FINANCIAL STATEMENT ANALYSIS COCA COLA COMPANY Introduction The financial statement of Coca Cola Company is being made on the basis of generally accepted accounting principles as followed in the United States. Assets, Liabilities & equities are measures as per the standards mentioned by the US GAAP. Company has used fair value measurement for certain assets and liabilities which as per the GAAP are required to be recorded in fair value on a recurring basis .Further some of the assets and liabilities are also recorded on fair value which comes under the category of non-recurring fair value measurement usually due to the impairment charges. Recording of Asset, Liabilities & Equity. Assets such as property plant & equipment are recorded at cost …show more content…
Income from Continuing Operations Total Other Income/Expenses Net 1,110,000 608,000 83% Earnings Before Interest And Taxes 11,940,000 12,206,000 -2% Interest Expense 463,000 397,000 17% Income Before Tax 11,477,000 11,809,000 -3% Income Tax Expense 2,851,000 2,723,000 5% Minority Interest -42000 -67000 -37% Net Income From Continuing Ops 9,186,000 9,838,000 -7% Non-recurring Events 0 0 0% Discontinued Operations 0 0 0% Extraordinary Items 0 0 0% Effect Of Accounting Changes 0 0 0% Other Items 0 0 0% Net Income 8,584,000 9,019,000 -5% Preferred Stock And Other Adjustments 0 0 0% Net Income Applicable To Common Shares 8,584,000 9,019,000 -5% Horizontal Analysis for Balance sheet Period Ending Dec 31, 2013 Dec 31, 2012 Horizontal Analysis Assets Current Assets Cash And Cash Equivalents 10,414,000 8,442,000 23% Short Term Investments 9,854,000 8,109,000 22% Net Receivables 4,873,000 4,759,000 2% Inventory 3,277,000 3,264,000 0% Other Current Assets 2,886,000 5,754,000 -50% Total Current Assets 31,304,000 30,328,000 3% Long Term Investments 11,512,000 10,448,000 10% Property Plant and Equipment 14,967,000 14,476,000 3% Goodwill 12,312,000 12,255,000 0% Intangible Assets 15,299,000 15,082,000 …show more content…
While reviewing the current assets as a percentage of total assets other than cash & shorter investments all of the other are almost same in the year 2013 as compared to 2014.Cash & investments are higher due to the reason they have increased significantly in the current year as mentioned above .Long term debt have increased to 21% of total assets from 17% in the year 2012 the reason for this change is the 30% increase in long-term debt as compared to the previous year. Equity components have slightly changed in the current year as a percentage of total assets as compared from 2012 due to the reasons that their figures have not changed significantly in the current
: Common size percentage change is often interdependent. Even though the dollar amount for cash & cash equivalents increased in 2012 by 3.5% compared to 2011, the amount of total assets has been also increased by 11.7% compared to 2011 that is much more bigger percentage increase than the increase of cash & cash equivalents. So, the relative amount of cash & cash equivalents to total assets in 2011 (15.6%) was bigger than the relative percentage of those assets in 2012 (14.5%). From the chart, we can see that in 2011, the percentage of Long-term investments available-for-sale securities
This company has a large amount of assets, they total out at about 124,213. They have more assets than actually cash on hand. This company has no short-term debt, the only debt they have is short-term. There is a section called other assets this, has increased by a lot. The fixed assets have increased by a lot in this company.
During the last eight quarter, debt to assets ratio increased from 62% to 68% and the reason for that is because the total assets have decreased from $12.3 billion to $9.7 billion. Total liabilities have decreased as well from $7.6 billion to $6.6 billion. Even though both assets and liabilities decreased, assets decreased by much high percentage than liabilities did. For the last six quarters, the times interest earned ratio was negative which means that the EBIT was negative. Along with that, the EBIT is decline more and more every quarter. During the third quarter in 2011, EBIT was -$171 million and during the fourth quarter in 2012, it was -$745 million. Overall, both liquid and leverage ratios indicate the financial health of the company is declining. Company is losing assets (mostly cash) and they are not as liquid as they used to be. The assumption is that the company will be out of cash by the end of 2013.
A brand is a name, term, sign, symbol, or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. Products and services have become so alike that they fail to distinguish themselves by their quality, efficacy, reliability assurance and care.
