Answer To: Please I need you to use a company in the United States. It could be Apple, Facebook, Starbuck,...
Sarabjeet answered on Sep 19 2020
Running head: Financial Analysis
Financial Analysis
Financial Analysis
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Contents
Introduction 3
Company’s background 3
Top Executives and Board of Directors 4
Discussion 4
Financial analysis 4
Strength and weakness of financial trends 6
Market performance 7
Competitors of the company 9
Company’s industry and trends 9
Company’s growth and investment recommendation 10
Company's position in the next three years 11
Recommendation 12
Conclusion 13
References 14
Introduction
This report represents the highlight of a business, listed in the US, examining the entire financial performances of business for the purpose of financial investments. The business chosen for presenting in this report is "The Coca-Cola" which deals generally in the soft drinks as well as beverage brands or products presently trading at the price of $43.49 in New York Stock Exchange.
Company’s background
Coca-Cola industry founded in the year 1886 by John Stith in the Georgia, US, is a leading non-alcoholic beverage producing industries (Bénétrix, Lane & Shambaugh, 2015). The organization has seven major operating systems depends on geographic regions, included North America, Europe moreover the Asia Pacific. Most of businesses revenue come from sales of finished products in North America, while other regions produce and sell syrup moreover beverage concentrate.
The principal values of the company for the business are its customer preference, to make strong relationships with the prospect clients as well as present clients. Company's customers include movie theatres, supermarkets, discounters, restaurants, multiplexes, café amongst others. Its main products or brands are a non-alcoholic beverage that included Diet Coke, Coca-Cola, Sprite, Fanta moreover other drinks (Calomiris & Khan, 2015).
The Coca-Cola industry (NYSE: KO) is a beverage business, offering more than 500 products in almost 200 countries as well as territories. Additionally to businesses Coca-Cola products, our portfolio included some world's very expensive beverage products, for example AdeS soy-based beverage, Del Valle juices, Dasani waters, moreover nectars, Gold Peak teas, Georgia coffee, moreover coffees, innocent smoothies, Honest Tea as well as juices, Minute Maid, Simply juices, vitamin water, Sprite or ZICO coconut water. We are constantly changing our product portfolio, from reducing a sugar in beverages to bring new and innovative products or brands to the market (Christersson, Vimpari & Junnila, 2015). Through our bottling partner, we employ more than the 700,000 people and bring financial opportunities to the local communities around the world.
Top Executives and Board of Directors
Muhtar Kent, Chairman and CEO of the company, has a strong commitment to morals moreover value to make the business sustainable as well as profitable in highly competitive business. James Quincey, President and COO of the organization since 2013 and is responsible for organizing operations internationally ("Coca-Cola Global", 2018). Under his leadership, one of the company's most profitable operations has strategically expanded its global portfolio. Other board members of the business include Ana Botin Herbert Allen, Marc Bolland, Ronald Allen moreover Barry Diller.
Discussion
Financial analysis
Coca-Cola’s sales revenues for the current financial year were approximately $44.29 million, an increase from the $35.13 million in 2010. The business has more than the 500 products in non-alcoholic beverage products or brands. Its sale in 2015 was around 2.055 billion, compared to approximately 2.003 billion in 2014 (Cucchiella, D’Adamo & Gastaldi, 2014).
Figure 1: Sales revenue graph
Image Source: Coca-Cola: Products. 2016)
The businesses equity holdings reflect an average of $25 billion in the financial year 2015 to $31 billion in 2013. In addition, the organization's present assets showed good growth or development between 2015 moreover 2010, valued at $33.4 billion, US$3.299 billion, $31.3 billion, $3,033 million, $25.5 billion and $2.158 billion (Dewachter, Iania, Lyrio & de Sola, 2014). In addition, the organization's gross profit margin from the fiscal year 2013 to 2015 averaged 60%, while the operating margin for the past five years was 20%-22%. Coca-Cola's profitability shows continued growth as well as sustainability as the biggest moreover well-known brand of soft drinks and refreshments.
Profitability ratios
2013
2014
2015
2016
2017
2018
Tax Rate percentage
16.74
24.52
23.06
24.84
23.60
23.31
Net Margin %
33.63
18.42
18.78
18.32
15.43
16.60
Turnover of Asset: Average
0.58
0.61
0.57
0.53
0.51
0.49
Return on the Assets percentage
19.42
11.21
10.86
9.74
7.80
8.07
Average Financial Leverage
2.35
2.53
2.63
2.71
3.04
3.53
Return on the Capital (Equity) percentage
42.32
27.37
28.00
26.03
22.36
26.31
Return on Capital Investment percentage
26.69
14.87
14.27
12.58
9.86
10.63
Interest Coverage ratio
20.43
28.43
30.75
25.79
20.31
12.22
Table 1: Profitability ratios
Source: Created by author
Strength &...