Coca Cola Ratio Analysis

Company Introduction:

The Coca-Cola Company is the world’s largest beverage company that was created in 1886 by the pharmacist John Stith Pemberton, in Georgia. Nowadays, the brand is sold in more than 200 countries and the company own more than 500 nonalcoholic beverage brands, mostly sparkling but also still water, juices, tea, coffees and sport drinks such as energy drinks. Four brands present in the top 5 of nonalcoholic beverage are own by CCC such as Coca-Cola, Sprite, Fanta and diet Coke.

Between the 80s and 90s, the company decided to create a new advertising image in the Christmas way with the polar bear. Then the brand image is focus on sport and friendship, to strengthen this positioning, Coca-Cola, the Olympic games and the FIFA

Coca- Cola’s current ratio is increasing year after year. The company is over performing in its industry. Coca-Cola Co. 's current ratio improved from 2011 to 2012 and from 2012 to 2013.

- The Acid test Ratio

An indicator of a company’s short-term liquidity. The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets, and is calculated as follows: The quick ratio measures the dollar amount of liquid assets available for each dollar of current

Thus, a quick ratio of 1.5 means that a company has $1.50 of liquid assets available to cover each $1 of current liabilities. The higher the quick ratio, the better the company 's liquidity position. Coca-Cola’s quick ratio is improving year after year. The company is over performing in its industry

Efficiency Ratios Stock turnover:

A ratio showing how many times a company 's inventory is sold and replaced over a period.

The days in the period can then be divided by the inventory turnover formula to calculate the days it takes to sell the inventory on hand or "inventory turnover days." Coca-Cola’s inventory turnover has been decreasing year over year. The company has been underperforming in its industry

4. Accounts receivable turnover

Accounts receivable turnover is the ratio of net credit sales of a business to its average accounts receivable during a given period, usually a year. It is an activity ratio which estimates the number of times a business collects its average accounts receivable balance during a period. Average Accounts Receivable

Coca- Cola’s accounts receivable turnover has been slightly increasing. The company has been over performing in its industry.

Capital Structure -