Financial Analysis of Coca-Cola Company
Financial Analysis of Coca-Cola Company Introduction
The Coca-Cola Company is the largest distributor, manufacturer, and marketer for the non-alcoholic syrups and beverage concentrates in the world and builds its own trademark in the world (Coca-Cola Corporate Site, 2008). In measuring for the financial statement of the company which is Coca-Cola, it can be suitable to use the significant relationships and the identification of changes as well as the trends. The widely used technique that are primarily and widely used are the dollar and the percentages changes, ratios which can also be express to the relationships to the financial statement of the other company, the trend percentage, and the components percentage. These are also been accompanied by the comparison of the past performance of the company and the standard of industry (Williams, et. al, 2008, p.632). Ratios
The ratios are commonly important for analyzing the financial statement due to the reason that it has the permission for the comparison of information in the financial statement to the other financial statement information. For this case, the ratios of the Coca Cola Company can be compared to the benchmark of its ultimate competitor, the Pepsi Co. Inc.
For the ratio of the current asset and the current liabilities of Coca-cola, it had been estimated that it has the ratio of 0.91 or 91 percent higher the total current liabilities than the current asset for the year 2007 vs. 2006. On the other hand, for the year, 2005 vs. 2006 it has the ratio of 0.94 or 94 percent higher the liabilities as compared to the current asset. The coca-cola company also has the earnings per share of 19 percent as compare to the $2.16 for the yea 2006 and to the $2.57 for the year 2007. This had been caused by the increased of the worldwide sales and the rise for its earnings in the year 2007 for the company. On the analysis of the price to earnings ratio, the company has the actual (2007) PE Ratio of 19.72 and for
The Coca-Cola Company is the largest distributor, manufacturer, and marketer for the non-alcoholic syrups and beverage concentrates in the world and builds its own trademark in the world (Coca-Cola Corporate Site, 2008). In measuring for the financial statement of the company which is Coca-Cola, it can be suitable to use the significant relationships and the identification of changes as well as the trends. The widely used technique that are primarily and widely used are the dollar and the percentages changes, ratios which can also be express to the relationships to the financial statement of the other company, the trend percentage, and the components percentage. These are also been accompanied by the comparison of the past performance of the company and the standard of industry (Williams, et. al, 2008, p.632). Ratios
The ratios are commonly important for analyzing the financial statement due to the reason that it has the permission for the comparison of information in the financial statement to the other financial statement information. For this case, the ratios of the Coca Cola Company can be compared to the benchmark of its ultimate competitor, the Pepsi Co. Inc.
For the ratio of the current asset and the current liabilities of Coca-cola, it had been estimated that it has the ratio of 0.91 or 91 percent higher the total current liabilities than the current asset for the year 2007 vs. 2006. On the other hand, for the year, 2005 vs. 2006 it has the ratio of 0.94 or 94 percent higher the liabilities as compared to the current asset. The coca-cola company also has the earnings per share of 19 percent as compare to the $2.16 for the yea 2006 and to the $2.57 for the year 2007. This had been caused by the increased of the worldwide sales and the rise for its earnings in the year 2007 for the company. On the analysis of the price to earnings ratio, the company has the actual (2007) PE Ratio of 19.72 and for