Financial Analysis - Coca-Cola

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[...] ROE & ROA The ROE, in accounting, refers to the return on equity. It is a ratio between the net profit made by a company and a monetary unit invested by shareholders. It is expressed as a percentage. The ROA (Return on Assets) assesses the profitability of assets. It is based not on net profits but on the net margin. Year ROE ROA 2022 39,6% 10,3% 2021 42,5% 10,4% 2020 40,1% Figure 6 - ROE and ROA Evolution of Coca Cola ROE decreased to 39.6% in 2022 from 42.5% in 2021. [...]

[...] However, we'll focus on other indicators to evaluate its financial conditions. Ratios Current Ratio The current ratio is a financial metric indicating a company's capacity to meet short-term liabilities with its present assets. It's determined by dividing current assets by current liabilities. Figure 2 - Current Ratio Evolution of Coca Cola For Coca Cola, a decline from 1.32 in 2020 to 1.15 in 2022 suggests a potential tightening of liquidity or an increase in short-term liabilities relative to short-term assets. [...]

[...] Price to Book The P/B ratio of Coca Cola Company is 9.22. Dividend Yield The forward annual divident yield of Coca Cola is 3.33% whereas the one of Pepsico is 3.09%. Taking into account the 3 previous values and when comparing it to Pepsico, we can say that Coca Cola is fairly valued but has a path towards getting overvalued. Sources The Coca-Cola Company Valuation Measures & Financial Statistics (yahoo.com) ROE (Return on equity) : définition, calcul, interprétation (journaldunet.fr) PepsiCo, Inc. [...]

[...] Indicator 2022 2021 2020 Total Revenue 43,004,000 38,655,000 33,014,000 EBITDA 13,828,000 15,474,000 12,722,000 Total Assets 92,763,000 94,354,000 87,296,000 Current Assets 22,591,000 22,545,000 19,240,000 Receivables 3,487,000 3,512,000 3,144,000 Total Liabilities 66,937,000 69,494,000 66,012,000 Total Debt 39,149,000 42,761,000 42,793,000 Stockholder's Equity 24,105,000 22,999,000 19,299,000 Table 1 - Financial Indicators of Coca Cola Company Analysis Total Revenue Revenue serves as a measure of sales effectiveness compared to forecasts. It also provides insight into a company's position against competitors. Although this figure is often indicative of a company's performance, it's vital to monitor that of rivals. However, high revenue doesn't necessarily guarantee strong financial health. Numerous factors must be considered to assess a company's financial well-being. [...]

[...] Financial Analysis - Coca-Cola Introduction According to Britanica, the Coca-Cola Company is an American company founded in 1982 and focuses on the creation of its soft drink product, Coca Cola. Cola Cola is widely available in more than 200 countries and has around 3 000 in-house products. If we focus on the summary of Coca Cola's financial values, we notice that the profit margin is almost 24% which means that this propotion of the revenue is turned into profit. This is a good margin, indicating that the company is efficiently managing its costs. [...]