The increasing trend in the quick ratio from 4.7 to 7.7 during 2013 – 2014 shows that its quick assets are more as compared to its current liabilities. This shows that the firm is easily paying off its current liabilities. Similarly, the increasing trend in the current ratio reflects that the firm is easily paying off its current debts by using profits generated from its current operations. Likewise, the increasing trend in the asset turnover ratio means that the firm is using its assets productively.
The purpose of this paper is to provide data and analysis of PepsiCo, Inc. and The Coca-Cola Companies financial statements so that a potential investor can make an educated decision about where to place their money. The paper shows a vertical analysis of each company’s consolidated balance sheet, a horizontal analysis of their consolidated statement of income ratios showing solvency, liquidity and profitability.
Coca –Cola (KO) is one of the world’s largest beverage companies. Company was incorporated in September 1919 under the State of Delaware law and headquarters is located in Atlanta Georgia. But from 1886, company established its brand in US (Coca-Cola, 2012, p. 1). Currently company is providing for more than 500 varieties of non-alcoholic sparkles to the customers around the world. Apart from this, company also serve for still beverages that includes enhanced water, water, ready-to-drink, juices, energy drink, sport drinks and so on.
The Coca-Cola company was founded in 1886 by John Pemberton, a Civil War veteran and Atlanta pharmacist. He was inspired by his curiosity as he stirred up a fragrant, caramel-colored liquid that he brought down to a place called Jacobs’ Pharmacy. There he added carbonated water and let several customers sample the new concoction. Jacobs’ Pharmacy put it on sale for five cents a glass and named it Coca-Cola. This “inspired curiosity” has now grown to be the world’s leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups. In 1906 Coca-Cola opened bottling plants in Canada, Cuba, and Panama. Today they produce nearly 400 brands in over 200 countries. More than 70% of their income comes from outside the U.S. (1). This paper will focus on an analysis of operations of the statement of cash flow reports and a vertical and horizontal analysis of the consolidated balance sheets. Also an analysis of the global financial condition of the Coca-Cola Company and the value of goodwill and other intangible assets will be discussed.
We can define competitive advantage as simply what a given company excels best at. This could be the distinguishing factor as to why consumers purchase from your company and not the competition. This could also be understood from the perspective of quality that a business can create for the consumer.
Numerous definitions of strategy exist, in most circumstances strategy can loosely be explained as an overall plan of deployment of resources to ascertain a favourable position within a market (Zablah, Bellenger and Johnston 2004; Grant 1994, p 14). Further, imbedded in many successful organisations are strategies, the importance of which is to remain relevant in the market, and successful in the various attributes of business; profiteering, employee motivation, maintaining sustainable core competencies, effectiveness in operation, or efficiency in the conduction of operations. Therefore challenges involved in the formulation and implementation of a strategy can revolve around the overall external market, as well as internal
"Over a century of sweet tasting beverages with family and friends." The positioning statement of Coca-Cola needs to project the image in the minds of their existing consumers, as well as potential new consumers, the history of Coca-Cola being a competing global brand in the beverage industry and the association of the brand with fun themes such as social events, parties, family activities, etc. According to Kotler and Keller (2016), positioning "is the act of designing a company 's offering and image to occupy a distinctive place in the minds of the target market." There are factors that must be taken into account to produce an effective positioning statement that will attract the attention of the targeted market segment:
By defining “real stakeholders” as those who have a legitimate claim and firm has responsibility towards them and the influence and power are reciprocal (Fassin 2009), the following groups are real stakeholders for whom Coca-Cola HBC is responsible in terms of both management and ethical issues.
The purpose of this report is to compare financial reports from the two largest soft drink manufacturers in the world. The Pepsi Co. and Coca Cola have been the industry's leaders in their market since the early 1900's. I will use relevant figures to determine profitability, and break down key ratios in profitability, liquidity, and solvency. By breaking down financial statements, and converting them to percentages and ratios, comparisons can be made between competitors regardless of size.
A diversified company has two levels of strategy: business unit (or competitive) strategy and corporate (or companywide) strategy. Competitive strategy concerns how to create competitive advantage in each of the businesses in which a company competes. Corporate strategy concerns two different questions: what businesses the corporation should be in and how the corporate office should manage the array of business units.