...CONTENTS OVERVIEW OF COCA-COLA 3 HISTORY 3 MANAGEMENT 3 DISTRIBUTION 5 SIZE OF COMPANY 5 LOCATIONS OF FACILITIES & CORPORATE HEADQUARTERS 6 STRATEGIC GOALS AND OBJECTIVES 6 COCA-COLA’S VISION 7 PRODUCT LINES, CUSTOMERS, AND MARKET SECTORS 8 FINANCIAL ANALYSIS 9 FINANCIAL ANALYSIS INTRODUCTION 9 HORIZONTAL ANALYSIS 10 VERTICAL ANALYSIS 12 LIQUIDITY ANALYSIS 14 EFFICIENCY ANALYSIS 15 SOLVENCY ANALYSIS 17 PROFITABILITY ANALYSIS 19 MARKET ANALYSIS 21 CONCLUSION 23 APPENDIX A 24 COCA-COLA’S SUBSIDIARIES 24 APPENDIX B 26 FINANCIAL DOCUMENTS 26 COCA-COLA CONSOLIDATED BALANCE SHEET 26 COCA-COLA INCOME STATEMENT 27 COCA-COLA STATEMENT OF CASH FLOWS 28 COCA-COLA’S STATEMENT OF SHAREHOLDERS’ EQUITY 29 PEPSI CONSOLIDATED BALANCE SHEET 30 PEPSI CONSOLIDATED INCOME STATEMENT 31 PEPSI STATEMENT OF CASH FLOWS 32 PEPSI CONSOLIDATED STATEMENT OF EQUITY 34 VERTICAL AND HORIZONTAL ANALYSIS 35 REFERENCES 40 OVERVIEW OF COCA-COLA Since its creation in 1886, the Coca-Cola Company has become one of the leading beverage entities throughout the world. In fact, Coca-Cola products are now sold in more than 200 countries. Coca-Cola’s business is centered on its production of beverage concentrates, syrups, and finished products. It is responsible for producing and distributing four of the top five nonalcoholic sparkling beverage brands across the globe. These include Coca-Cola, Diet Coke, Fanta, and Sprite. The Coca-Cola Company’s distribution...
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...investments for my client that align with its investment goals would be The Coca Cola Company. The Coca Cola Company has been around for years and everyone enjoys a Coke or a Coke product. 1. Provide a rationale for the U.S. publicity traded company that you selected, indicating the significant factors driving your decision as a financial manager. The significant factors that drove the decision, as a financial manager to look into The Coca Cola Company for my client is that Coca Cola is going to always be around and everyone enjoys a nice cold Coke or Coke product. The Coca Cola Company sells many products world wide. Investing in The Coca Cola Company will offer my client a very high return equity (ROE). “Coca Cola gives investors a very high return on equity (ROE), meaning that for the money you invest your return is typically higher than the industry average. In the case of Coke, it over 19% higher than other beverage or similar companies return. The company has also increased their stock dividend every year for almost 50 years straight.” (http://www.rsstocktips.com/the-coca-cola-company-ko-nyse.php) This study has should that investing is risky, however, The Coca Cola Company has been a solid company to invest in throughout the years. “For example, the company sells more than 500 brands in more than 200 countries and 23 million retail locations.” (http://investorplace.com/2014/02/ko-stock-coca-cola-pros-cons/#.VADekha4lFI) “These products include sparkling and still beverages...
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...Financial Research Report: The Coca - Cola Company FIN 534 – Assignment #1 07 December 2014 Coca Cola Introduction: Coca Cola Company is an American, multinational company that is infamous for its beverage products. The company is commonly referred to as coca cola. Invented and patented in 1886 and 1887, respectively, by an American pharmacist named John Pemberton. Pemberton sold the company in 1889 to Griggs Candler who incorporated it in 1892. For more than 70 years, coca cola had been the sole beverage of the company. Although international expansion was tested in 1928, expansion of the company in the United States did not start until late 1955 (World of Coca-Cola, 2014). This expansion into other beverage flavors as well as diet and caffeine free choices has allowed the company to become a market leader in the beverage industry. The Company has found success in appealing to the needs and desires of a broad consumer base. Their customers derive from various backgrounds, lifestyles, demographics and age ranges. Currently, the Coca Cola brand expands in the integrated form of more than 500 brands of beverages across more than 200 nations worldwide. As markets changed and competition grew, Coca Cola decided to introduce Diet Coke and later followed with several others to include, but not limited to, Coca-Cola Zero, Coca-Cola Cherry, Sprite, and Schweppes. As of today, it is estimated that the Coca Cola Corporation has more than 3500 beverages spread across a...
