Coca-Cola Company

JOHN QUISENBERRY SHAHID SATTAR

PRODUCT: 20 OZ BOTTLE

Table of Contents
Mission Statement.......... 3 Brief History..4 Income Statement..5 Income Statement Analysis.....6 Balance Sheet.7 Balance Sheet Analysis......8 Supporting Graphs.9 Stocks (4/2012-4/2013).10 Stocks (4/2010-4/2013).11 Dividends ...12 Ratios.13 Coca-Cola Statement 14 Cost of a 20 oz. Bottle of Coke.15 Contribution Margin 16 Relevant Cost17 Product Development .18 Product Development..19 Conclusion .20 References ....21

Mission Statement
Our Roadmap starts with our mission, which is

enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions. To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference.

Brief History
Currently number 59 on Forbes Top 100 Fortune

500 companies Brought in a total gross profit of $28,964,000 in 2012 Main competitors are Pepsi Co and Dr. Pepper Snapple Group For an interactive timeline of company history from 1886 to present: http://heritage.coca-cola.com/

Income Statement
In Millions of USD (except for per share items) Revenue Other Revenue, Total Total Revenue Cost of Revenue, Total Gross Profit Selling/General/Admin. Expenses, Total Research & Development Depreciation/Amortization Interest Expense(Income) - Net Operating Unusual Expense (Income) Other Operating Expenses, Total Total Operating Expense Operating Income Interest Income(Expense), Net Non-Operating Gain (Loss) on Sale of Assets Other, Net Income Before Tax Income After Tax Minority Interest Equity In Affiliates Net Income Before Extra. Items Accounting Change Discontinued Operations Extraordinary Item Net Income 12 months ending 2012-12-31 48,017.00 48,017.00 19,053.00 28,964.00 12,506.00 447.00 5,232.00 37,238.00 10,779.00 137.00 11,809.00 9,086.00 -67.00 9,019.00 9,019.00 12 months ending 2011-12-31 46,542.00 46,542.00 18,215.00 28,327.00 12,112.00 732.00 5,310.00 36,369.00 10,173.00 529.00 11,458.00 8,646.00 -62.00 8,584.00 8,584.00

Income Statement Analysis

Coca-Cola showed a 3.17% increase in revenue from

2011 to 2012
A 2.25% increase in gross profit A 5.96% increase in operating income

A 5.07% increase in net income

Balance Sheet
In Millions of USD (except for per share items) Cash & Equivalents Short Term Investments Cash and Short Term Investments Accounts Receivable - Trade, Net Receivables - Other Total Receivables, Net Total Inventory Prepaid Expenses Other Current Assets, Total Total Current Assets Property/Plant/Equipment, Total - Gross Accumulated Depreciation, Total Goodwill, Net Intangibles, Net Long Term Investments Other Long Term Assets, Total Total Assets Accounts Payable Accrued Expenses Notes Payable/Short Term Debt Current Port. of LT Debt/Capital Leases Other Current liabilities, Total Total Current Liabilities Long Term Debt Capital Lease Obligations Total Long Term Debt Total Debt Deferred Income Tax Minority Interest Other Liabilities, Total Total Liabilities Total Equity As of 2012-12-31 8,442.00 8,109.00 16,551.00 4,759.00 4,759.00 3,264.00 2,781.00 2,973.00 30,328.00 23,486.00 -9,010.00 12,255.00 15,082.00 10,448.00 3,585.00 86,174.00 1,969.00 6,376.00 16,297.00 1,577.00 1,602.00 27,821.00 14,736.00 14,736.00 32,610.00 4,981.00 378.00 5,468.00 53,384.00 32,790.00 As of 2011-12-31 12,803.00 1,232.00 14,035.00 4,920.00 4,920.00 3,092.00 3,450.00 0.00 25,497.00 23,151.00 -8,212.00 12,219.00 15,450.00 8,374.00 3,495.00 79,974.00 2,172.00 6,488.00 12,871.00 2,041.00 711.00 24,283.00 13,656.00 13,656.00 28,568.00 4,694.00 286.00 5,420.00 48,339.00 31,635.00

Balance Sheet Analysis

Coca-Cola showed a 18.95% increase in current

assets from 2011-2012 A 7.75% increase in total assets A 14.56% increase in current liabilities A 10.44% increase in total liabilities A 14.15% increase in total debt A 3.65% increase in total equity

Supporting Graphs

Stocks (4/2012-4/2013)
In the past year stock prices have ranged from

$35.58-40.70

Stocks (4/2010-4/2013)
In the past three years, stock prices have steadily

increased from $25-41

Dividends
Current annual dividends per share is $2.04

During the past 50 years Coca-Cola has increased

dividends annually In 2011 Coca-Cola returned 4.3 billion dividends to its stock holders

Ratios
Debt-to-Equity: 1.63 Current: 1.09

Quick: 0.97
Return on Equity: 0.28 Return on Assets: 0.11

Coca-Cola Statement
THE COCA-COLA COMPANY AND SUBSIDIARIES Condensed Consolidated Statements of Income
(UNAUDITED) (In millions except per share data) 2012 $4,628

Cost of Goods Sold

http://assets.cocacolacompany.com/9a/50/f56e7b17483890521c2dd8a3cee8/2012%20Q4%20Earn ings%20Release_FINAL.pdf Page 17

Cost of a 20 oz.Bottle of Coke

Price: $1.25 Number of Units Sold = Total Revenue/Price

$48,017/$1.25 = 38,413.60 (in millions other than price)

Cost Per Unit = Cost of Goods Sold/Number of Units Sold

$4,628/38,413.60 = $0.12 (in millions other than cost)

Cost is $0.12 per bottle of Coke Variable Ratio is 9.6% ($0.12/$1.25)

Contribution Margin
CM = Price Cost
$1.25

- $0.12 = $1.13 $1.13/$1.25 = 90.4%

Relevant Cost
Direct Material: $0.07

The Plastic Bottle and Cap: $0.04 Label: $0.01 Soda: $0.02

Direct Labor: $0.03 Overhead: $0.02

Total Cost: $0.12

Product Development
Positive Vintigo
This is the first product developed by Coca-Cola India to address the issue of hidden hunger It provides a healthier Coke product option, containing five essential micronutrients Iron, Folic Acid, Vitamin A, Vitamin C and Zinc

Product Development
Negative Coca-Cola must battle health studies proving health risks associated with soft drinks

Conclusion
Based on all of our analysis of the financial statements and

stock prices, we have come to the conclusion that Coca-Cola is an extremely profitable company. They have the track record to prove their company, 125 years later, is still up and rising. The products that they offer appeal to a wide variety of consumers that ensure an increasing revenue each year. Although obesity is a rising issue around the world, Coca Cola continues to innovate its products to meet its consumers needs as a whole. With a low cost of production, it is relatively easy for Coca-Cola to cash in on huge net incomes annually. Due to all of this, we feel that Coca-Cola will continue to be profitable for a long time to come.

References
http://www.coca-colacompany.com/investors/stock-history/ http://heritage.coca-cola.com/ http://www.google.com/finance?fstype=ii&q=NYSE:KO www.coca-colacompany.com/investors/investors-info-stock-information http://assets.coca-

colacompany.com/9a/50/f56e7b17483890521c2dd8a3cee8/2012%20Q4%20Earn ings%20Release_FINAL.pdf
www.coca-colaindia.com/sustainability/inovation.html http://killercoke.org/health_issues.php#1