Coke Analysis Essay

1317 Words Aug 1st, 2015 6 Pages
Concordia University
MBA 501-Foundations
Fall 2014 Term

Company Analysis
Coca-Cola Company

Presented by xxxxx Submitted to xxxxxxx On
10/12/2014
The Coca-Cola Company is a multinational, nonalcoholic beverage company that offers its products through a network of “company-owned or controlled bottling and distribution operators, as well as through independent bottling partners, distributors, wholesalers, and retailers” (Yahoo Finance, Retrieved 2014). The Coca-Cola Company was founded by Asa Griggs Candler in 1886 and is headquartered in Atlanta, Georgia (Yahoo Finance, Retrieved 2014). The following is an analysis of Coca Cola Company. The evaluation will present financial ratios and a common-sized income statement.
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The net income for year 2002 is $3,050 and $4,347 in 2003. The stockholders’ equity for 2002 is $11,800 and $14,090 in 2003. The formula for ratio computation is net income is divided by the stockholders’ equity, equals the return on equity.

Figure 2. Chart showing the return on equity for Coca Cola. From “Coca-Cola Company and Subsidiaries Consolidated Balance Sheets,” by William J. Bruns, Jr., 2004, The Accounting Framework, Financial Statements, and Some Accounting Concepts, p. 10. From “Coca-Cola Company and Subsidiaries Consolidated Statements of Income,” by William J. Bruns, Jr., 2004, The Accounting Framework, Financial Statements, and Some Accounting Concepts, p. 11

The asset turnover for year 2002 is 80% and 77% in 2003, as illustrated in Figure 3. The ratio is high and implies the company is generating more revenue per dollar of assets (Loth, 2014). Coca Cola’s net sales for year 2002 is $19,564 and $21,044 in 2003. The total assets for 2002 is $24,406 and $27,342 in 2003. The computation for this formula is the net sales divided by the total assets equals’ asset turnover.

Figure 3. Chart showing the asset turnover for Coca Cola. From “Coca-Cola Company and Subsidiaries Consolidated Balance Sheets,” by William J. Bruns, Jr., 2004, The Accounting Framework, Financial Statements, and Some Accounting Concepts, p. 10. From “Coca-Cola Company and

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