A financial analysis for Coca-Cola: company profile, financial statement, liquidity ratio, current ratio, cash ratio, quick ratio, profitability, efficiency, short term activity, long term activity, solvency, DuPont analysis and historical enterprise value (HEV). Done By Elie Obeid and Isabelle Khalil

2. Elie Obeid & Isabelle Khalil

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Name: Coca-Cola Co.
Ticker: KO
Exchange: New York Stock Exchange (NYSE)
Number of shares of common stock outstanding: 4,415,922,733
Industry: Consumer Goods
Country:`United States

4. 12 months ended Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008
Net operating revenues
48,017
46,542
35,119
30,990
31,944
Cost of goods sold
-19,053
-18,216
-12,693
-11,088
-11,374
Gross profit
28,964
28,326
22,426
19,902
20,570
Selling, general and administrative expenses
-17,738
-17,440
-13,158
-11,358
-11,774
Other operating charges
-447
-732
-819
-313
-350
Operating income
10,779
10,154
8,449
8,231
8,446
Interest income
471
483
317
249
333
Interest expense
-397
-417
-733
-355
-438
Equity income (loss), net
819
690
1,025
781
-874
Other income (loss), net
137
529
5,185
40
39
Income before income taxes
11,809
11,439
14,243
8,946
7,506
Income taxes
-2,723
-2,805
-2,384
-2,040
-1,632
Consolidated net income
9,086
8,634
11,859
6,906
5,874
Net income attributable to noncontrolling interests
-67
-62
-50
-82
-67
Net income attributable to shareowners of The
Coca-Cola Company
9,019
8,572
11,809
6,824
5,807
Source: Coca-Cola Co., Annual Reports

6. Coca-Cola Co., liquidity ratios
Current ratio
Quick ratio
Cash ratio
Source: Based on data from Coca-Cola Co. Annual Reports
Stock Analysis on Net (www.stock-analysis-on.net)
Copyright © 2014 EBIT Financial Analyses Center
Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008
1.09
1.05
1.17
1.28
0.94
0.77
0.78
0.85
0.95
0.62
0.59
0.58
0.61
0.67
0.38

11. Coca-Cola Co., profitability ratios
Dec 31, 2012
Dec 31, 2011
Dec 31, 2010
Dec 31, 2009
Dec 31, 2008
Return on Sales
Gross profit margin
Operating profit margin
Net profit margin
60.32%
22.45%
18.78%
60.86%
21.82%
18.42%
63.86%
24.06%
33.63%
64.22%
26.56%
22.02%
64.39%
26.44%
18.18%
27.51%
10.47%
27.10%
10.72%
38.09%
16.19%
27.52%
14.02%
28.37%
14.33%
Return on Investment
Return on equity (ROE)
Return on assets (ROA)
Source: Based on data from Coca-Cola Co. Annual Reports
Stock Analysis on Net (www.stock-analysis-on.net)
Copyright © 2014 EBIT Financial Analyses Center

13. Activity ratios measure how efficiently a
company performs day-to-day tasks, such
us the collection of receivables and
management of inventory.

14. Coca-Cola Co., short-term (operating) activity ratios
Dec 31, 2012
Dec 31, 2011
Dec 31, 2010
Dec 31, 2009
Dec 31, 2008
Turnover Ratios
Inventory turnover
Receivables turnover
Payables turnover
Working capital turnover
14.71
10.09
24.39
19.15
15.05
9.46
21.43
38.34
13.25
7.93
18.61
11.44
13.16
8.25
21.98
8.09
14.61
10.34
23.32
–
25
36
61
15
46
24
39
63
17
46
28
46
74
20
54
28
44
72
17
55
25
35
60
16
44
Average No. of Days
Average inventory processing period
Add: Average receivable collection period
Operating cycle
Less: Average payables payment period
Cash conversion cycle
Source: Based on data from Coca-Cola Co. Annual Reports
Stock Analysis on Net (www.stock-analysis-on.net)
Copyright © 2014 EBIT Financial Analyses Center

16. Average inventory processing period
Add: Average receivable collection period
Operating cycle
Less: Average payables payment period
Cash conversion cycle
Source: Based on data from Coca-Cola Co. Annual Reports
Stock Analysis on Net (www.stock-analysis-on.net)
Copyright © 2014 EBIT Financial Analyses Center
25
36
61
15
46
24
39
63
17
46
28
46
74
20
54
28
44
72
17
55
25
35
60
16
44

18. Coca-Cola Co., debt and solvency ratios
Debt to equity
Debt to capital
Interest coverage
Source: Based on data from Coca-Cola Co. Annual Reports
Stock Analysis on Net (www.stock-analysis-on.net)
Copyright © 2014 EBIT Financial Analyses Center
Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008
0.99
0.90
0.76
0.48
0.45
0.50
0.47
0.43
0.32
0.31
30.75
28.43
20.43
26.20
18.14

20. Coca-Cola Co., two-component disaggregation of ROE
Dec 31, 2012
Dec 31, 2011
Dec 31, 2010
Dec 31, 2009
Dec 31, 2008
ROE
=
27.51%
27.10%
38.09%
27.52%
28.37%
ROA
×
10.47%
10.72%
16.19%
14.02%
14.33%
Source: Based on data from Coca-Cola Co. Annual Reports
Stock Analysis on Net (www.stock-analysis-on.net)
Copyright © 2014 EBIT Financial Analyses Center
Leverage
2.63
2.53
2.35
1.96
1.98

21. The primary reason
for the increase in
Return on Equity
(ROE) over 2012 year
is the increase in
Financial Leverage.

22. Coca-Cola Co., EV calculation
No. shares of common stock outstanding
Share price (USD $)
Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008
4,456,717,996 4,526,408,442 4,588,633,662 4,610,247,876 4,629,316,324
38.45
34.59
31.96
26.36
20.54
USD $ in millions
Common equity (market value)
Add: Equity attributable to noncontrolling interests
(per books)
Total equity
Add: Loans and notes payable (per books)
171,361
156,568
146,653
121,526
95,086
378
171,739
16,297
286
156,854
12,871
314
146,967
8,100
547
122,073
6,749
390
95,476
6,066
Add: Current maturities of long-term debt (per books)
Add: Long-term debt (per books)
Total equity and debt
Less: Cash and cash equivalents
Less: Short-term investments
Less: Marketable securities
Enterprise value (EV)
1,577
14,736
204,349
8,442
5,017
3,092
187,798
2,041
13,656
185,422
12,803
1,088
144
171,387
1,276
14,041
170,384
8,517
2,682
138
159,047
51
5,059
133,932
7,021
2,130
62
124,719
465
2,781
104,788
4,701
–
278
99,809
Stock Analysis on Net (www.stock-analysis-on.net)
Copyright © 2014 EBIT Financial Analyses Center

23. Coca-Cola Co.'s enterprise value
increased from 2010 to 2011 and from
2011 to 2012, therefore it is safe to invest
in this company.