An Analysis and Evaluation of Coca Cola Global



Abstract

This paper aims at discussing the background of The Coca Cola Company, the common accounting policies it uses and a detailed insight of five of its key financial performance indicators. It also highlights the best practices used in this sector and the ratio trends over time.

Abstract2

Introduction4

Discussion4

The Coca Cola Inventory Accounting Policy6

The Coca Cola depreciation procedures6

Financial ratios7

Gross Profit margin7

Net profit margin7

Current ratio8

Receivables collection period8

Payables payment period8

Conclusion8

Appendix11

An Analysis and Evaluation of Coca Cola Global

Introduction

The Coca Cola Company is believed to be the market leader in the beverage sector. They are the world's leading beverage company and their portfolio includes 15 billion dollar brands including Fanta, Sprite, Diet Coke, Powerade, Minute Maid together with other juices and drinks.

Their magnificent outreach is attributed by their state of the art distribution system resulting in coverage of more than 200 companies with an average daily serving of 1.7 Billion.

The company also has a “Green” side as it actively strives for community sustainability and environmental preservation thereby reducing its environmental footprint. Among their primary objectives include socio economic development and economic prosperity.

Discussion

World witnessed the birth of Coca Cola in the later parts of 19th century. A pharmacist named John Pemberton also known as the “doc” invented Coca Cola in 1866 About, (n.d.). Pemberton fought in the civil war and wanted to invent something that would result in a commercial success. He, by profession, was a pharmacist but the drugs he invented did not result in any financial gains. He decided to move to Atlanta and enter the beverage market.

Soda fountains were at rise in his time as a social gathering spot so making this made sense. This resulted in the birth of Coca Cola. Coca Cola's formula was patented and the logo and slogan designed. The earlier years did not reap any success with failure being prolonged by his death in August 1888 About, (n.d.).

The Brand was rescued in 1891 by Griggs Candler who went on to become the sole owner of Coca Cola About, (n.d.). With Candler in charge, latest marketing techniques of that time were implemented to tackle the failing health of Coca Cola. It was also marketed in initial years a medical drug but with spontaneous regulatory changes it was it was not allowed to be sold as a medical drug but only as a beverage.

On March 27, 1944 the beverage was trademarked as Coke with the name being owned by The Coca Cola Company Atlanta, Georgia About, (n.d.).

Coke is a manufacturing concern which deals in the production and sale of Coca Cola and other beverages. It has bottling facilities and filling stations throughout the world but a universal taste and recipe which has remained the same for generations. It has the biggest production and bottling facility in China. Coke is in the production and retail sector with their manufacturing units operating 24/7 and 365 days a year. The state of the art production facilities work on the concept of automation with every process ...