Coca Cola Financial Analysis

1394 words - 6 pages

Assignment #1: Coca-Cola Company
Financial Results Analysis: Q3 2012

ACC499/Accounting Capstone
10/21/12
Coca-Cola Company is a beverage company headquartered in the United States with significant international operations. Operating in over 200 countries worldwide with a product offering of over 500 different products, Coca-Cola Company has come a long way from a small beginning in 1886 (Coca-Cola, History, 2012). Long considered a strong corporate entity by investors and analysts, Coca-Cola recently released 2012 Q3 financial results and business targets on October 16, 2012 as discussed below.
North American Market Volume Results
North America is part ...view middle of the document...

Drivers of Profitability
Drivers of profitability for Coca-Cola Company include the ability to stimulate somewhat saturated markets such as North America while continuing to focus on increasing market share in emerging markets. North America has long been considered the flagship for Coca-Cola but as mentioned previously, recent concerns over obesity rates particularly in children and young adults in the United States has forced the spot light on sugary drinks as a contributing factor (Coca-Cola, Earnings, 2012). Coca-Cola has responded by changing packaging for some drinks, offering them in mini-can size for those concerned with portion control and continuing development of lower calorie alternatives such as natural, zero calorie sweeteners for Sprite and Fanta drinks. Coke Zero continues to hold stable as a leading diet soft drink in the market today (Choi, 2012).
As Coca-Cola plans for the future, it will have to continue to work with the identified drivers of profitability listed above as well as additional drivers. Despite the favorable market gains overall in 2012, unfavorable currency exchange rates between Europe and the U.S. deflated some of the percentage gains in the various markets resulting in a 5% profits decrease (Zacks, 2012). Coca-Cola Company enjoys world-wide brand recognition which will assist in gaining market share in those areas not already saturated with Coke products. Strong brand recognition and consumer loyalty also allows Coca-Cola Company to pass on (to some degree) increased commodity costs to consumers. Emerging markets will continue to increase Coca-Cola market share but the company will have to be watchful of trends developing in emerging markets similar to those in the United States as emerging markets evolve into developed, slower-growth markets.

Earnings Per Share Results
Coca-Cola Company presented $0.51 earnings per share amount for the third quarter and $1.56 earnings per share amount year-to-date for 2012. The year-to-date earnings per share represents a 2% increase overall but the Q3 rate is a decrease from Q2 and an increase from Q1 earnings per share numbers which were $0.61 and $0.45 respectively (Bloomberg, 2012). Analysts estimate that the Q4 earnings per share will be $0.43 rounding out 2012 with overall earnings per share amount of $2.00, an $0.08 increase from the 2011 earnings per share amount of $1.92 (Bloomberg, 2012). Note that Coca-Cola had a two-for-one stock split in July 2012 and this is reflected in the earnings per share reporting (Zacks, 2012).
Long term growth targets for Coca-Cola continue to estimate moderate growth increases in developed markets spurred by consumer loyalty to sparkling beverages with increased consumption of new/differentiated still beverage offerings. Moderate to significant growth increases are expected in emerging markets as Coca-Cola invests more heavily in those areas in an effort to dominate those markets with...

Other Papers Like Coca Cola Financial Analysis

Financial Essay

2496 words - 10 pages their brand and will that effect our partaking in a company with a bad outlook from the public? - Will global competition overtake the Coca-Cola Company as the top power in their market? The research that has been gathered is from secondary sources that are mainly from creditable online sources. Charts and graphs will also be used to visually show information on the Coca-Cola Company. A strength, weakness, opportunity, and threat analysis

Mgt 521 Coca Cola Co. Part 1

1212 words - 5 pages , Georgia to selling billions a day all over the world. According to the Fortune 500, Coca Cola Co ranks number 59 on the 2012 list with revenues of $46,542. millions and profits of $8,572. Millions (CNN Money, 2012). SWOT Analysis The SWOT Analysis is “ a planning tool used to analyzed an organization’s strengths, weaknesses, opportunities, and threats” (Nickels, W.G, McHugh, J. M. & McHugh, S.M., 2010). Coca Cola Company is the major

Coca Cola Communication Critique

2463 words - 10 pages today is a broad function of business composed of many elements” (Kumar, 2001, p.1). Therefore, all elements of marketing need to be perfected in order for the company to be successful in a long-term perspective. This article represents a critical analysis of marketing communications materials used by Coca-Cola Company a global beverage manufacturer and retailer based in Georgia, United States. The Coca-Cola Company comprises many brands and

Coca-Cola Use of Information Sources

1151 words - 5 pages tightly integrated with other SAP systems.  SEM provides Business Planning Simulation for finances, Data Warehousing for information collection and data analysis, and can also generate financial reports and monthly sales forecasts ("Coca-Cola goes live,").  mySAP Business Integration and Financials has allowed Coca-Cola to consolidate business and planning, and the data warehousing insures that all financial records can be kept without taking up

