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Financial Statement Analysis - Coca-Cola

   

Added on  2020-09-09

17 Pages2508 Words132 Views

Table Of Contents Introduction ................................................................................................... 2 Financial Statement ............................................................................ 2 Ratio .............................................................................................. 2 Financial Statement Analysis ................................................................. 3 Financial Statement .......................................................................................... 4 Income Statement of Coca-Cola ............................................................... 4 Income Statement of Jones Soda Co......................................................... 5 Analysis ................................................................................. 5 The Statement Of Financial Position of Coca-cola ........................................ 6 The Statement Of Financial Position of Jones Soda Co.................................... 8 Analysis ................................................................................. 9 The Statement Of Cash Flow of Coca-Cola ................................................ 10 The Statement Of Cash Flow of Jones Soda Co............................................ 11 Analysis ............................................................................... 12 Ratio .......................................................................................................... 13 Liquidity Ratio ................................................................................. 13 Analysis .............................................................................. 13 Leverage Ratio ................................................................................. 13 Analysis .............................................................................. 13 Efficiency Ratio ................................................................................. 14 Analysis .............................................................................. 14 Profitability Ratio ............................................................................... 14 Analysis .............................................................................. 14 Market Value or share price Ratio ........................................................... 14 Analysis .............................................................................. 15 Reference .................................................................................................... 16 1

Introduction Financial Statement​​is reports prepared by firms, accountants, etc, to record and present the financial activities and also the final performance of the company. ​Financial statements include the ​balance sheet​, income statement, cash flow statement and statement of changes in equity. These are further explanations for the 4 types of financial statements: 1.The balance sheet is a summary of the company’s state at a certain point in time. This is usually used to analyze financial activities. 2.Income Statement shows the expenses and revenue of the company in a short/certain period of time. 3.Cash flow statement shows the cash and bank balances’ activity over a period which is classified into 3 segments which are operating, investing and financing. 4.Statement of changes in equity, also known as the statement of retained earnings, shows the movement in owners' equity over a period of time. Ratio​is a tool used by financial statements that measure ​the efficiency and profitability of a company by analysing the financial report. There are 5 types of ratio including their explanation: 1.Liquidity Ratio measures the firm’s ability to pay off debts by ​calculation of metrics such as ​current ratio​, quick ratio, and ​operating cash flow ratio​. 2.Leverage Ratio is one of several financial measurements that measures the amount of capital in loans or determine the ability of a company to meet its financial goals. 3.Efficiency Ratio used to analyze the efficiency of the use of assets and liabilities in a company internally. This ratio calculates the quantity and usage of equity, turnover of receivables, the repayment of liabilities and the general use of inventory and machinery. 4.Profitability Ratio is a group of financial metrics used to estimate the business's ability to produce earnings relative to its operating costs, revenue, balance sheet assets, and shareholders' equity over time, using data from in a certain period of time. 5.Market value or share price Ratio is used to evaluate the current share price of a company’s stock.​This ratio is investors to determine whether the company's shares are over or under-priced. 2

Financial Statement Analysis​is converting ​raw financial information from the financial statements and converts it into usable information the can be used to make decisions.​The 3 types of analysis are horizontal analysis, vertical analysis and ratio. Here is the explanation for the 3 types of analysis: 1.Horizontal Analysis: ​the comparison of business performance over time which can be used to predict the company’s future performance. 2.Vertical Analysis: ​matches the company’s performance to a base number like benchmarking. 3.Ratio Analysis: used to compare to different companies. This analysis shows the worth of assets. 3

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