Essay on Coca-Cola Financial Analysis

Words: 2275
Pages: 10
Open Document
Introduction
The Coca-Cola recipe was originally founded and formulated by John Pemberton at the Pemberton’s Eagle Drug and Chemical House. By 1885, the product was registered as a French Wine Coca as a patent medicine. Pemberton claimed Coca-Cola cured morphine addiction, dyspepsia, neurasthenia, headaches and impotence. The carbonated drink began its first sales at Jacob’s Pharmacy in Atlanta, Georgia on May 8, 1886 for 5 cents a glass with its first advertisement in the Atlanta Journal on May 29, 1886. It wasn’t until 1955 when cans of Coke started to make its first appearance (Official Coca-Cola website).
By the 21st century, Coca-Cola is proclaimed to be the world’s largest beverage company sold in more than 200 countries. …show more content…
As this would indicate the company is financially stable.

Quick Assets: 2011 2012

Cash $12,803 $8,442
Temporary Investments 1,088 5,017
Marketable securities 144 3092
Accounts Receivable 4,920 4,759
TOTAL QUICK ASSETS $18,955 $21,310

CURRENT LIABILITIES $24,283 $27,821
QUICK RATIO 0.78 0.77

Solvency and Leverage Ratios
Coca-Cola’s Times Interest Earned ratio for FY2011 and FY2012 were calculated by utilizing the company’s consolidated balance sheets to complete the following formula; ‘Income before income tax plus interest expense divided into the interest expense to reach the ratios of 28.5 and 30.7.
The times interest earned ratio is a metric used to measure a company’s ability to meet its debt obligations. The ratio indicates how many times a company can cover its interest charges on a pretax basis because failing to meet such obligations could force a company into bankruptcy. Ensuring interest payments to debt holders and preventing bankruptcy depends mainly on a company’s ability to sustain earnings. The higher the times interest earned ratio, the more likely is that company able to meet its interest payments. Coca-Cola obviously meets this ability.

(In millions) 2011 2012

Income before income tax $11,458
Show More

Related Documents: Essay on Coca-Cola Financial Analysis

Xacc280 Week 2

Financial Analysis XACC280 January 26, 2014 Financial Analysis Even though just numbers can give you an idea, financial information has to be taken in a critical manner to be completely useful, because without it, it may lead to a wrong investment decision while complete information may give a better reasoning. A good review of vertical analysis, horizontal analysis, liquidity ratio, solvency ratio, and profitability ratio, will help consider to have a full perspective to make a good decision…

Words 1277 - Pages 6

Xacc220 Final Essay

| | |Financial Analysis | |Of Coca-Cola and PepsiCo. Inc. | |…

Words 1701 - Pages 7

Is pepsi better than coke Essay examples

Pepsi vs. Coke By: Jared Madison The Coca Cola Company was founded in 1892, after the formulation of the carbonated soft drink by John Pemberton in response to an increased demand for non-alcoholic drinks after prohibition took effect in his hometown and made sale of alcohol illegal. Since then, the company has grown into a giant of the soft drink market, with more than 35 billion dollars in revenue and 73 billion dollars in total assets. Their remarkable growth…

Words 1590 - Pages 7

Pepsi Financial Comparison Paper

Coco Cola and PepsiCo. are the two largest companies in the non-alcoholic beverage industry. Coca-Cola focuses entirely on beverages, while PepsiCo sells both beverages and food products. Both companies supply much more than soda and have mature within the last decade at around 9% a year. As shown above, PepsiCo recently had a dividend yield of 2.45% in 2014 while Coca-Cola had a 1.78% dividend yield. Further, both companies' strong brand portfolios provide stable cash flows which in turn gives both…

Words 692 - Pages 3

Essay on BSA555 Struense Richard WK 5 Financial Ratios Coca Cola

Week 5 – Financial Ratios – Analysis: Coca-Cola Richard Brent Struense Averett University Strategic Management – BSA555-M703-SP15 Instructor: Dr. Philip R. Sturm April 9, 2015 Executive Summary The purpose of this analysis is to identify the financial strategy and performance of the Coca-Cola Company, Pepsi, and Monster. Financial ratios are correlations established from a firm’s financial information and used for comparison purposes. Generalized financial ratios include Liquidity Ratios…

Words 1299 - Pages 6

Xacc 280 Financial Analysis

Financial Analysis XACC/280 Anthony Issakhan Financial Analysis Comparing a minimum of two years of financial data is needed to make a financial analysis of a company against their competitor. In this paper I will be making a comparison of two companies, Coca Cola Company and PepsiCo Inc.. As this research paper was finalized, the financial analysis contradicted my previous thoughts and showed Coca Cola as the prime investment option. Further information provided in this paper will…

Words 1668 - Pages 7

Financial Summary Essay example

Introduction The Coca-Cola Company was founded in 1892 and is an “American multinational beverage corporation and manufacturer, retailer and marketer of nonalcoholic beverage concentrates and syrups, which is headquartered in Atlanta, Georgia” (Wikipedia). The company is listed as “KO” on the NYSE, DJIA, and S&P 500. The company has many different beverages sold all over the world including soft drinks, bottled water, fruit juices, milk and sports drinks. The Coca-Cola Company has acquired other…

Words 1204 - Pages 5

Financial Reporting Process Essay

Financial Statement Development and Analysis Part A Three (3) of the financial disclosures that would provide evidence as to whether Coca-Cola is achieving its objective are: Coca-Cola’s mission declares the company purpose and standards by which Coca-Cola will operate. Coca-Cola’s roadmap starts with a mission that is lasting. The basic tasks of Coca-Cola are: to refresh the word, to inspire moments of optimism and happiness and to create…

Words 1274 - Pages 6

Coca Cola Qualitative

1. Introduction 1.1 Purpose of research The purpose of the research to identify, evaluate and analyze the financial performance of Coca-Cola Company improved throughout the years 2013 to 2016. 1.2 Research aims and objectives The aim of the research to discover answers to the research questions by collecting information and analyzing the data of Coca-Cola’s financial performance during 2013 to 2016. However, the aim of the research covers a variety of objectives to find out what knowledge has…

Words 1020 - Pages 5

Punishment and Sentencing Reform Essay

Five Year Marketing Plan Coca-Cola Company Table of Contents 1. Company Description Coca Cola is one of the largest beverage producing companies of the world with established markets in more than 200 countries. The company is headquartered in Atlanta, Georgia. The influence of the company can be seen by the fact that it has more than 500 brands in the market which covers sparkling beverages, ready-to-drink coffees, juices and juice drinks. They have an immensely dedicated distribution…

Words 1630 - Pages 7