Analyze Financial Statements of The Coca-Cola Company
The Coca-Cola Company (Coca-Cola) is the world's largest beverage company. They own and market four of the world's top five non-alcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Fanta and Sprite. Google "Coca-Cola Investor Relations" and locate the2013 10-K report. Using the 2013 Coca-Cola 10-K, answer the following questions:
1. The 10-K starts with the company discussing their products and brands. Besides the beverage brands listed above, what are several other brands owned by Coca-Cola? Coca- Cola also has invested in other beverage businesses and distributes third party brands. Identify two of these third-party brands.
2. Read the Risk Factors (item 1A). Summarize three risks that Coca-Cola has identified. For each risk, discuss whether it is likely to occur in the next 5 years.
3. Consider Coca-Cola's selected financial data (item 6). Was 2013 a good year or not? What leads you to this conclusion?
4. The revenue and operating income of Coca-Cola is divided into six operating segments. Identify the three operating segments where the company generates the most revenue (see "Net Operating Revenues by Operating Segment" on page 50), and the three operating segments where the company generates the most operating income (see "Operating Income and Operating Margin" on page 54). Are these the same operating segments? Comment on why they might be different.
5. Read pages 54 to 56 of the 2013 10-K. This section includes some information regarding how Coca-Cola's net income was affected by changing foreign currency rates. How have the rates changed, and has this helped or hurt the profits of Coca-Cola?
6. Calculate common-size financial statements and financial ratios we covered in Session 5 for Coca-Cola over the period 2011-2013
7. Consider the company's profitability, asset management, liquidity and financial risk using the financial analysis above. How do the results change over the three years covered? Is Coca- Cola getting financially stronger or weaker? In what areas?
Submit one document responding to these questions. Clearly label each response (e.g. Response to Question #1).