In: Accounting
Access Coca-Cola's (KO) online financial statements (10-K Annual Report) via the SEC/Edgar Web site below. Please cut and paste into browser as I am unable to include the link here.
https://www.sec.gov/Archives/edgar/data/21344/000002134417000009/a2016123110-k.htm
Review the company's financial statements, paying close attention to the revenues and any corresponding notes and narratives.
Review the company's notes, analysis, and narratives that you can find relative to its revenues.
From a stockholder's viewpoint, answer the questions below. Keep in mind that as a stockholder, you only have access to public documents and answer these questions:
1. What is your interpretation of the company's revenues?
2. Does this make you comfortable with your investment?
Particulars |
2016 |
2015 |
2014 |
Net revenue |
41863 |
44294 |
45998 |
Decrease in Net Revenue | |||
Gross Profit |
25398 |
26812 |
28109 |
GP Ratio |
60.67% |
60.53% |
54.59% |
Net Profit |
6550 |
7366 |
7124 |
NP Ratio |
15.65% |
16.63% |
15.49% |
Operating Cash flow |
8796 |
10528 |
10615 |
Equity Shareholders Fund |
23602 |
25554 |
30320 |
Return on Equity |
27.75% |
28.83% |
23.50% |
1. Interpretation on Company’s Revenue: If we consider 2013 as a base year than in all the year after 2013 there was an decrease in Net Revenue year on year . further when we analyze Chat of the Company revenue with benchmark and Group Index than also we realize that Company not doing good as the group Index and other Group company do. Further Operating Cash flow of the company show decreased which was also a negative sign for revenue.
2. Looking at the present situation it did not seem attractive company for Investment Purpose due to fall in Net Revenue, Net Profit Ratio and return on capital.