Financial Analysis of Coca Cola Company

1. Information Technology Training
Centre- Charni Road
Batch : 8:00 am to 12:00 pm
Lab-2
Project On Financial Modeling Of
The Coca Cola Company
Compiled By :
Lalit Pahuja Vishal
Ahuja
WRO 0359405 WRO
0359406
1

2. Overview
 About Coca Cola Company
 Capital Structure :2010
 Financial Data & Performance
 Revenue Performance :2010
 Key Ratios
 Unit case volume
 Funds Outflow
 Coca Cola System
 Per-capita Consumption :2010
 Competition between Giants
 Mission & Vision
 Conclusion & Bibliography
2

3. 3

4. The Coca Cola Company…
 Six Operating Groups :
• Eurasia & Africa
• Europe
• North America
• South America
• Pacific
• Bottling Investments.
 About 100,000 Employees World-wide
 125 years completed
4

5. Capital Structure:2010
Shareholders Equity $31.31 bn
Short Term Debt & Current $9.38 bn
Portion of Long Term Debt
Debt/Equity Ratio 0.30
5

6. 6

7. Performance By Revenue :2010
(in millions $)
7

8. Average 5 years Key Ratios
Return on Equity 30.9 %
Return on Assets 15.1 %
Return on Invested Capital 25.1 %
Gross Profit Margin 68.4 %
Pre-Tax Profit Margin 29.9 %
Post-Tax Profit Margin 23.5 %
Net Profit Margin
(Total Operations) 23.5 %
Debt/Equity Ratio 0.30
Total Debt/Equity Ratio 0.51
8

9. Unit Case Volume Growth
Sparkling
All Beverages Still Beverages
Beverages
2010 v/s 2009 5years Compound 2010 v/s 2009 2010 v/s 2009
Growth Annual Growth Growth Growth
Eurasia & Africa 12 % 9% 10 % 21 %
Europe 0% 3% 0% 2%
Latin America 5% 7% 4% 9%
North America 2% (1 %) 1% 5%
Pacific 6% 6% 2% 13 %
Worldwide 5% 4% 3% 10 %
2010 Worldwide Unit Case Volume Geographic Mix
Eurasia & Africa Europe Latin America North America Pacific
16 % 16 % 28 % 22 % 18 %
9

10. Funds
Outflow
Bottling Consumer
Investment Promotional Research Marketing Training to
Expenses Campaign “Kirana” Stores Social
Owners Campaign
Brand TV SAVE MY GREEN-
Ambassadors Commercials PARIVARTAN SCHOOL ATHON
Print
advertisement Social Media
Marketing
10

11. The Coca Cola System
• Mfg Concentrates, Beverages & Syrups
• Sells them to Bottling Operations
• Focus on Marketing Activities
Company • Final Sale to Customer
• Producing
• Packaging
• Distributing
Bottlers • Merchandising
• Selling the products to end consumers
• Masters of Distribution Channel
Customers
11

12. 12

13. Comparison between two Giants :2009
13

14. Mission & Vision
Mission Vision
 To refresh the  People
world...  Portfolio
 To inspire  Partners
moments of  Planet
optimism and  Profit
happiness...  Productivity
 To create value
and make a
difference.
14