Coca Cola Financial Analysis
Jennifer M. Harding
Cardinal Stritch University
MBA 521 August 28th, 2014
Purpose of Analysis
All managers need to understand where value comes from in their firm. The purpose of this analysis is to identify the financial strategy and performance of this particular publicly traded company. The process of understanding the risk and profitability of a company by analyzing reported financial info, especially annual and quarterly reports are vital to identifying the company’s overall financial performance. I wanted to analyze Coca Cola because the company has so much history and is one of the most recognizable brands in the world. I have always enjoyed researching food and beverage companies …show more content…
Through the world’s largest beverage distribution system, consumers in more than 200 countries enjoy Coca Cola beverages at a rate of 1.9 billion servings a day (Profile, 2). Beverages bearing the trademark "Coca-Cola" or "Coke" accounted for approximately 78% of the company's total gallon sales. According to the 2007 Annual Report, Coca-Cola had gallon sales distributed as follows: * 43% in the United States * 37% in Mexico, India, Brazil, Japan and the People's Republic of China * 20% spread throughout the rest of the world
In 2010, it was announced that Coca-Cola had become the first brand to top £1 billion in annual UK grocery sales. Coca-Cola is the best-selling soft drink in most countries, and was recognized as the number one global brand in 2010. While the Middle East is one of the only regions in the world where Coca-Cola is not the number one soda drink, Coca-Cola nonetheless holds almost 25% market share (to Pepsi's 75%) and had double-digit growth in 2003 (Profile,1). Similarly, in Scotland, where the locally produced Irn-Bru was once more popular, 2005 figures show that both Coca-Cola and Diet Coke now outsell Irn-Bru. In Peru, the native Inca Kola has been more popular than Coca-Cola, which prompted Coca-Cola to enter in negotiations with the soft drink's company and buy 50% of its stakes. In Japan, the bestselling soft drink is not cola, as (canned) tea and coffee are more popular. As such, The Coca-Cola Company's bestselling