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As one of the world's largest beverage companies, Coca Cola is under a great deal of pressure. This company's business practices have included discrimination based on race, deceptive market tests, earnings manipulation, and the disruption of long-term contracts with distributors. “Coca Cola is a major player in the social and environmental arenas. They have taken several steps to ensure that their products do not cause harm to the environment” (Coca Cola Company, 10-K Report, 2022, Pag. 45/183). The use of environmentally friendly facilities and equipment is one of these solutions. Coke has done a great job of addressing environmental concerns. They have been working toward water neutrality for a long time. Which means that every drop of water that is used by the company will be replenished by 2020. And Coca Cola's impact on education is significant. More than $22 million has been distributed in scholarship grants, in addition to numerous other initiatives. Customers love Coca Cola, but the company is not completely flawless. The company's stock price has remained at the same level for the last ten years. This is because the company has ethical problems. In 1999, several Belgian children became ill after drinking a Coca Cola-brand product. As a result, every Coca Cola product was recalled, leading to a tarnished reputation for the company.

Additionally, throughout its history, Coca Cola has been charged with violating workers' rights, water privileges, and worker discrimination. 1500 African American workers who worked for Coca Cola in 1999 filed a lawsuit against the company, alleging racial discrimination. “Despite the fact that their work was equal, they were penalized for putting this race lower on the pay scale. The staggering annual salary difference was $26,000 less” (Clayman & Troughton, G. H. (2019). To repair its reputation, Coca Cola established a diversity council and settled a racial discrimination lawsuit for $193 million. These are just two of the ethical conundrums that Coca Cola has encountered over the years. As a whole, Coca Cola is still striving to keep its ethical concerns to a minimum to concentrate on expanding its global reach.

But even though the company says it has fixed all of its problems in India and is trying to help the country's people, the government and people of Kerala say that the company has cut off groundwater supplies in the area. Throughout the company's history, shareholder sentiment has shifted numerous times, but the company has managed to hold on to a sizable fan base. To move Coca Cola into the twenty-first century with profitability, the company hopes its current leadership will be strong enough to overcome this focus on ethics. Despite the company's claims to the contrary, the government and the people of Kerala maintain that the company has drained the area's groundwater supply. The company's loyal customers have changed many times over the years, but the company still has a large following. To move Coca Cola beyond the twenty-first century with profitability, the company hopes its current leadership will be strong enough to overcome this focus on ethics.

In the years between 2010 and 2022, Coca-annual Cola's quarterly net income increased steadily. A company's net profit or loss is the balance left after deducting all revenues, income sources, and expenses. As of March 31, 2022, Coca Cola had a net income of $2.781 billion, a 23.88 percent year-over-year rise. For the year ending March 31, 2022, Coca Cola's net income totaled $10.307 billion, an increase of 42.82 percent from the year before. For 2021, Coca Cola's annual net income was $9.771 billion, an increase of 26.13 percent” from the year before. In 2020, “Coca-annual Cola's net income was $7.747 billion, a decrease of 13.15 percent from 2019. Profits for Coca Cola were $8.92 billion in 2019, up 38.64 percent from the previous year (Stock Analysis on Net, 2022).

Although Coca Cola had more details in their notes about key long-lived assets, between 2010 and 2022, the equity method investments were low in total assets, and they were increasing during the years despite the Pandemic.

When such events or changes in circumstances are present, it could be necessary and important to review their Financial Statements, Industry Average, and Common Sizes Financial Statements.

During the last years, it has been very common that Coca Cola estimates the future cash flows from the use of the asset (or asset group) and its eventual disposition. These estimated future cash flows are consistent with those the management uses in their internal planning. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, they recognize an impairment loss.

The impairment loss recognized is the amount by which the carrying amount exceeds the fair value. It is very common that they use a variety of methodologies to determine the fair value of property, plant, and equipment, including appraisals and discounted cash flow models, which are consistent with the assumptions they believe hypothetical marketplace participants would use.

· Industry Average

Under their 10-K Report for 2022, I analyzed their industry average, and I can get the following points I considered necessary to know.

Enterprise Value: For the current quarter, net revenues grew 7.53% to $9.5 billion, resulting in net revenues ahead of 2019, and organic revenues (non-GAAP) grew 9%. We could think revenue performance included a 7.53% growth in price/mix and a decline of 1% in concentrate sales.

Enterprise Value/EBITDA: For the current quarter (07/30/2022) operating margin, which included items impacting comparability, was 19.05% versus 69.02% in the prior year, while the comparable operating margin (non-GAAP) was 94.46% versus 81.63% in the prior year. For both the quarter and the full year, operating margin compression could be driven by a significant increase in marketing investments versus the prior year. Additionally, the fourth quarter operating margin could be impacted.

· Common Sizes Financial Statements

Financial statements in Common Sizes allow management to make important decisions easily. One of the things I appear important to know, and I can get by this analysis, was their results in general during 2015 and 2021 were moderately consistent, taking into account the market.

“The Treasury stock in the balance sheet has developed more than 60% of total resources. Yet rather than going about as a caution, it demonstrates the organization had been tremendously fruitful in creating money to repurchase shares, far surpassing what it had held on its monetary record” (Stock Analysis on Net, 2022).

While in terms of net operating revenues, the value for Coca Cola was at 100% for the entire period between 2019 to 2021, as the assessment got conducted on the last day of the year, December 31st. The values analyzed all got recorded on December 31st of each year. In terms of cost of goods sold, the value was -39.23%, -40.69%, and -39.73% for all years from 2019 through 2021.

In terms of gross profit, the values were 60.77%, 59.31%, and 60.27% for all years from 2019 to 2021. There were two components in terms of operating income: the data studied integrated selling, general and administrative expenses, and other operating charges. The values for operating income are 27.06%, 27.25%, and 26.67% for all years from 2019 to 2021.

This indicates a growing trend the company integrated into its operational procedure. The income values from continuing operations before income taxes were 28.94%, 29.53%, and 32.14%, which supported the entire company's operational structure. In terms of net income from continuing operations, the value was 24.11%, 23.53%, and 23.56% from 2019 to 2021.

In conclusion, Coca Cola, one of the biggest beverage corporations in the world, is under a lot of stress. This company's business activities have included breaking long-term agreements with distributors and engaging in false market tests, earnings manipulation, and racial discrimination. Coca Cola plays a significant role in environmental and social movements. To ensure that their products do not affect the environment, they have taken a number of precautions (Coca Cola Company, 10-K Report, 2022, Pag. 35/183). However, the management claims that the company has resolved all of its issues in India and is working to assist the people of that nation.

Although shareholder sentiment has changed frequently over the course of the company's history, it has nonetheless been able to retain a substantial fan base. Coca Cola expects that its present leadership will overcome this emphasis on ethics to guide the corporation into the twenty-first century with profitability. As a large corporation, Coca Cola understands the value of having some policies that support long-term investments or spending accounts. The way or duration in which the Companies intend to use the asset, a significant drop in market value, a significant shift in the business climate in a specific market, or a current-period operating or cash flow loss combined with historical data are just a few examples of the events or changes that may indicate that the recoverability of the carrying amount or remaining useful life of property, plant, and equipment should be evaluated. It could be significant to evaluate their financial statements, industry average financial statements, and financial statements of common sizes when such occurrences or changes in circumstances occur.

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