Coca-Cola Financial Statement and Financial Ratios Analysis

Coca-Cola's Financial Statements and Financial Ratios Analyzed

A Beginner's Guide to Coca-Cola Financial Analysis - 2021

$5.99
  • Included Easy to download PDF File.
  • Included Easy to use format.
  • Included Summarized Income Statements and Balance Sheets for the last 5 years..
  • Included Popular financial ratios for the last 5 years included... with calculations and formulas!
  • Included Expert tips to help with financial statements analysis.
  • Included Expert tips to help with financial ratios analysis.
  • NOT Included-Identify and discuss financial trends for the company..
  • NOT Included-Expert financial analysis done by Paul Borosky, MBA.
  • NOT Included- Analyst "Letter Grades" for the company's ratios.
  • NOT Included-Free Annual Reports Download for (5 Years)

Coca-Cola Financial Report by Paul Borosky, MBA. - 2020

$9.99
  • Included Easy to download PDF File.
  • Included Easy to use format.
  • Included Summarized Income Statements and Balance Sheets for the last 5 years..
  • Included Popular financial ratios for the last 5 years included... with calculations and formulas!
  • Included Expert tips to help with financial statements analysis.
  • Included Expert tips to help with financial ratios analysis.
  • Included Identify and discuss financial trends for the company.
  • Included Expert financial analysis done by Paul Borosky MBA.
  • Included Analyst "Letter Grades" for the company's ratios.
  • Included Free Annual Reports Download for the company (5 years).

Hey All,

Thanks for visiting my Coca-Cola Financial Report page. On this page, you will be able to find preliminary information about Coke's current financial performance as well as some historical track records and trends. 

For a more detailed examination of Coke's financial performance, I offer two reports, which are "A Beginner's Guide to Coke 2021 Financial Analysis" and "Coke Financial Report by Paul Borosky, MBA."  Both reports are written by myself, Paul Borosky, MBA., Doctoral Candidate, and published author, and include:

  • Summarized income statements for the last 5 years.
  • Summarized balance sheets for the last 5 years.
  • Five years’ worth of over twenty common financial ratios presented with formulas, calculations, and analysis tips for each ratio.
  • Line by line description, explanation, and analysis tip for most financial statement line items and financial ratios.
  • Professional financial analysis tips are provided in each section to help YOU conduct your OWN financial analysis!
  • Each section includes an “in other words” segment.  This is where I use plain English to explain concepts.

 

For a MORE in-depth review of the company's financial statements and ratios, make sure to buy my "Coke Financial Report".  The financial report includes all aspects of my "Beginner's Guide" plus a whole lot more...

  • Professional financial analysis of important income statements, balance sheets, and financial ratio trends.
  • "Letter Grade" is assigned to most financial statement line items and financial ratios to help you better understand their overall trends for the last 5 years.
  • Overall financial analysis summary for the company.

Enjoy the preliminary information and for a more detailed analysis, buy the financial report!

Sincerely,

Paul, MBA.

PDF/Downloadable Version

Coca-Cola Financial Report by Paul Borosky, MBA.
  • Included - Free Bonus Downloads: Annual Statements for the Last Five Years (10k reports)!
  • Included - Expert financial analysis done by Paul Borosky MBA.
  • **See Terms and Conditions.

