Perform financial analysis of the financial
statement of Coca Cola of years 2018 and 2019 by applying different
financial ratios and interpreting the results. The statements are
available in the Annual report of both years at the following link.
(3 Marks)
https://www.annualreports.com/Company/coca-cola
|
Liquidity Ratio |
2018 |
2019 |
Interpretation |
|
Current ratio |
TCA/TCL |
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Quick ratio |
CA – Inventory / CL |
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Leverage Ratio |
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Debt to total asset ratio |
TL / TA |
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Debt to equity ratio |
TL / T stockholder’s equity |
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Long term debt to total ratio |
LL / T equity |
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Times interest earned ratio |
EBIT / interest rate |
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Activity Ratios |
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Inventory turnover |
Sales / Inventory |
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Fixed Assets turnover |
Sales / FA |
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Total Assets turnover |
Sales / TA |
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Accounts Receivable turnover |
Sales / AR |
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Average Collection Period |
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Profitability Ratios |
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Gross Profit Margin |
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Operating Profit Margin |
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Net Profit Margin |
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Return on total Assets (ROA) |
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Return on Stockholders’ Equity (ROE) |
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Earnings Per Share (EPS) |
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Price-Earnings Ratio |
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Growth Ratios |
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Sales |
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Net Income |
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Earnings Per Share |
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|
Dividends Per Share |
