of coca cola products in western europe, although it is headquartered in atlanta ga, and its stock is traded on the new york stock exchange nyse. Download as docx, pdf, txt or read online from scribd. Nonalcoholic beverages industrys price to sales ratio is at 2. Over the past decade, coca cola has been experiencing a decline in sales due to increasing health and obesity concerns.

Introduction coca cola company is a beverage company that produces and distributes a number of nonalcoholic drinks all over the globe. Doc financial analysis of coca cola company vs pepsico. Coca cola cos current ratio for the quarter that ended in dec. Companies are doing business across large regions spanning several. The difference between quick ratio and current ratio is the exclusion of inventory on the former. The current ratio is a liquidity ratio that measures a company s ability to pay shortterm obligations. Major case analysis carbonated soft drinks 33% of beverage industry already happening nationwide coca cola is. Ratio analysis of cocacola free download as powerpoint presentation.

Your paper should consist of the following sections. Ratio analysis of cocacola stocks return on equity. The balance sheet is a financial report that shows the assets of a business i. Coca cola current ratio analysis current ratio is calculated by dividing the current assets of a company by its current liabilities. A solvency ratio calculated as adjusted total debt divided by adjusted total equity.

The cocacola company major case analysis by brian scheurer. Cocacolas financial ratios grouped by activity, liquidity, solvency, and profitability. This particular project is based on ratio analysis of cocacola international. This is a detailed comparison of the two companies performance, with various ratio analysis determined projected future company performance that are the basis of the investment inferences made.

Financial analysis of coca cola company vs pepsico. A liquidity ratio calculated as current assets divided by current liabilities. Sep 07, 2015 conclusion, overall analysis s cocacola is performing much better than pepsi co. This shows that the firm should remain financially solvent in the short term. Analysis of coca cola company essay 2697 words bartleby. Cocacolas net profit ratio and debt equity ratio is better than pepsi co. The coca cola hbc is a company which is formed as a result of a merger between coca cola beverages ltd and hellenic bottling company. Jan 10, 2020 this coca cola swot analysis reveals how the company controlling one of the most iconic brands of all time used its competitive advantages to become the worlds second largest beverage manufacturer. Cocacola coke financial statements and financial ratios. The current company valuation of coca cola hbc ag is therefore way below its valuation average over the last five years. Brand equity interbrand in 2011 awarded coca cola with the highest brand equity award. Coca cola international the coca cola company is the worlds largest company. Ten years of annual and quarterly financial ratios and margins for analysis of coca cola ko.

Coca cola company is a beverage company that produces and distributes a. Coca cola is the most valuable company of the world and it includes as products fanta, coca cola zero, powerade, and minute maid the coca cola company, 2010. The report is based on the study of the fiscal competence and presentation of the corporation based on the financial stability. Coca cola international the cocacola company is the worlds largest company. The financial analysis is to diagnose the information contained in financial statements so. Cocacolas financial ratio summary from 2014 to 2018. How ever it will take some time to compete with the beverage giant, coke. I hope my this effort will help other interested students.

In this example, the analysis is focused on coca cola company and pepsico, and their financial pictures for the years 2004 and 2005. S we cannot neglect the fact that pepsi has been consistent with its performance over the past years. This analyst has no position in the security discussed in this research report, and no plans to initiate one in the next 72 hours. Cocacola ratio analysis priceearnings ratio revenue. Factors such as competitors, market size, and trends in the industry affect cocacola and its strategic decision making. We have conducted a comparative analysis of the balance sheet and the income statement of coca cola company the hereafter the company for the year 2019 submitted to the u. Financial analysis of the coca cola company uk essays. I have analyzed two years financial performance of coke i. The coca cola company ko updated february 19th, 2020 by josh arnold disclosure. The company has 4 out of the top 5 soft drinks worldwide including coca cola, fanta, diet coke and sprite. Coca cola with its vast global presence and unique brand identity is definitely one of the costliest brands with the highest brand equity.

