The Coca-Cola Company ( KO ) is a drink company that maker and distribute coke, diet coke and other soft drinks worldwide. The company chiefly offers nonalcoholic drinks, including scintillating drinks and still drinks. Its sparkling drinks include nonalcoholic ready-to-drink drinks with carbonation, such as carbonated energy drinks, and carbonated Waterss and flavored Waterss. The company’s still beverages comprise nonalcoholic drinks without carbonation, including uncarbonated Waterss, flavored and enhanced Waterss, noncarbonated energy drinks, juices and juice drinks, ready-to-drink teas and javas, and athleticss drinks. It besides provides flavoring ingredients, sweetenings, drink ingredients, and fountain sirups, every bit good as pulverizations for purified H2O merchandises. In add-on, the company licenses its engineerings to providers and 3rd parties. The company is presently using 130,600 full clip employees and is considered being the universe leader in the drink industry. Financial Review of the company:
A. Market value of equity & A ; Book value of equity – Market value of the equity of the company is the current market capitalisation rate and it measured through by multiplying current market value of the portion into the entire figure of portions outstanding and he market capitalisation of the company as on 2nd October, 2014 is $ 187.10 billion ( beginning: finance.yahoo=KO=key statistics ) . While the book value of the equity is the current book value of the company portion and it is determined as under: Book value of equity = Total value of the equity / portions outstanding Book value = $ 7.77 ( beginning: finance.yahoo=KO=key statistics ) . It is of import to observe that the book value of the portions of the company has increased from $ 3.29 per portion in 2004 to $ 7.77 per portion uptill now ( it was $ 7.54 per portion in the twelvemonth 2013 ) B. Market public presentation – Total Return
C. Financial public presentation reappraisal – The fiscal public presentation reappraisal of the company is as under: Gross net income border – The gross net income border of the company was 65.2 % as at twelvemonth 2004 but it has decreased to 60.7 % in the twelvemonth 2013 bespeaking a diminution of 5.5 % over this review period. The lessening in the gross net income is due to the addition in the cost of goods sold ratio as of gross from 34.78 % in the twelvemonth 2004 to 39.32 % in the twelvemonth 2013. Operating net income border – The same tendency of the lessening in the profitableness is noted in the operating net income border of the company as it has decreased from 25.9 % in the twelvemonth 2004 to 21.8 % in the twelvemonth 2013. This lessening in profitableness is an dismaying mark for the company as despite the addition in the gross, the company was non able to bring forth profitableness in the same proportion as that of the addition in the gross of the company.
Payout ratio – The dividend payout has increased from 50 % in the twelvemonth 2004 to 58.8 % in the twelvemonth 2013 indicating higher proportion of income is being paid out to the stockholders of the company Asset turnover – The comparative addition in the assets of the company has resulted in lessening of plus turnover as it has decreased from 0.75 times in the twelvemonth 2004 to 0.53 times in the twelvemonth 2013 bespeaking the hapless direction of assets with regard to gross coevals Return on assets – ROA has besides decreased from 16.52 % in the twelvemonth 2004 to 9.74 % in the twelvemonth 2013 due to the lessening in the profitableness and addition in the plus base of the company Return on equity ( ROE ) – ROE of the company has besides decreased from 32.29 % in the twelvemonth 2004 to 26.03 % in the twelvemonth 2013 due to the lessening in the profitableness of the company Interest coverage ratio – The company foremost involvement coverage ratio was determined in the twelvemonth 2008 and it was 17.98 times.
It has increased to 25.79 times in the twelvemonth 2013 bespeaking an betterment in the overall involvement coverage of the company. Liquid of the company – The liquidness of the company as being measured through current and speedy ratios is bespeaking a positive tendency as current ratio was 1.10 in the twelvemonth 2004 and it has increased to 1.13 in the twelvemonth 2013. On the other manus, speedy ratio has increased from 0.81 in the twelvemonth 2004 to 0.90 in the twelvemonth 2013. Efficiency of the company – Days Gross saless Outstanding of the company has increased from 35.42 yearss in the twelvemonth 2004 to 37.52 yearss in the twelvemonth 2013. Besides, the Days Inventory has besides increased from 63.84 yearss in the twelvemonth 2004 to 64.8 yearss in the twelvemonth 2013. Payables Period has decreased enormously as it has decreased from 199.3 yearss in the twelvemonth 2004 to 38.66 yearss in the twelvemonth 2013. Cash Conversion Cycle of the company has improved as it has increased from -100.04 yearss in the twelvemonth 2004 to 63.66 yearss in the twelvemonth 2013. D.
finance.yahoo. ( 2nd October ) . Cardinal Statistics. Retrieved October 2, 2014, from hypertext transfer protocol: //finance.yahoo.com/q/ks? s=KO+Key+Statistics Morning Star. ( 2nd October ) . Coca-Cola Co KO ( Key Ratios & A ; company public presentation ) . Retrieved October 2, 2014, from hypertext transfer protocol: //financials.morningstar.com/ratios/r.html? t=KO®ion=usa & A ; culture=en-US