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...Financial Analysis Project – Final Paper Jennifer M. Harding Cardinal Stritch University MBA 521 August 28th, 2014 Purpose of Analysis All managers need to understand where value comes from in their firm. The purpose of this analysis is to identify the financial strategy and performance of this particular publicly traded company. The process of understanding the risk and profitability of a company by analyzing reported financial info, especially annual and quarterly reports are vital to identifying the company’s overall financial performance. I wanted to analyze Coca Cola because the company has so much history and is one of the most recognizable brands in the world. I have always enjoyed researching food and beverage companies because of my background in the food service industry. I have always been fascinated by brand power of food and beverages and the corporations that are behind particular brands and products. Company Background and History The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer, and marketer of nonalcoholic beverage concentrates and syrups. Headquartered in Atlanta, Georgia, the company is best known for its flagship product, Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia. The Coca-Cola formula and brand was bought in 1889 by Asa Griggs Candler (December 30, 1851 - March 12, 1929), who incorporated The Coca-Cola Company in 1892 (Wikipedia, 1). The company operates...
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...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. This analysis will provide insight of Coca Cola’s financial performance. Additionally, it will summarize an overall performance based on the ratios and financial statement. Coca Cola’s return on assets for year 2002 is 12% and 16% in 2003, as illustrated in Figure 1. The ratio increases over a year. The ratio is high and is assumed to be making good use of its assets (Loth, 2014). The net income for year 2002 is $3,050 and $4,347 in 2003. The total assets for 2002 is $24,406 and $27,342 in 2003. The ratio computation is the net income divided by the total assets is the return on assets. Figure 1. Chart showing the return on assets for Coca Cola. From “Coca-Cola Company and Subsidiaries Consolidated Balance Sheets,” by William...
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...Financial Analysis I think that when it comes down to it PepsiCo and Coca Cola are companies that been around for a very long time and have established relationships with their brands with consumers all over the world. The purpose of this paper is to help breakdown both companies by explaining both financial positions along with showing their strengths. Listed below in this paper are going to be examples that show vertical, horizontal and ratio analysis. The calculations that have been conducted which are listed below are basically intended as a visual to help show which company may appear more secure. Along with that I will provide some recommendations that may seem to help improve the growth of each company. There are a few tools that are used to help evaluate financial statements and that are quite used often in accounting and those tools are Horizontal Analysis, Vertical Analysis and Ratio Analysis. In the preliminary calculation which will be the Vertical Analysis which is often defined as “common size. When it comes down to it this analysis objective is to basically assess the company’s financial statements by assigning certain percent from the base amount to each item of financial statements; this type of evaluation is often used for inter-and intra-company needs according to (Weygandt, Kimmel, Kieso, 2008). A really good example of vertical analysis that is calculated for PepsiCo generally shows and compares its assets in number and percent figures for 2004 and...
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...Financial Analysis The purpose of my paper is to make financial comparisons between PepsiCo, Inc., and Coca Cola. I will be using Vertical and Horizontal analysis, and as Ration Analysis to form my opinion. PepsiCo, Inc. and Coca Cola have been a part of American life for so long that both companies are both taken for granted even though PepsiCo, Inc and Coca Cola are both internationally know the public does not know much about the history of the two corporate giants. Because I am doing a financial comparison of the two, I wanted to know a little history of each company. Pepsi Cola and Coca Cola are two of the world’s best known cola distributers. They have both become strong in the international marketplace. A little knowledge about the history of each company is in order. Pepsi Cola was founded in the late 1890s’ by a pharmacist named Caleb Bradham from North Carolina. In 1961 the Frito Company founded in 1932 merged with the H.W. Lay Company, founded in 1932, to form Frito-Lay, Inc. 1965 Frito-Lay and Pepsi-Cols merged to become PepsiCo, (Our History, 2009). In 1886 in Atlanta Georgia John Pemberton, a pharmacist trying to make a new flavor for a fountain drink invented Coca-Cola. A few doors down at Jacobs Pharmacy he added Carbonated water and started selling his drink for five cents a glass. Pemberton’s book keeper wrote the script still used today. Pemberton passed away just two years later and in 1888 businessman Asa Griggs Candler bought the rights and turned Coca-Cola...