This report analyses coca colas financial performance during the period from. A financial analysis of the coca cola company is presented in the report which includes a ratio analysis, basic profit and loss analysis, presentation of the company balance sheet, and much more. The nonalcoholic beverages brand coca cola operates in the global environment. Cocacola ratio analysis priceearnings ratio revenue scribd. It is calculated as a company s total current assets divides by its total current liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The primary business activity of the company is beverages sic code 208.

Finally, dupont analysis method is used to analyze cocacolas financial ratios. However, the report will structure itself through the brief introduction of each company s detailed view of company s financial health depending upon the annual reports of. According to these financial ratios coca cola hbc ags valuation is below the market valuation of its sector. Coca cola swot analysis 6 key strengths in 2020 sm insight.

Doc financial statement analysis for coca cola co and. Group members wajid ali 3335 haris riaz 3382 presented to. Competition from pepsico remains the main threat for coca cola. On their own, these ratios wont offer more than just a number. To understand the financial position of the coca cola company, we now begin ratio analysis by calculating 10 of the 2012 financial ratios using data from the balance sheet and income statement in the 2012 ccc annual report. Instead, they can be used as comparable metrics by comparing a companys. Introduction the cocacola company is the world largest beverage company. The evebitda ntm ratio of coca cola hbc ag is significantly lower than its historical 5year average. Find out how the cocacola company is achieving sustainability goals around water stewardship, packaging and more. The organisation markets all products of coca cola including coca cola, coca cola light. Today, the world market has grown highly globalized.

Its portfolio includes a variety of carbonated and noncarbonated brands, including coca cola, diet coke, fanta, sprite, minute maid, powerade, and dasani. Company overview, comparison of accounting methods, ratio analysis, final recommendation, conclusions. Globally, cocacola is more dominant and has a majority of the global market share. This means that they could only pay up 80% of current liabilities. Liquidity ratios current ratio current ratio current asset current liability 30328 278211. Apr 23, 2015 organizational analysis the coca cola company it entails carrying out evaluation on the processes of a company and those employed to run such processes. Along with cocacola, recognized as the worlds most valuable brand, the company markets four of the worlds top 5 nonalcoholic sparkling brands, including diet coke, fanta, and sprite. Cocacola financial ratios for analysis 20052020 ko macrotrends. Analysis of the cocacola company research and markets. Organizational analysis the cocacola company it entails carrying out evaluation on the processes of a company and those employed to run such processes. Nov 12, 2018 in this analysis, you will discuss the financial health of these companies with the ultimate goal of making a recommendation to other investors. Ten years of annual and quarterly balance sheets for coca cola ko. Coca cola financial analysis essay 6376 words bartleby. A swot framework analysis of the coca cola company and its competitors completes this indepth company analysis.

As for the company s fixed asset turnover, this shows increased efficiency. Coca cola co ko fundamental analysis, stock research. Coca cola company case study gb 518 financial accounting principles and analysis kaplan university summary accounting is an important aspect of business because it is the foundation that offers support to management for planning, and controlling activities as well as decisions. Cocacola company the ko financial analysis and rating. In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position of cocacola hbc ags the company and its subsidiaries together the group as at 31 december 2017, and of its consolidated financial performance and its. Cocacola s current ratio has stayed steady between 1. Because of this, coca cola has come up with long term objectives. Cocacola financial ratios for analysis 20052020 ko. The cocacola company is the worlds largest beverage company. Pepsi vs cocacola financial analysis essay 2063 words.

This is because conversion of inventory to cash does not happen overnight and may take time depending on the product. The beverage industry analysis gives a synopsis of the trends in the industry that cocacola is a part of. Comparative financial statement analysis of the cocacola. Swot analysis of coca cola company essay 780 words 4 pages. The coca cola brand is globally valued and recognized. Coca cola is the largest beverage company of the world, and it provides consumers with more than five hundred different brands. Essay on coca cola financial analysis 84 words cram. The organisation is listed in lse as its main market but this shift only occurred in 2012. Financial analysis of pepsi and coca cola synopsis of companies pepsi and coca cola companies boast of having two of the most recognized and preferred or desired beverages in the whole world. A financial analysis of coca cola 2473 words 10 pages.

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