Understanding Business Finance in External Environment: A Case Study of Coca Cola Amatil

Running Head: Managerial Finance
Managerial
Finance
[Type the document subtitle]
Laptop04011
[Pick the date]

Managerial Finance 1
Executive Summary
The below mentioned paper elaborates the theories about understanding business finance in
external environment. The paper relates to the business finance activities of the ASX listed
company Coca Cola along with the elaboration of various theories in the environment. The risk
profile, time value of money, sources of finance and payout policies are identified in the paper in
relation to various activities of the company Coca Cola Amatil. The financial analysis of the
company has been conducted to give proof to the theories stated in the environment. Further, it
should be noted that the time value of money is crucial in increasing the profitability of the
company in the business environment. The company has invested in various segments which are
expected to provide growth of the business in international environment. More information about
the business finance activities of the company Coca Cola Amatil are discussed below:

Managerial Finance 2
Contents
Introduction......................................................................................................................................3
Risk Profile......................................................................................................................................3
Overall Financial Performance........................................................................................................5
Income Statement........................................................................................................................5
Balance Sheet...............................................................................................................................6
Cash Flow....................................................................................................................................8
Financial Ratios...........................................................................................................................9
Time Value for Money..................................................................................................................12
Sources of Finance.........................................................................................................................13
Payout Policy.................................................................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

Managerial Finance 3
Introduction
The below mentioned paper discuss information about the ASX listed company Coca Cola
Amatil. The organization is the largest bottlers of non-alcoholic beverages present in the Asia
Pacific region. The company comes under the list of top five major Coca-Cola bottlers present in
the worldwide market. The organization Coca Cola Amatil operates its business in six countries
that are Australia, Indonesia, New Zealand, Samoa, Papua New Guinea and Fiji. The company
was founded in the year 1904 and is currently working in the beverages industry. The main
competitor of Coca Cola Amatil is PepsiCo which is also present in the beverages in industry,
while other competitors of Coca Cola involve Schweppes, Saxby and Heinz etc. The company
Coca Cola Amatil holds 43% of the total share of the beverages industry. Further, the business
objective of Coca Cola is to maximize the level of profits by maintaining long term sustainable
growth activities in the business environment (Coca Cola Amatil, 2019).
Further, the mission statement of the company states that they want to refresh the world and
inspire moments of optimism in the environment. The below mentioned report elaborates details
about the concepts of time value of money, risk of return, sources of finance and payout policy in
the business environment in context to the financial activities of the company Coca Cola Amatil.
More details about the paper are discussed below:
Risk Profile
Being a public company, Coca Cola Amatil faces different types of risks in the environment. The
company faces both systematic and unsystematic risks in the business environment that affects
volatility of its share prices and returns. Initially looking at unsystematic risks, an unsystematic
risk occurs in the industry or organization that affects the activities of respective business only.
So, it should be noted that unsystematic risks fluctuates the position of one single organization in
the target market. This type of risk decreases with the creation of portfolios that diversify the
amount of risks in the business environment (Waemustafa, & Sukri, 2016). Considering the case
in Coca Cola Amatil, it should be noted that in the year 2017, the company Woolworths decided
to set quota for the Coca Cola Amatil’s Mount Franklin Water and favour the company Pepsi in
the target market. This type of activity alarmed the interest of investors in the environment and