What Is Coca-Cola's Current Ratio?

Costco’s gross margin has been well maintained over the five year period. Their gross margin of 10.4% is much lower than Sears’ of 26.6% and Wal-Mart’s of 21.5%. Only BJ’s has a lower gross margin of 9.2%. Costco’s 2001 gross margin suggests ability to remain profitable and very competitive at the same time. The company has been able to provide goods to customers at a very low mark-up and at a lower per unit cost.

The current ratio measures the company’s ability to pay its short term obligations with its short term assets. Between Coca Cola and PepsiCo, PepsiCo has a higher current ratio implying that is more capable of paying its obligations. The debt management policies of Coca-Cola in conjunction with share repurchase program and investment activity resulted in current liabilities exceeding current assets. From the ratio Pepsi Co suddenly had to pay all its short-term

The market value of equity for Coca Cola is $180,978.76 million which calculated by (Shares outstanding * price per share). The shares outstanding of Coca Cola is 4342 million shares by looking up on the Bloomberg. The price per share is the 30-day average price from last 30 days. The market value of debt for Coca Cola is $28,641 which calculated by (current maturities of long-term debt + Long-term debt). So the total debt and equity of Coca Cola is ($180,978.76 + $28,641) = $209,619.76. The weight of debt equals to $28,641/$209,619.76 = 13.7%. The weight of equity equals to $180,978.76/$209,619.76 = 86.3%.

Coca-Cola is the provider of carbonated and non-carbonated beverages that can be found in many homes, businesses, and almost everywhere you go in your daily routine. As follows in this plan, Coca-Cola renovates their concept and strategic focus by adding importance to target segments with new and evolving

Acceptability- through effective marketing, thus ensuring coke brands are part of consumers daily life making it a everyday preferred drink internationally.

Such things as market leadership, joint ventures, managerial expertise, inventive business solutions, and flexible organizational structure have giving Coca Cola a competitive advantage (Coca-Cola FEMSA, 2010). Coca Cola also provide managerial expertise training programs to improve their abilities, The inquiries for both companies on sugar content in the products have increased. Also there are negative doubts about their recipe of sugar content effecting weight control, pop culture, and society. Over the course of the years Coca Cola have adjusted their recipe because they are using crafty marketing and distributing smaller

Coca-Cola is one of the world’s biggest and most well-known beverage brands. During its heydays when the company was led by CEO Goizueta, Coca-Cola’s stock was on a steady rise. As late as the 1990s, Coca-Cola Co. was one of the most respected companies in America, a master of brand-building and management in the dawning global era (Carvens & Piercy, 2009). Over the last couple of years, however, Coca-Cola’s stocks have been falling and profits have been decreasing from quarter to quarter.

An eyeball assessment of the changes in Coke’s financial statements between 1996 and 2010 show that mainly all accounts are up. The total assets are up from 1996 to 2010 with an increase from $16,161 to $72,921. Also current assets increased 3.6% from 1996 to 2010 with total non-current assets increasing 5%. Revenue nearly doubled from 1996 having only $18,546 to increasing in 2010 to $35,119. The total current liabilities increased over the years from $7,406 to $18,508. The total long term liabilities also show an increase from 1996 having $2,599 to $23,410 in 2010. Also the

The Solvency Ratio measures the ability of a company to survive over a long period of time (2010). This is important to investors, lean holders, and long term creditors. There are two ways of figuring out how to perform a solvency ratio test for a company, one is the debt to total assets ratio, another is the times interest earned. I will perform the debt to total assets ratio for both company’s. This is done by dividing the total debt by the total assets.

The current ratio is a widely used measure for evaluating a company’s liquidity and short-term debt-paying ability. The ratio is computed by dividing current assets by current liabilities. A high current ratio indicates that a company has sufficient current assets to pay current liabilities as they become due. The 2016 ratio of 0.79:1 means that for every dollar of current liabilities, General Mills had $0.79 of current assets. The current ratio increased from 0.75:1 in 2015. Compared to the industry average of 1.83:1, General Mills appeared to be less liquid.

1. My “eye-ball” assessment of Coke’s changes over the period from 1996 to 2010 is that they improved their finances in many ways indicating overall growth. Their revenue doubled along with their gross profit while at the same time their retained earnings tripled. They also paid out more dividends. The balance sheet indicates that Coke has added long term assets and some long term debt. They have a capital surplus which did not exist in 1996 and five times the amount of shareholder’s equity indicating they leveraged some of their investments with not just long term debt but shareholder’s equity also.

It has taken much more than simply the brand and product to grow Coca-Cola in the number one leader in the soft drink market. Over the past 100 plus years, Coca-Cola has built a huge network of distribution and manufacturing networks. These collaborations that are superior to all others and all types of relationships are a distinctive competency for Coca-Cola. The way that they organize and plan their contracts has proven to be extremely successful and continues to keep Coca-Cola at the top of the market. They have been able to build relationships with suppliers, buyers, bottlers, manufactures, retailers and consumers that are strengthened by the degree of loyalty from both sides of these relationships. They continue to manage their company

The Coca Cola Company is a multinational company with more than 140,000 employees, the company is in beverage business and its flagship product Coca Cola is considered one of the best soft drink. Coca Cola soft drink is the real revenue generator of the Coca Cola Company. The company was found in 1892 and by 2010 it was reported that the company has the serving of 1.7 billion per day so the company has only grown since its inception. The company is serving its product in more than 200 countries, and the Coca Cola Company owns more than 500 brands, this shows that the graphs of the company is moving upwards and the Coca Cola Company is growing at an immense rate.

Because the current ratio measures a company’s ability to pay back short term loans I would be less uncomfortable with the slight drop in liquidity from Coca-Cola rather than the substantially larger drop from PepsiCo. Both current ratios are quite healthy though when compared to others in the industry.

Current ratio is a measure of liquidity and is believed to be a good indicator of a company's ability to repay its outstanding loans. The company has £1,49 of current assets for each £1 of current liabilities in 2008 and £1,33 of current assets for each £1 of current liabilities in 2009. There is only a slight change between the two years but looking at the books we can say 2008 was more liquid for the company rather 2009.