Coca-Cola 2021 Beginner's Guide

Table of Contents

  • Disclaimer 3
  • Forward 4
  • Income Statement 6
  • Coke’s Summarized Income Statements 6
  • Revenues 7
  • Cost of Goods Sold (COGS) 8
  • Selling, General, and Administrative Expenses (SG&A 8
  • Research and Development (R&D) 9
  • Operating Expenses 10
  • Earnings Before Interest and Taxes (EBIT 10
  • Interest Expense 11
  • Earnings Before Taxes (EBT) 12
  • Taxes 12
  • Net income 12
  • Tax Rate 13
  • Balance Sheet 15
  • Coke’s Summarized Balance Sheets 15
  • Cash 16
  • Short-Term Investments 16
  • Accounts Receivables 17
  • Inventory 18
  • Current Assets 19
  • Property, Plant, and Equipment (PP&E) 20
  • Total Assets 20
  • Accounts Payable 21
  • Accrued Expenses 22
  • Short-Term Debt 23
  • Total Current Liabilities 24
  • Long Term Debt (LT Debt) 25
  • Total Liabilities 26
  • Common Stock and Additional Paid-in Capital 26
  • Treasury 27
  • Retained Earnings 28
  • Total Equity 29
  • Financial Ratios 30
  • Coke’s Liquidity Ratios 31
  • Current Ratio 31
  • Quick Ratio 32
  • Cash Ratio 33
  • Coke’s Asset Ratios 35
  • Total Asset Turnover 36
  • Fixed Asset Turnover 37
  • Days Sales Outstanding 37
  • Inventory Turnover 38
  • Accounts Receivable Turnover 39
  • Accounts Payable Turnover 40
  • Other Asset Ratio Calculations 41
  • Working Capital Turnover 41
  • Average Days in Inventory 41
  • Average Days Payable 41
  • Coke’s Profitability Ratios 43
  • Return on Assets (ROA) 43
  • Return on Equity (ROE) 44
  • Net Profit Margin 45
  • Gross Profit Margin 46
  • Operating Profit Margin 46
  • Coke’s Debt Ratios 48
  • Debt Ratio 48
  • Debt to Equity Ratio 49
  • Times Interest Earned 50

Coca-Cola 2020 Financial Report

Table of Contents

  • Disclaimer 3
  • Forward 4
  • Income Statement 6
  • Coke’s Summarized Income Statements 6
  • Revenues 7
  • Cost of Goods Sold (COGS) 8
  • Selling, General, and Administrative Expenses (SG&A 9
  • Research and Development (R&D) 10
  • Operating Expenses 11
  • Earnings Before Interest and Taxes (EBIT 12
  • Interest Expense 12
  • Earnings Before Taxes (EBT) 13
  • Taxes 14
  • Net income 14
  • Tax Rate 15
  • Balance Sheet 16
  • Coke’s Summarized Balance Sheets 16
  • Cash 17
  • Short-Term Investments 18
  • Accounts Receivables 19
  • Inventory 20
  • Current Assets 21
  • Property, Plant, and Equipment (PP&E) 22
  • Total Assets 23
  • Accounts Payable 24
  • Accrued Expenses 25
  • Short-Term Debt 26
  • Total Current Liabilities 27
  • Long Term Debt (LT Debt) 28
  • Total Liabilities 29
  • Common Stock and Additional Paid-in Capital 30
  • Treasury 31
  • Retained Earnings 31
  • Total Equity 32
  • Financial Ratios 34
  • Coke’s Liquidity Ratios 35
  • Current Ratio 35
  • Quick Ratio 36
  • Cash Ratio 37
  • Coke’s Asset Ratios 39
  • Total Asset Turnover 40
  • Fixed Asset Turnover 41
  • Days Sales Outstanding 42
  • Inventory Turnover 43
  • Accounts Receivable Turnover 44
  • Accounts Payable Turnover 45
  • Other Asset Ratio Calculations 46
  • Working Capital Turnover 46
  • Average Days in Inventory 46
  • Average Days Payable 47
  • Coke’s Profitability Ratios 48
  • Return on Assets (ROA) 48
  • Return on Equity (ROE) 50
  • Net Profit Margin 51
  • Gross Profit Margin 52
  • Operating Profit Margin 53
  • Coke’s Debt Ratios 55
  • Debt Ratio 55
  • Debt to Equity Ratio 56
  • Times Interest Earned 57
  • Summary 59
  • Coke’s Strengths 59
  • Coke’s Weaknesses 59
  • Coke’s Final Grade 59

Sample Financial Report

Sample Financial Report by Paul Borosky, MBA.
Financial Report Sample 2

Coca-Cola's Company Summary

The Coca-Cola Company was started in 1886, as a beverage organization.  The firm’s specialty is non-alcoholic beverages.

Coke does business in Europe, the Middle East, Africa, Latin America, North America, and Asia.  Its headquarters is located at One Coca-Cola Plaza in Atlanta, Ga. They employ about 62,000 people.  Coke competes in the beverage – soft drink industry. As for competitors, Coke competes with Pepsi, Nestle, Dr. Pepper, and Kraft Heinz.