Mgt 521 Coca Cola Co. Part 2

804 words - 4 pages effect on the company. In the external aspect knowing the SWOT analysis of Coca Cola will be very helpful, because the changes of the company will generate the opportunities and or the threats that Coca Cola officials must be conscious of. Coca Cola’s Financial Health Coca Cola Co. performance is an excellent channel for the future. Shows the history of what the company is all about, but lacks of upcoming tasks. The company’s total

Strategy, Balanced Scorecard and Strategic Profitability Analysis

4019 words - 17 pages and value proposition of Coca- Cola. Then, Porters Fives Forces Framework will be used to illustrate the five forces of Coca- Cola. Lastly, Balanced Scorecard will be utilised as a contemporary performance measurement framework to evaluate the strategies and current financial and non-financial managements of Coca-Cola as well as recommendations provided. 2. Strategy Coca-Cola is primarily a marketing company that sold more than

Coca-Cola Comany Ethical Crisis

2892 words - 12 pages dilemmas. These problems have had a direct negative impact on Coca-Cola’s financial expansion, corporate culture, business relations, as well as their shareholder. Through thorough examination of past ethical dilemmas, grievance resolution, and utilizing third party consulting, Coca-Cola is on route to regain trust from consumer and business partners. Coca-Cola began to struggle in 1997 shortly after CEO Robert Goizueta passed away and Doug Ivester

Coca Cola Team

5219 words - 21 pages and improved production levels for their products which further enhance the economic development of the communities in which the company operates. This marketing plan will outline the company strategies to grow in financial ranking, customer base, and maintain its competitive advantage. This plan will also introduce a new product, the Coca-Cola variety pack, as a product that will help reach the goals summarized. 3. Strategic Focus and

Coca Cola

865 words - 4 pages to inspire moments”. Financial encouragement help the employees be motivated to do their job sufficient. Organizational design for the coca cola organization is that the customers are always first and company take care their employees really really good. The company goal is to make customer happy and expect to have smart workers. Managers at the company have regular meetings with company workers about their problems, new ideas and how they

Marketing

1231 words - 5 pages as sponsoring sports event like NBA, football competitions. These marketing campaigns result in Coca Cola being seen as a lifestyle symbol. Section 2 ECONOMIC There has been much economic uncertainty and little economic growth since the financial crisis in 2008. During this period, unemployment rate was relatively high as people lost their jobs and inflation rate increased. With the consumer confidence so low, and reduced disposable

Star Bucks

1298 words - 6 pages PROJECT ON COCA COLA ASSESSING THE IMPORTANCE OF ORGANIZATIONAL RESOURCE MANAGEMENT SUBMITTED BY * *RYAN MARTINS * REGNO*: 634 Contents DEFINATION OF RESOURCE MANAGMENT The process of using the company’s resources in the most efficient way possible this resources can include tangible resources such as goods and equipments and financial resources and also labour resource such as employees. Resource management can include

Related Essays

Coca Cola Financial Analysis

2468 words - 10 pages -analysis-on.net/NYSE/Company/PepsiCo-Inc http://www.pepsico.com/Company.html http://investing.businessweek.com/research/stocks/financials/ratios.asp?ticker=KO:US http://www.gurufocus.com/news/133348/longterm-financial-analysis-of-cocacola http://seekingalpha.com/article/606481-coca-cola-acceptable-risk-adjusted-returns-at-the-current-price

Financial Analysis Of Coca Cola Co

3417 words - 14 pages Financial Analysis of Coca-Cola Co. Financial Analysis of Coca-Cola Co. The Coca-Cola Company is the world largest beverage company. Along with Coca-Cola, recognized as the world’s most valuable brand, the company markets four of the world’s top 5 non-alcoholic sparkling brands, including Diet Coke, Fanta, and Sprite. Consumers in more than 200 countries are enjoying the company’s beverages at a rate exceeding 1.4 billion servings each day

Financial Management: Pepsico And Coca Cola 2009 Annual Reports

1822 words - 8 pages Financial Management: PepsiCo and Coca-Cola 2009 Annual Reports BUS 500 Instructor: Gary Shelton December 7, 2010 Abstract In this paper I will use the information obtained from the PepsiCo and Coca-Cola 2009 annual reports to determine financial information about these companies. I will answer questions about the companies assets and liabilities, profits, and if they can satisfy stockholders. What conclusions can you make

Market Analysis Coca Cola

1153 words - 5 pages Market Analysis Coca Cola Market Size Coca Cola is one of the leading beverage companies in Pakistan. It covers the large market segment. From the facts it is revealed that the market for coca cola as mentioned in the SWOT analysis segment is encouraging. It is the second largest usage in Pakistan. Still it has a great potential in Pakistan market. It focusers on it deficiencies and try to over come it than it will definitely grow more than