coco cola financial ratio analyiss
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
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**. This indicates that company has been able to collect payments from its customers and possibly has been using effective credit granting facilities. This indicates that their short-term liabilities have increased relative to their current assets.
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,
cash flow,
1997 1998,
profit margin,
inventory turnover,
turnover ratio,
1997 1996 cash,
term debts,
1999 1998 1997,
ratios 1996,
financing activities,
1996 cash flow,
|
Acceptance Essays
