Professional Documents
Culture Documents
Cola
Cola
nalysis
I
N
• Coca-Cola is the world largest soft- D
drink company in the world U
S
• The firm makes or licenses more than T
3,000 drinks under 500 brand names R
in some 200 nations Y
O
V
E
R
V
I
E
W
I
N
Othe
D
U
r
S
9%
Pepsi T
Dr R
.Pe
pp 31% Y
er
15
%
O
V
E
R
V
Coke I
44% E
W
Current CEO
Muhtar Kent
CEO &
• Mr Kent Joined the company in 1978
Effective
2008. The Coca-Cola Company and
subsidiaries maintained, in all material
O
respects, effective internal control over
financial reporting as of December 31, R
2009, based on the COSO criteria. “ (10-k)
Report
Operations
• Net operating revenue decreased
• Selling, general and administrative expenses decreased
• Equity Income increased
• A decrease in expenses and in increase in equity income mostly
accounted for an increase in Net Income attributable to the
stockholders
Gross Margin Percentage
=
Operations
(Revenue – Cost of Goods Sold)/Revenue
2009 – 64.2%
2008 – 64.4%
2007 – 63.9%
Industry – 59%
Operations
Coke uses Average Cost and FIFO Method
Inventory is valued at lower cost or market value
Operations
Receivables Turnover Ratio
=
Net Credit Sales/Average Net Receivables
• Coke believes they are not exposed to credit risk because they are
geographically diverse. They aren’t afraid of not collecting bad
debt because their operations are spread out globally and not
specific to one area.
Corporation’s Investing
Performance
(in millions)
Solvency Ratio: