Examine the following table of ratios for Coca Cola Co. Consider what story these ratios tell you about the financial health of the company. In a 2- to 3-page paper, comment on the following, specifying which ratios you used to draw your conclusions:

  1. Trends in profitability
  2. Trends in debt
  3. Ability of the company to meet its financial obligations
  4. How efficiently the company is using its assets

Coca Cola Ratio Analysis

2014

2015

2016

Profitability

Return on Equity (%)

22.36

26.31

26.85

Return on Assets (%)

7.80

8.07

7.36

Profit Margin (%)

15.43

16.60

15.59

Leverage

Debt-to-Equity (%)

0.63

1,11

1.29

Efficiency

Asset Turnover

0.51

0.49

0.47

Days Inventory

65.06

62.66

61.82

Liquidity

Current Ratio

1.02

1.24

1.28

Quick Ratio

0.81

0.89

0.98

Source for Ratios: http://financials.morningstar.com/ratios/r.html?t=KO

Keys to the Assignment

  • Pay attention to how the different ratios relate to each other.
  • Cite all sources and provide a reference list using APA format.
  • Proofread and edit the paper. The goal is zero errors.
  • Submit your paper to TLC by the due date for this module.
  • For instruction on writing papers, citing sources, proper referencing, and so forth, use Trident University’s: Student Guide to Writing a High-Quality Academic Paper.