Coca-Cola Financial Report Sources

"Coca-Cola 2020 Financial Statements and Financial Ratios: Defined, Discussed, and Analyzed for 5 Years” was written by, Paul Borosky, MBA., doctoral candidate, and owner of Quality Business Plan.  In this summarized report, the author researched Coca-Cola's (Coke) 10k, Coca-Cola's 2020 10k annual report, Coca-Cola's 2016 10k annual report, Coca-Cola's 2019 10k annual report, and Coca-Cola's 2019 10k annual report as the basis for information gathering.  Once all Coca-Cola's 10k annual statements were collected, the author then inserted Coca-Cola's income statement information and Coca-Cola balance sheet information into a customized financial template. 

Section 1: Coca Cola Income Statement

In this section, I walk through a broad definition of what an income statement is and why it is important.  From this, I then discuss and define income statement line items, such as revenues, gross profits, etc. in detail.  After each line item is defined and discussed, I finally offer a summary analysis of Coca-Cola's important income statement line item trends for the last 5 years, in most cases.

Revenue Growth:  In 2016, Coke had revenues of approximately $41.8 billion.  In the next two years, the organization’s revenues would drop considerably, ending 2018 at $34.3 billion.  Fortunately, in 2019, the organization’s revenues would grow by approximately 8% ending the year at $37.2 billion.  However, the firm would suffer revenue losses again in 2020, ending the year at $33 billion.  The fluctuation in revenue growth indicates that the firm is struggling to maintain its market share.  From this, investors should not expect sustained growth from the organization.  To mitigate this problem, the company may need to expand its product offerings.

Coca-Cola 2021 Summary Income Statement

Column1

2021

2020 2019 2018

2017

Revenues

                   38,655

                   33,014                    37,266                    34,300

                     36,212

COGS

                   15,357

                   13,433                    14,619                    13,067

                     13,721

Gross Profit

                   23,298

                   19,581                    22,647                    21,233

                     22,491

 
SG&A

                   12,144

                     9,731                    12,103                    11,002

                     12,834

Depreciation

                     1,452

                     1,536                      1,365                      1,086

                       1,260

R & D
Other

                        846

                        853                         458                      1,079

                       1,902

Total Operating Expenses

                   14,442

                   12,120                    13,926                    13,167

                     15,996

EBIT

                   14,022

                   11,186                    11,732                      9,175

                       7,743

Other Income
Interest Expense

                     1,597

                     1,437                         946                         950

                          853

EBT

                   12,425

                     9,749                    10,786                      8,225

                       6,890

Taxes

                     2,621

                     1,981                      1,801                      1,749

                       5,607

Net Income

                    9,804

                    7,768                     8,985                     6,476

                     1,283

 

Section 2: Coca Cola Balance Sheet Analyzed

For Coke's balance sheet, I again go through each important line item from the balance sheet.  In reviewing each line item, I will define Coke's balance sheet line item, such as cash, property, plant and equipment, and liabilities for the last 5 years.  Next, I then offer an analysis of Coke's balance sheet line item.

Cash:  Coke ended 2016 with $8.5 billion in cash.  In the next year, the company’s cash position would fall to $6 billion.  However, in 2018, the firm’s cash position would moderately increase to $9 billion.  In 2019, the organization’s cash position would again fall to $6.4 billion, only to slightly rebound in 2020 to $6.7 billion.

The fluctuation in cash indicates that the organization has no set policy for maintaining a consistent cash position.  The lack of a consistent cash position shows that the firm may dedicate little thought to fully optimizing its current asset holdings—a lack of oversight in my most humble of opinions.

