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What Is The Ratio Analysis Of The Coca Cola Company

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Ratio analysis for the Coca-Cola Company
The Coca-Cola Company is the world’s largest beverage company, the following we use profitability ratio, operating ratio, liquidity ratio, valuation ratio and the solvency ratio to analyse the company’s financial status over the last 3 years.

Profitability ratio- The Coca-Cola’s Net Profit Margin (in millions) 2014 2013 2012
Net Profit = $ 7,098 = 15.43% $8,584 = 18.32% $9,019 = 18.78%
Revenue $45,998 $46,854 $48,017
When investors pick up a company to invest, the first thing they will do is always look at a company’s profit. Analysing the net profit margin of Coca-Cola, we can see that there is a decrease over the last 3 years, cocoa-cola seems not perform well on 2014 compare to year 2013 and 2012. Maybe one reason is that Coca-Cola did not make any adjustments on their expenditure and cost, they spent the same amount as before, however, the revenue decreases every year and as a result, its net profit margin will decrease. Anyway, the 15.43% of net profit margin is still quite good.

Operating ratio- The Coca-Cola’s Inventory turnover (in millions) 2014 2013 2012
COGS = $ 17,889 = 5.61 $18,421 = 5.63 $19,053 = 6.00
Average Inventory $3,189 $3,271 $3,178
It is the main

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