For annual report for coca cola 2016 Complete a financial st

For annual report for coca cola 2016

Complete a financial statement analysis of your focus coca cola company.

Essay - analysis the annual report of coca cola applying the approaches and quantitative tools in the topic functional interpretation made from financial statement data and ( Financial statement analyses) as you deem important, and also please provide an interpretation, perspective, and assessment of your analysis as far as how well the coca cola company is doing.

Solution

1.294

The gross profit margin has stayed constant for 2016 nad 2015 at 61% , however the net operating revenue ( sales minus sales return) has decresed by 5.4%

Operating Income margin has increased by a percentage point it was 20% in 2015 and 21% .

Net income margin is now 16% down from 17%.

The whole profitablity analysis shows that the revenue has been on a decline , the operating costs have also decreased kleading to a greater operating margin.

Reduced net income margin indicated increased financial and tax expenses

This has lead to decreased earning per share ( from 1.69 to 1.51 ) but the company has increased the cash dividends from 1.32 to 1.51

Liabilities to asset ratio has increased from 0.31 to 0.34 validating the conclusion on why net income margin fell even when operating income margin increased

Current Ratio has increased from 1.294 to 1.42 , partially due to increase in current assets and decrease in current liabilities

Overall if we look at the company , it is doing well in managing its financials . Fall in revenue is a cause of concern and should be managed. Company has raised additional debt and the return on how it is invested would be visible in the coming years