FINANCIAL ANALYSIS

The Coca-Cola Company Financial Results Analysis

Financial analysis of Coca-Cola

The course of the study will focus on the financial analysis of the Coca-Cola. Coca-Cola (Coke in North America and some European countries) is a soda. The name "Coca-Cola" is a trademark registered in U.S. in 1887. Since the end of the Second World War, the original drink is in the collective imagination, a symbol of Americanism. It takes its name from its first publication: leaf coca and use of kola nuts, the beverage was then promoted by its inventor, pharmacist John Pemberton as a remedy against stomach problems such as stomach aches and diarrhea). It was not yet marketed in the famous bottle whose aesthetic will be filed in 1960.Every day; 1.5 billion bottles are sold worldwide, for a turnover of 29 billion dollars in 2007 (Harford, 2007). The biggest competitor of coca-cola on both local and international level is Pepsi.

The "Coca-Cola was invented by the U.S. pharmacist John Stith Pemberton 's May 8 1886 in Atlanta , initially as a remedy for headaches. The first name that was given to drink was "Pemberton's French Wine Coca". Pemberton was a change to the so-called "coca wine" (or Vin Mariani), a mixture of wine and leaves of coca, which had great success in Europe when it was created by a pharmacist Corsican Angelo Mariani (Barczak, 2003). Alcohol was replaced with an extract of the nuts of cola, a tropical plant thought to be not harmful to health. Combined use of two main ingredients, coca and cola, the drink gained its current name.

Performance of coca-cola in the North American market

Over sales in the North American region for coca-cola has increased with 2 percent rose in the last quarter of the year 2010, whereas the last year increase in the sales were only 1 percent. The volume of the juice sales has increased by 7 percent, led by brands like simply juices. After 2006 it's the first time that coca-cola has witnessed a sales increase in the North American region. The chief executive officer of the company Muhtar Kent has expressed that the company's new strategy has resulted in the overall increase in the sales (Mockler, 2002). The new bottle shape of the beverage in a 2-liter pet has gained access in 4 million new household and consumers have found it convenient to store it. More over the company has also extended its products with the introductions of different brands such as drinking mineral water and different juices brands.

The performance of coca-cola has shown a positive trend in the last year with a positive overall increase in the sales and revenue especially in the North American market. Although the beverage market is quite saturated and same is the case with Coca-Cola, facing with the intense competition from the multinational companies and an increasing consumer preference of using healthier drinks instead of using beverages. The company is facing global challenges as the production cost has increase with the rise in the price of the aluminum ...