Coca-Cola Financial Assessment

Coca-Cola – Financial Assessment

The Coca-Cola company was introduced in May of 1886. Originally intended as a patent medicine, this carbonated beverage eventually took over the market of carbonated beverages. Toady, the product is sold in over two hundred countries and is consumed approximately 1.8 billion times per day worldwide. This product, made from the kola nut and the coca bean, originally contained nine milligrams of cocaine per glass from the coca leaf. The formula changed on 1904 to utilize a cocaine-free cola leaf extract, which remained until 1985. In a bold attempt to change the company direction and revitalize the company, the formula was changed and New Coke was introduced. In a lesson quickly learned, Classic Coke was

Showing the company has utilized its assets to their fullest potential over the years. In the beginning the company was solely a soda company, over the last decade, the acquisitions of Glaceau, Fuze, and Honest Tea have allowed Coca-Cola to operate in multiple beverage avenues. (Buehler) In 2007, The acquisition of Fuze, also brought the WaterPlus and NOS energy drink products into their line. In 2008 Coca-Cola added the Honest Tea brand, and in 2009 Coca-Cola acquired the Glaceau company. This acquisition included SmartWater and Vitamin Water. With the push toward a healthier lifestyle in the US, being able to provide these alternate beverages has allowed Coca-Cola to continue to grow. Coca-Cola also turned over their PowerAde product lines over to Glaceau management, allowing the smaller company to focus on the biggest competition of Gatorade in the market. The largest acquisition happened in 2015. Coca-Cola purchased the Monster beverage company for 2.15 billion. The introduction of Stevia has changed the Coke 0 product to Coke 0 Sugar, which brings the carbonated beverage into the healthy product world the US is looking for

With the shift in the market away from heavily sugared carbonated beverages, Coca-Cola has had to adapt their product line to stay competitive and profitable. As shown in the Nasdaq, over the last few years their current assets were trending downward and have turned around to start tending back upward. The shift in the standards of the consumer for a healthier choice is a microeconomic factor that has affected the financial statements and debt and asset ratios. The purchase of the companies that allowed Coca-Cola to expand into other opportunities and markets, and to remain remain profitable, also vastly increased their long term debt Therefore, even though the long term debt was increased by 30%, which would seem indicative of a negative financial aspect, it actually is a positive for the company’s profitability. Even with the smaller portion cans and campaigns to balance what you drink with your exercise levels, I believe that Coca-Cola’s financials would look much different without the acquisition of the additional companies, most notably the Monster beverage company. With the explosion of the energy drink market, Coca-Cola needed that product line to boost its