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...Financial Statements Analysis Dr. Rimona Palas Caroline LAYANI Id: 94746 Michael WEIMBERG Id: 94852 Nathan BENAMOU Id: 94531 Sebastian KANOVICH Id:799048 I. Executive summary After analyzing the income statement, ratios and strategies of the Coca-Cola Company, we can conclude that Coca-Cola had a continuous revenue growth between the years 2009 and 2011. It is the largest soft drink industry company in the world and therefore stands in a privileged position to face potential crisis. The reason for having our results in the income statement, and thus also in our ratios can be explained by the company’s acquisition and consolidation of CCE’s North American business during the last quarter of 2010. Moreover, another important factor for the decline in equity interest was the sale of the company’s investment in Embonor during the first quarter of 2011. Coca-Cola has been using several strategies. As mentioned above, acquisitions have been an important factor of Coca-Cola over the last 50 years. By acquiring new companies, they were able to eliminate competition, increase their growth and become the market leader of the non-alcoholic beverage industry. Following our calculations, over the past three years, Coca-Cola had an increase in its current liabilities as well as in their “cash to sales”. The debt-to-equity ratio shows that it’s smaller than one, meaning that the company is financed through equity. This low debt-to-equity ratio will usually be preferable...
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...hence seek out those investments which meet these criteria. My personal investment strategy is based on the analysis of the company’s fundamentals and the macroeconomic environment in which it operates. As such, I invest in historically steady companies in less volatile industries. This strategy may be considered as fundamental investing. For this reason, I desire to invest in a company that has a proven track record of strong financial performance and operates in an industry that is not overly disruptive. For this project, I will elaborate this investment strategy with reference to the Coca-Cola Company, which is one of the companies I am interested in investing in. Coca-Cola (KO) is a well-known brand in the world, consistently ranked as the most valuable brand in the world by Forbes Magazine. Statement of Strategy and Investor Style In my investment strategy, the most important factors I consider are the company’s earnings performance, dividend payout, value of stock and the company’s market leadership in the industry it operates. Earnings Performance I also analyze the company’s earnings per share (EPS) to measure the profitability per unit of equity. High EPS means the company is profitable and in most cases the stocks are highly valued. It is calculated as below: EPS= Net income of a period/number of outstanding shares According to Yahoo Finance 2016, ("Coca-Cola Co (KO) Earnings per Share", 2016), the company’s EPS in the year ended march 2016 were at $1.66 a share...
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...Coca-Cola Inc. Financial Analysis & Valuation Table of Content Executive Summary and Financial Inputs 2 5 Force Analysis 3 Strategies to Create and Sustain Competitive Advantage 3 Accounting Analysis 5 Ratio Analysis 5 Executive Summary In our analysis of Coca-Cola Inc., we estimate an Enterprise Value of $71.3B and an Equity Value of $60.9B, or a value per common share of $25.16. Given the current share price of $44.28, our recommendation for the stock is a “SELL”. Listed below are our key assumptions for the above valuation as well as the conclusions drawn from the analysis of financial statements that led to these assumptions. Key Estimates and Assumptions: * The estimates for financial inputs for the explicit period 2005 through 2009 are as follows: % | 2005 | 2006 | 2007 | 2008 | 2009 | Sales Growth | 5% | 5% | 5% | 5% | 5% | Cost Of Goods Sold % | 36% | 36% | 36% | 36% | 36% | Selling & Administrative Expenses % | 37% | 37% | 37% | 37% | 37% | NFA/Revenues | 89% | 89% | 89% | 89% | 89% | WCR/Revenues | 0% | 0% | 0% | 0% | 0% | * Percentages applied for the explicit 5-year period are largely in-line with the performance ratios that Coca-Cola experienced during 2003 and 2004. * Over-performance Period: This time period represents a scenario where Coca-Cola will continue to enjoy a competitive advantage, resulting in positive NPV investments through the forecasted horizon. ...
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...Christine Worth MBA515 Financial Statement Analysis Project Outline Compare & Contrast Coca-Cola vs. PepsiCo Financial Analysis Income Statement vs Cash Flow Accounts with greatest difference Evaluation of Fiscal Period Profitability Liquidity Leverage Financial Reporting Practices Methods for Accounting Coca-Cola Pepsi Company Disclosures Compare & Contrast Clarity & Completeness Critical Analysis Decision Investment Equity Investor Coca-Cola Company verses PepsiCo Critical Analysis of Investment The three financial statements required for external reports are the income statement, balance sheet, and statement of cash flows. The statement of cash flow highlights the major activities that impact cash flows, which affect the overall cash balance (Garrison, Noreen & Brewer, 2012). Equity investors utilize these financial statements for a critical analysis of the firm’s financial stability before making an investment. Based on a comparison of the income statements to the statements of cash flows for Coca-Cola and PepsiCo, the following accounts report the greatest differences between net income and cash flow from operations. Coca-Cola Company 2010 2009 2008 * Gain from Sale of Asset $(5,358) $(43) $(130) * Income of Equity Investments (671) (359) 1,128 * Change in Accounts Payable 656 319 (576) * Change in Other Working Capital (161) (510) (41) PepsiCo 2010 2009 2008 * Income...
