Analyze the financial situation of the Coca Cola Company

Résumé du document

The Coca Cola Company is an American multinational company, which is the world's leader of the non-alcoholic beverage market, operating in this industry as manufacturer, retailer and marketer of non-alcoholic concentrates and syrups.
The company enjoys a fantastic notoriety thanks to its flagship product Coca Cola, which has been invented by a pharmacist named John Stith Pemberton in 1886. In 1889, Asa Kandler bought the formula and the brand of this product to found three years later the Coca Cola Company in 1992.

Nowadays the firm is a real empire, which owns or licenses more than 500 brands, in 200 different countries, employs 146,200 persons all around the world, and sells 1.7 billion units each day, marketing a portfolio of more than 3,000 products, composed of sparkling refreshments and still beverages like waters, sports drinks, energy drinks, juices, or even teas and coffees.

The company is based in Atlanta (Georgia), its current CEO is Muhtar Kent. The firm is a component of the Dow Jones Industrial Average, and its stock is referenced on the New York Stock Exchange.

Extraits

[...] The ROA of Pepsi is 0.110 so we can say that Coca Cola is more efficient than its competitor. Asset turnover ratio Formula Net sales / Average total sales Calculation (46542 + 35119 + 30990 + 31944) / (79974 + 72921 + 48671 + 40519) Result 0.597 Asset turnover measures a firm's efficiency at using its assets in generating sales or revenue. Coca Cola has a lower Asset turnover ratio than its competitor Pepsi ( 0.972 ) which is not surprising because the companies have different pricing strategies. [...]

[...] The gross profit margin of Pepsi is so with a higher gross profit margin we can say that Coca Cola is a more efficient than its competitor. Return on asset Formula Net income / Average total assets Calculation (8572 + 11809 + 6824 + 5807) / (79974 + 72921 + 48671 + 40519) Result 0.136 ROA gives an idea as to how efficient management is at using its assets to generate earnings. ROA for public companies can vary substantially and will be highly dependent on the industry. [...]

[...] The Coca Cola Company has a very specific system. Many people do not realize that there's a distinction between the company and its bottling partners. In fact, the company only manufactures the concentrates, the syrups and then sells it to its worldwide partners, who are responsible for producing, packaging, distributing and merchandising the products owned or licensed by the Coca Cola Company. Their objective is to build close business relationships with the customers of the company, it means developing partnerships with grocery stores, restaurants, movie theaters Then these customers sell the Coca Cola products to the consumers. [...]

[...] However, the world is changing fast, some environmental factors might cause some problems to the company, particularly legal factors (regulations), and the company will have to anticipate these changes. The future will be made of many challenges, particularly in the sustainable development area, but once again Coca Cola has all the resources to succeed. [...]

[...] Capital structure and long-term solvency D. Profitability E. Market indicators IV. Conclusion Introduction In this paper we'll analyze the financial situation of the Coca Cola Company. This analyze will allow us to identify the strengths and weaknesses of this firm, determining the areas in which the company is performing well, but also the problem areas. We'll do a quick presentation of the company and its management. We'll study the position of the firm in its market, and the competition in this industry. [...]