A financial statement analysis aids in understanding the financial health of a company. By utilizing this evaluative method, investors, shareholders, managers and other affiliated parties are able to determine past, present, and projected performance of a company. Various techniques are used within this evaluative method including horizontal and ratio analysis. These techniques will show a comparison between two or more years of financial data as well as the statistical relationship between the financial data. It is the researcher’s intent to perform a financial statement analysis on Coca Cola Enterprises to demonstrate its potential healthy financial trends to future investors.
Invented in 1886 by Dr. John S. Pemberton, Coca Cola has become known for its recognizable brands and distinctive taste. Coca Cola Enterprises falls under the beverage industry and reaches consumers in over 200 countries, having the world’s largest beverage distribution system. In today’s market, the number of daily sold Coca Cola beverages averages 1.9 billion. Its mission is to “refresh the world, inspire moments of optimism and happiness and create value and make a difference” (Coca Cola website). Its vision serves as a framework to guide all aspects of the business to continuously achieve sustainable quality growth. Coca Cola’s recognizable brands and distinctive taste has created one of the world’s largest beverage systems that focus on its mission and vision to continuously sustain quality growth.
Coca Cola Enterprises owns or licenses and markets over 500 beverage names. The company offers a variety of beverages from low to no calorie sparking drinks; fruit juices and fruit drinks; sports and energy drinks; teas and coffees. It’s ...
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...ratio analysis, Coca Cola is slightly above its competitors current and quick ratios, but falls below the cash ratio. Based on the various strengths and risks of the financial analysis, it is the researcher’s to not invest in Coca Cola Enterprises at this time.
It was the researcher’s intent to demonstrate the potential unhealthy financial trends Coca Cola Enterprises has experienced through a financial statement analysis. The financial statement analysis aided in understanding the financial health of this company. By determining the past, present, and projected performance of this company investors, shareholders, managers and other affiliated parties are able to have a better understanding of the risk in investment. The techniques utilized gave a comparison of financial data over a three year span as well as the statistical relationship between that data.
In order to make inferences about a company’s financial condition, its operations, and its attractiveness as an investment we have analyzed financial ratios and compare ratios derived from SVU’s financial statements (see chart 1).
The Ratio Analysis technique was used to conduct the report. Therefore, comparison with industry averages and Coca Cola Amatil supplemented the analysis to complement the results.
The Beverage Industry is a highly competitive one and tends to be dominated by a few major actors. The two biggest worldwide known and most influential companies are Coca-Cola and Pepsi. The limited growth opportunities make this competition very intense, requiring companies to follow the trends and be always aware of the competitors' progress. However, the demand for the products depends a lot on the economic conditions within the society. Those few big players enjoy the benefits of the strong loyal customer base during the growth and stability stage in the economy, whereas in times of economic difficulties customers turn to cheaper substitutes. Thus, although the key feature of the industry is that it is very difficult for a new unknown company to enter the market and compete with well-known long-established businesses, the companies should pay significant attention to the new entrants, especially in times of economic instability. Consumer tastes are also seasonal, meaning that the demand for the carbonated beverages is higher during the hot months of the year. Shifting consumer preferences bring the concern of operating uncertainty, which greatly affects pricing strategies. The large companies pay reliable dividends...
The financial health of a publicly traded company is used by potential investors looking to add value and profit to his or her portfolio. One may obtain this data from many different sources such as those used in this paper. The Securities and Exchange Commission, SEC, was founded to help protect investors by requiring by law publicly traded companies provide credible and relevant financial data for the public to access. There are also many online sites such as YahooFinance.com that anyone with access to the internet can use to research companies. Access to this financial data is the easy part, interpreting it is another matter. There are numerous ways to compile this data such as the common-size analysis (hor...
