principles of accounting
Examine the following table of ratios for Coca Cola Co. Consider what story these ratios tell you about the financial health of the company. In a 2- to 3-page paper, comment on the following, specifying which ratios you used to draw your conclusions:
- Trends in profitability
- Trends in debt
- Ability of the company to meet its financial obligations
- How efficiently the company is using its assets
Coca Cola Ratio Analysis |
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2014 |
2015 |
2016 |
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Profitability |
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Return on Equity (%) |
22.36 |
26.31 |
26.85 |
Return on Assets (%) |
7.80 |
8.07 |
7.36 |
Profit Margin (%) |
15.43 |
16.60 |
15.59 |
Leverage |
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Debt-to-Equity (%) |
0.63 |
1,11 |
1.29 |
Efficiency |
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Asset Turnover |
0.51 |
0.49 |
0.47 |
Days Inventory |
65.06 |
62.66 |
61.82 |
|
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Liquidity |
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Current Ratio |
1.02 |
1.24 |
1.28 |
Quick Ratio |
0.81 |
0.89 |
0.98 |
Source for Ratios: http://financials.morningstar.com/ratios/r.html?t=KO
Keys to the Assignment
- Pay attention to how the different ratios relate to each other.
- Cite all sources and provide a reference list using APA format.
- Proofread and edit the paper. The goal is zero errors.
- Submit your paper to TLC by the due date for this module.
- For instruction on writing papers, citing sources, proper referencing, and so forth, use Trident University’s: Student Guide to Writing a High-Quality Academic Paper.