Investment Analysis of Coca Cola
In this essay paper on the “Investment Analysis of Coca Cola”, we look at the investment analysis of Coca Cola one of the world’s largest organizations, the Coca-Cola Company, from 2016 through 2019.
The research will examine the numerous ratios used in measuring a business’s financial status, such as liquidity ratios, activity ratios, debt ratios, and profitability ratios, and then use them to evaluate whether Coca-Cola Company is operating effectively.
The Coca-Cola Company was formed in Atlanta, Georgia in 1886. Coca-Cola is one of the world’s largest manufacturers and distributors of non-alcoholic beverages, ranging from coffee to soft drinks. Coca-Cola is one of the world’s most valuable brands, and it also controls some of the top soft drink brands, including Fanta, Sprite, and Diet Coke.
Coca-number Cola’s one opponent is PepsiCo, thus the business devised strategies to boost its competitive advantages by using its massive assets, brands, and unrivaled distribution system. (The Coca-Cola Company’s Financial Analysis, 2018)
The current ratio is used to assess a company’s capacity to pay the short-term debt, or debt that is due within a year. The current ratio emphasizes the company’s ability to pay down current liabilities by converting assets to cash.
Furthermore, a current ratio of 1 indicates that the firm is healthy and capable of covering its responsibilities and overcoming any adverse events. Moreover, the quick ratio also known as an acid test is similar to the current ratio except that the quick ratio focuses more on turning the current assets into cash-like inventory.