The Coca-Cola
Company
A look into the financials of one of the world’s
most recognized brands
• John Pemberton invents Coke in 1886, name is derived
from coca leaves and kola nuts.
• 1919 The Coca-Cola Company goes public.
• Acquires Minute Maid brand in 1960 and in that decade
releases a string of well known brands such as Sprite and
Diet Coke.
• Roberto Goizueta takes the chairman position in 1981 and
holds it until his death in 1997 bringing the company
from 4 billion dollar company to a 145 billion.
Introduction: Early Years
• In the first few years company faces major set backs,
cutting some 6000 jobs across the board.
• Releases Vanilla Coke and Diet Coke Lime in this period,
both fairly successful launches.
• In 2005 they enter the energy drink market, releasing Full
Throttle.
• By the end of 2010 The Coca-Cola Company had bought
and consolidated most of the independent bottling
agencies responsible for bottling their product.
Introduction: The New
Millenium
• One of the most widely know brands worldwide.
• Second in its market to Pepsi Co.
• Faces stiff competition from Pepsi in soda, bottled water,
and juices.
Where the Company
Currently Stands
1.4
1.2
1.091.091.08
1.17
1.05
0.960.92
1
1.1
0.98
0.8
Coca-Cola
Pepsi Co.
Dr. Pepper
0.6
0.4
0.2
0
2012
2011
Current Ratio
2010
1.4
1.3
1.271.23
1.2
1.2
1
1.18
0.99
0.9
0.85
0.76
0.8
0.6
0.4
0.2
0
2012
2011
2010
Debt to Equity Ratio
Coca-Cola
Pepsi Co.
Dr. Pepper
12
10.51
10
8.73
9.42
9.9
8.91
7.56
8
6
10.31
9.67
Coca-Cola
Pepsi Co.
Dr. Pepper
5.89
4
2
0
2012
2011
2010
Accounts Receivable
Turnover Ratio
45
42.32
40
33.38
35
30
27.9228.8927.62
25
30.36
27.37
25.67
20
18.7
15
10
5
0
2012
2011
Return on Equity
2010
Coca-Cola
Pepsi Co.
Dr. Pepper
40
33.63
35
30
25
20
15
10
18.78
18.42
9.4310.49
9.6910.27
10.93
9.37
2012
2011
2010
5
0
Net Profit Margin
Percentage
Coca-Cola
Pepsi Co.
Dr.Pepper
25
19.42
20
15
11.21
8.99
10.83
10
8.4
11.74
6.89
6.68
5.99
5
0
2012
2011
Return on Assets
2010
Coca-Cola
Pepsi Co.
Dr. Pepper
• The Dr. Pepper Snapple group is one of the few
companies in this market that managed to become
steadily more profitable in recent years
• Pepsi is gaining in popularity all the time and remains
stiff competition forcing Coca Cola to constantly try to
stay ahead to remain profitable
Key Risks to the Firm
• Within in the industry Coca Cola has managed to hedge
out the competition in most of its areas and stay in the
lead in terms of profitability. The Coca-Cola Company
has managed to stay profitable and create a brand name
that has spanned over 100 years. It is likely that Coca
Cola will remain one of the dominant soft drink figures
for years to come.
Their Outlook for the
Future
• The company has a longstanding tradition of topping the
industry regardless of economic conditions.
• There profits are exceptional and even in the worst of
time they are making serious money.
• They are a really strong investment if you are looking for
stability but you will not find the buy low sell high
moments as this company rarely is faced by situations
which would drastically lower the profitability or health
of the company.
Personal Outlook
• I used Mergents company report and competitive report builder
http://eres.medaille.edu:2051/companyfinancials.php?pagetype=asre
ported&compnumber=1832&period=Annuals&dataarea=BS&range=
3&currency=AsRep&scale=1000000&Submit=Refresh
• Hoovers Company History
http://eres.medaille.edu:2292/H/company360/history.html?companyI
d=10359000000000
References