financial ratio analysis of coco cola company for past five years
Dupont model, a common method of analyzing the financial ratios has been used to measure the performance and financial condition of the company over the past four years and the information is given in the following tableThe return on equity (ROE) has decreased considerably over the four-year period, which indicates that management has failed to bring more wealth to shareholders. ROA, return on assets has decreased by in last four years the four year period, which is probably because the profit margin (PM) has decreased by 34.7% over four year periodFigures indicated below also suggest that percentage of sales over assets has not increased significantly over these years. Return On Assets (ROA) 24.22 26.51 21.12 13.58Return On Invest. (ROI) 42.4 39.25 37.51 27.17Return On Equity (ROE) 56.73 56.48 42.05 25.56Net Income Margin (PM) 18.83 21.88 18.78 12.28Fixed Assets Turnover Ratio (AT) 4.7 5.17 5.08 4.99
· The quick ratio, which is a more stringent test for solvency and is good measure of liquidity of company, has also decreased over the years. · The inventory turnover has increased slightly in year 1998 compared to last year. 66Working Capital -1496 -1410 -2260 -3376Receivables Turnover 10. This is a potential concern of the company as it has to now depending on other financial instruments like long term debts and short term debts and cash from investment and other financing activities for its day to day operations, which could create problems of debt trap for them in future ------------------------------------------------------------------------**Bibliography**www. This is possibly due to increase in current liabilities. But has decreased when compared to years 1996 and 1997.
Common topics in this essay:
Asset Turnover,
RATIOS Dupont,
Turnover Ratio,
Investing Activities,
Equity Assets,
Financial Flexibility,
Profit Margin,
Operating Performance,
Debt Ratios,
Inventory Turnover,
1996 1997,
1998 1999,
1996 1997 1998,
1997 1998 1999,
1997 1998,
cash flow,
turnover ratio,
inventory turnover,
profit margin,
1998 1997 1996,
financing activities,
1999 1998 1997,
term debts,
ratios 1996,
1996 cash flow,
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