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...Financial Analysis XACC/280 June 29, 2014 Johnny Hamblin Financial Analysis The purpose for this analysis is to compare PepsiCo to Coca-Cola. This will be done by providing a summary of financial accounting information for each company. The information to compare each company comes from financial statements that were provided via Appendix A and B. Those numbers were then broken down into vertical and horizontal analysis as well as ratios. Once the ratios are calculated, an investor can decipher is the company is worth investing in or the company itself can make necessary adjustments to better its numbers. The information was gathered from financial statements of both companies for the year 2004 and 2005. I will provide a description of each of the companies before comparing their finances. Coca Cola was established in 1886 in Atlanta, Georgia. An Atlanta pharmacist by the name of Dr. John S. Pemberton created it (The World of Coca Cola). Frank M. Robinson, is credited with naming the beverage “Coca-Cola” as well as designing the trademarked, distinct script, still used today (The World of Coca Cola). Coca Cola manufactures carbonated and non-carbonated beverages. There are different brand names of soda, sports drinks and also well selling energy drinks. PepsiCo, Incorporated was established through the merger of Pepsi-Cola and Frito-Lay (PepsiCo). Pepsi-Cola was created in the late 1890s by Caleb Bradham. He was also a pharmacist based out of...
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... | |FINANCIAL ANALYSIS | |Comparison of PepsiCo. And Coca Cola Company | | | |Comparison of both companies and recommendation on possible improvement | | | | |8/21/2011/ | | | This paper contains financial data analysis from documentation provided in Appendix A and B. In this paper, I will try to show PepsiCo, Inc. and The Coca-Cola Company and their financial situation and where that can be improved. They are the two largest beverage companies in the world, so this comparison will be very interesting. I will show how the tow companies are different and how they have some similarities do to same market target. As we know the Coca Cola is older company and leader on the market, however PepsiCo is climbing up there too. From all the different analysis type’s I have chosen the vertical or common-size analysis. The equations that I am using in my financial analysis include: the assets account and its base account which was...
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...Valuing Coca Cola stock Executive Summary The case that has been presented is a valuation of Coca Cola, its current stock price, and whether Coca Cola has the potential to be a good recommendation for clients to add to their portfolios. The analysis herein takes into account historical Coca Cola financial information, and uses the information to ascertain whether or not Coca Cola, at its current stock price of $58.00 a share, is a viable security for investors to add to their portfolios. Methodologies The completed analysis of Coca Cola’s investment potential required the use of a few calculations to gather enough information regarding the selling price of its stock. The first of these calculations used is the Capital Asset Pricing Model (Exhibit 1). This model was used to calculate the required rate of return for an investor in Coca Cola. In this calculation, Beta was set at 1.24, and the risk free rate was set at the 30-year government bond rate of 6.22%. The market risk premium was set at the stated 6.00% rate, resulting in a required rate of return of 13.66%. Once this required rate of return was calculated, the Dividend Discount Model (Exhibit 2) was used to calculate a forecasted 1997 stock price for Coca Cola. Using the required rate of return of 13.66%, a forecasted dividend of $0.62, and the expected constant dividend growth rate of 12% for this calculation, the model has forecasted a 1997 stock price of $37.35. For this analysis, a P/E ratio calculation...
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...Financial Analysis Financial Analysis of PepsiCo and Coca Cola September 19, 2010 Tammy Johnson Axia College of University of Phoenix PepsiCo and Coca Cola are two major companies that manufacture beverages. They compete to be the number on manufacturer and distributor of beverages in the world. These two companies are very identifiable in this market and you know them as PepsiCo and Coca Cola. These two companies have undoubtedly dominated the markets worldwide that they both receive universal recognition for their different products. Although, there are many other manufacturers and distributors of beverages these two are the major competitors. Not only do they produce soda drinks, they also produce flavored water, spring water, and some energy drinks. PepsiCo, best known for Pepsi and Coca Cola best known for Coke have great marketing and due to this they are able to target all income brackets. Their marketing and reasonable prices make it easy for the people to buy their products in all income brackets. I will be examining both company’s income statements and balance sheets to disclose the financial condition of these companies in relation one to another. I will also perform vertical and horizontal analysis from their annual report of financial data. There are a vast amount of manufacturers and distributors in this market, but Pepsi and Coca Cola have managed to stay in the number one spot for a couple of decades. Financial Analysis These...
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