Question

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.

Answer 1

	2016	2015
Net operating Revenue	41863	44294
gross profit	25398	26812
Gross profit margin	61%	61%
operating income	8626	8728
Operating Income Margin	21%	20%
Income before income tax	8136	9605
Net income attributable to shareowners of The Coca-Cola Company	6527	7351
Net income margin	16%	17%
Earnings per share	1.51	1.69
cash dividends	1.4	1.32
Total Assets	87270	89996
Long-Term Debt	29684	28311
liabilities to asset ratio	0.34	0.315
Current Debt	21988	22789
Current Assets	31213	29495
Current Ratio	1.42	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