Scribd
Upload
92 views5 pages

Noman

The Coca Cola Company is the largest beverage company globally, headquartered in Atlanta, Georgia, with operations in over 200 countries and 150,900 employees. The document also discusses ratio analysis, highlighting liquidity ratios such as the current ratio and quick ratio, which indicate improvements in Coca-Cola's ability to cover current liabilities. Despite being the largest in its industry, the quick ratio suggests that Coca-Cola may face risks in meeting its debts without relying on inventory.

Uploaded by

noman.chand04
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
92 views5 pages

Noman

The Coca Cola Company is the largest beverage company globally, headquartered in Atlanta, Georgia, with operations in over 200 countries and 150,900 employees. The document also discusses ratio analysis, highlighting liquidity ratios such as the current ratio and quick ratio, which indicate improvements in Coca-Cola's ability to cover current liabilities. Despite being the largest in its industry, the quick ratio suggests that Coca-Cola may face risks in meeting its debts without relying on inventory.

Uploaded by

noman.chand04
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 5

Coca Cola

International
 The Coca Cola Company is the world’s largest beverage
company.
 It is no.1 brand according to fortune 2009 survey.
 The company operates a franchised distribution
system dating from 1889.
 The Coca Cola Company is headquartering Atlanta,
Georgia.
 With local operations in over 200 countries around the
world.
 Coca Cola has 150,900 employees worldwide.
RATIO ANYLASIS

Definition: Ratio analysis is a form of financial statement


analysis that is used to obtain quick indication of a firm’s
financial performance in several key area.
TYPES OF RATIOS
 Liquidity ratio
 Asset management ratio
 DEBT RATIO
 Profitability ratio
 Market value ratio
Liquidity Ratio
Years
Current Ratio
2011
1.05
2012
1.09

Current Ratio:
curret Asset
Current Ratio=
current liability

Interpretation
In 2011 the firm’s ability to cover its current liabilities with its current assets
was 1.05. in 2012 the ratio goes up to 1.09 as compared to 2011 which means
that the company has the ability to pay its liabilities as the definition says that
higher the ratio greater the ability of the firm to pay its bills. This tells that
Coca-Cola is improving their liquidity and efficiency because their current ratio
is improving.
Quick Ratio
curret Asset−Inventory
Quick Ratio=
current liability

Years 2011 2012


Current Ratio 0.92 0.97

Interpretation
According to the definition of Quick ratio the company should have the ability
to pay its liabilities through its most liquid assets. The table shows that in 2011,
the firm has the ratio 0.92 cents. Then we observe a slight improvement in
2012. So we can figure out from the ratios that Coca-Cola still cannot pay its
debts without its inventory. This leads us to believe that Coca-Cola is a
somewhat risky business even through it is the largest in the nonalcoholic
beverage industry.

You might also like