Coca-Cola 2021 Summary Balance Sheet

Column1

2021

2020 2019 2018

2017

Cash

                       9,684

                   6,795                    6,480                    9,077

                   6,006

Short Term Investment

                       2,941

                   4,119                    4,695                    7,038

                 14,669

Account Receivable

                       3,512

                   3,144                    3,971                    3,685

                   3,667

Inventory

                       3,414

                   3,266                    3,379                    3,071

                   2,655

Other
Current Assets

                   22,545

               19,240                20,411                24,930

               36,545

Net PPE

                       9,920

                 10,777                  10,838                    9,598

                   8,203

Goodwill

                     19,363

                 17,506                  16,764                  14,109

                   9,401

Other
Total Assets

                   94,354

               87,296                86,381                83,216

               87,896

Accounts Payable

                     14,619

                 11,145                  11,312                    9,533

                   8,748

Accrued Expense
Accrued Taxes

                          686

                      788                       414                       411

                      410

Notes Payable

                       3,307

                   2,183                  10,994                  13,835

                 13,205

LT Debt - Current

                       1,338

                      485                    4,253                    5,003

                   3,298

Other
Total Current Liabilities

                     19,950

                 14,601                  26,973                  28,782

                 27,194

LT Debt

                     38,116

                 40,125                  27,516                  25,376

                 31,182

Other
Total Liabilities

                   69,494

               66,012                44,185                45,100

               49,942

Common Stock

                     19,876

                 19,361                  18,914                  18,280

                 17,624

Treasury

                     51,641

                 52,016                  52,244                  51,719

                 50,677

Retained Earnings

                     69,094

                 66,555                  65,855                  63,234

                 60,430

Other
Total Equity

                   24,860

               21,284                21,098                19,058

               18,977

Total Equity & Liability

                   94,354

               87,296                65,283                64,158

               68,919

 

 

Section 3: Coca-Cola's Financial Ratio Summary

For this section, I have chosen about 10 different financial ratios to review for Coca-Cola for the last 5 years.  In reviewing each of Coke's financial ratios, I first start with defining the financial ratio.  Next, I supply the financial formula for calculating the specific ratio.  Finally, I offer a brief analysis of Coke's important financial ratios.  Important ratios calculated and analyzed for the last five years include:

Coca Cola Current Ratio

Current Ratio.

Coke’s current ratio ended 2016 at 1.28.  In the next year, the organization’s current ratio would slightly increase to 1.34.  From this point, the organization’s current ratio would continually fall over the next two years ending 2019 at .76.  However, the firm would substantially increase its current ratio ending 2020 at 1.32.  The fluctuation in the organization’s current ratio indicates that the company has no set target for its current ratio.  Further, even a narrow range, or scope, is not evident.  A better strategy would be for the organization to identify a target current ratio and take specific actions to ensure it is maintained year-over-year.

Coca Cola Liquidity Ratios 2020

Ratios

2020

2019 2018 2017

2016

Current Ratio

                          1.32

                   0.76

Cash Ratio

                          0.47

                   0.24

Quick Ratio

                          1.09

                   0.63

Net Working Capital

                        1,272

                 2,104

 

Coca Cola Asset Utilization Ratios 2020

Ratios

2020

2019 2018 2017

2016

Total Asset Turnover

                          0.38

                   0.43

Fixed Asset Turnover

                          3.06

                   3.44

Days Sales Outstanding

                        34.76

                 38.89

Inventory Turnover

                        10.11

                 11.03

Accounts Receivable Turnover

                        10.50

                   9.38

Working Capital Turnover

                        25.95

                 17.71

AP Turnover

                          2.96

                   3.29

Average Days Inventory

                          0.03

                   0.03

Average Days Payable

                          0.01

                   0.01

 

Coca Cola Profitability Ratios 2020

Ratios

2020

2019 2018 2017

2016

Return on Assets

8.90%

10.40%

Return on Equity

36.50%

42.59%

Net Profit Margin

23.53%

24.11%

Gross Profit Margin

59.31%

60.77%

Operating Profit Margin

33.88%

31.48%

Basic Earning Power

12.81%

13.58%

ROCE

15.39%

19.75%

Capital Employed

                      72,695

               59,408

ROIC

73.97%

75.51%

 

Coca Cola Long-term Debt 2020

Ratios

2020

2019 2018 2017

2016

Debt Ratio

45.96%

31.85%

Debt/Equity

188.52%

130.42%

Times Interest Earned

                          7.78

                 12.40