Over the past thirty days Coca Cola Stock seemed to remain stagnant. While over a long portion of time Coca Cola could be very profitable, as of right now it seems to be a constant range of $40 to $42. The risk with investing in Coca Cola stock is that if one were to be wanting to make money with this stock it would take a very long time. It is more the type of stock someone buys in order to retain their money instead of make money. This is not a bad thing in the long run, but if someone were obtaining their fortune in this way Coca Cola would not be the stock to buy. Something with better fluctuation would suit a person like that. Overall I lost about $1.27, which is not bad at all, considering I bought it at the highest point of the thirty day period. I learned that longevity is not always the best way to go unless someone has a long time to wait it out. Plus this type of stock can remain stagnant for a very long time before skyrocketing or falling off the stock market. Overall, Coca Cola is very risky where it is right now because it is not showing any
Analysis of the Coca-Cola Company The Coca-Cola Company is the world's leading manufacturer, marketer and distributor of soft-drink concentrates and syrups. The Coca-Cola Company is the world's leading manufacturer, marketer and distributor of soft-drink concentrates and syrups. The Company markets many of the world's top soft drink brands, including Coca-Cola, Diet Coke, Sprite and Fanta. Through the world's largest and most pervasive distribution system, consumers in nearly 200 countries enjoy the Company's products at a rate of more than one billion serving a day.
They help to establish the performance and state of a firm’s operations that would otherwise not be reflected by individual item in the financial statements (Ittelson, 2009). The ratios help in identifying different aspects of a firm’s performance including profitability, liquidity, and financial leverage of a firm among others. This article determines the profitability, liquidity and the financial leverage of Coca-Cola Company.
Coca-Cola began in 1886, advertised a drink that relieves exhaustion for 5 cents a bottle; 130 years later Coca-Cola is now a billion dollar corporation that sells 1.9 billion bottles a day. The bright red logo can be recognized on billboards, commercials, magazines, and any type of merchandise imaginable. “The Pause that Refreshes”, “I Want to Buy The World a Coke”, and “Open Happiness” are Coke slogans that are still repeated in the market today. Its unique flavor and stylized bottle have set it apart from competition, making it easily recognizable in all fashions.(Worldofcoca-cola.com, Coca-Cola History, 2016)Coca-Cola is considered a worldwide phenomenon. The name Coca-Cola holds a long history and many changes that got it where it is today.
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.
Coca-Cola was created in1886, in Atlanta, by a pharmacist named Dr. John S. Pemberton, but his partner, Frank M. Robinson, created the iconic name "Coca-Cola" and logo (World of Coca-Cola, n.d.). "During the first year, the sales averaged a modest nine servings per day in Atlanta, but today, daily servings of Coca-Cola beverages are estimated at 1.9 billion globally" (World of Coca-Cola, n.d.). The competitors
Coca - Cola : Claims, Values and Polices Coca-Cola is a well-known and cherished brand name. When people think of this name, memories tend to overflow in their heads. Why do you need to be a member? Because, not only does Coke taste great and refresh your own personal memories, it also fills you with memories of the Coca-Cola like "Always Coca-Cola", the antics of the Coke polar bears, and all of the different ads that have represented Coke over the years. Just about every ad you see, as a consumer, has tons of hidden meanings.
The project is on Asset Management in coca cola, strained from annual reports of the company. The subject matter is partial to Asset Management, its scrutiny and its performance valuation but not to any other areas of accounting, corporate, marketing and financial matters.
Any successful business owner or investor is constantly evaluating the performance of the companies they are involved with, comparing historical figures with its industry competitors, and even with successful businesses from other industries. To complete a thorough examination of any company's effectiveness, however, more needs to be looked at than the easily attainable numbers like sales, profits, and total assets. Luckily, there are many well-tested ratios out there that make the task a bit less daunting. Financial ratio analysis helps identify and quantify a company's strengths and weaknesses, evaluate its financial position, and shows potential risks. As with any other form of analysis, financial ratios aren't definitive and their results shouldn't be viewed as the only possibilities. However, when used in conjuncture with various other business evaluation processes, financial ratios are invaluable. By examining Ford Motor Company's financial ratios, along with a few other company factors, this report will give a clear picture of how the company is doing now and should do in the future.
Coca-Cola is a company with sustainable competitive advantage. The company is innovative and has an extensive business model with boasts of a sustainable distribution network. The company was incorporated in the late 1800s to commence the production of a sweet fizzy beverage that has become the world's most known brand. Presently, the company is still on an upward trajectory as it remains one of the world's most sought-after stocks. The company's competitive advantage has shown resilience and sustainability over the years.
Coke Facts The Coca Cola Company Coca Cola India: Key Facts - Coca Cola Business, website: http://www.cokefacts.com/facts/facts_in_keyfacts.shtml