20 ratios Coca Cola Company 2013
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20_ratios.docxGuy Crawford
ACC 2071
Extra Credit
I need the following 20 ratios calculated using the information provided on the Coca Cola Company’s 2013 financial summary. If any financial information is missing it can be found on the company’s website.
Ratio Computation__________________________________
Working Capital current assets - current liabilities
Current Ratio Total current assets / Total current liabilities
Cash Ratio Cash + Cash equivalents / Total Current Liabilities
Acid -Test Ratio Cash + Short-term investments + Net current receivables / Total current liabilities
Inventory turnover Costs of goods sold / Average merchandise inventory
Days’ sales in inventory 365 days / inventory turnover
Gross profit percentage Gross profit / Net sales revenue
Accounts receivable turnover ratio Net credit sales / Average net accounts receivable
Days’ sales in receivables 365 days / Accounts receivable turnover ratio
Debt ratio Total liabilities / Total assets
Debt to equity ratio Total liabilities / Total equity
Times-interest-earned ratio Net income + income tax expense + interest expense / interest expense
Profit margin ratio Net income / Net sales
Rate of return on total assets Net income + interest expense / Average total assets
Asset turnover ratio Net sales / Average total assets
Rate of return on common Net income – Preferred dividends / Average common stockholders’ equity
Stockholders’ equity
Earnings per share Net income – Preferred dividends / weighted average number of common shares outstanding
Price / earnings ratio Market price per share of common stock / Earnings per share
Dividend yield Annual dividend per share / Market price per share
Dividend payout Annual dividends per share / Earnings per share
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Year Ended December 31, 2013
(In millions except per share data)
NET OPERATING REVENUES $ 46,854
Cost of goods sold 18,421
GROSS PROFIT 28,433 28,964 28,327
Selling, general and administrative expenses 17,310
Other operating charges 895
OPERATING INCOME 10,228
Interest income 534
Interest expense 463
Equity income (loss) — net 602
Other income (loss) — net 576
INCOME BEFORE INCOME TAXES 11,477
Income taxes 2,851
CONSOLIDATED NET INCOME 8,626
Less: Net income attributable to noncontrolling interests 42
NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY $ 8,584
BASIC NET INCOME PER SHARE1 $ 1.94
DILUTED NET INCOME PER SHARE1 $ 1.90
AVERAGE SHARES OUTSTANDING 4,434
Effect of dilutive securities 75
AVERAGE SHARES OUTSTANDING ASSUMING DILUTION 4,509
1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.
Refer to Notes to Consolidated Financial Statements.
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Year Ended December 31, 2013
(In millions)
CONSOLIDATED NET INCOME $ 8,626
Other comprehensive income:
Net foreign currency translation adjustment (1,187)
Net gain (loss) on derivatives 151
Net unrealized gain (loss) on available-for-sale securities (80)
Net change in pension and other benefit liabilities 1,066
TOTAL COMPREHENSIVE INCOME 8,576
Less: Comprehensive income (loss) attributable to noncontrolling interests 39
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO SHAREOWNERS OF
THE COCA-COLA COMPANY $ 8,537
Refer to Notes to Consolidated Financial Statements.
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, 2013
(In millions except par value)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 10,414
Short-term investments 6,707
TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 17,121 13,459
Marketable securities 3,147
Trade accounts receivable, less allowances of $61 and $53, respectively 4,873
Inventories 3,277
Prepaid expenses and other assets 2,886
Assets held for sale — 2,973
TOTAL CURRENT ASSETS 31,304
EQUITY METHOD INVESTMENTS 10,393
OTHER INVESTMENTS, PRINCIPALLY BOTTLING COMPANIES 1,119
OTHER ASSETS 4,661
PROPERTY, PLANT AND EQUIPMENT — net 14,967
TRADEMARKS WITH INDEFINITE LIVES 6,744
BOTTLERS’ FRANCHISE RIGHTS WITH INDEFINITE LIVES 7,415
GOODWILL 12,312
OTHER INTANGIBLE ASSETS 1,140
TOTAL ASSETS $ 90,055
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 9,577
Loans and notes payable 16,901
Current maturities of long-term debt 1,024
Accrued income taxes 309
Liabilities held for sale — 796
TOTAL CURRENT LIABILITIES 27,811
LONG-TERM DEBT 19,154
OTHER LIABILITIES 3,498
DEFERRED INCOME TAXES 6,152
THE COCA-COLA COMPANY SHAREOWNERS’ EQUITY
Common stock, $0.25 par value; Authorized — 11,200 shares;
Issued — 7,040 and 7,040 shares, respectively 1,760
Capital surplus 12,276
Reinvested earnings 61,660
Accumulated other comprehensive income (loss) (3,432)
Treasury stock, at cost — 2,638 and 2,571 shares, respectively (39,091) (35,009)
EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY 33,173 32,790
EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS 267 378
TOTAL EQUITY 33,440 33,168
TOTAL LIABILITIES AND EQUITY $ 90,055 $ 86,174
Refer to Notes to Consolidated Financial Statements.
76
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31, 2013
(In millions)
OPERATING ACTIVITIES
Consolidated net income $ 8,626
Depreciation and amortization 1,977
Stock-based compensation expense 227
Deferred income taxes 648
Equity (income) loss — net of dividends (201)
Foreign currency adjustments 168
Significant (gains) losses on sales of assets — net (670)
Other operating charges 465
Other items 234
Net change in operating assets and liabilities (932)
Net cash provided by operating activities 10,542
INVESTING ACTIVITIES
Purchases of investments (14,782)
Proceeds from disposals of investments 12,791
Acquisitions of businesses, equity method investments and nonmarketable securities (353)
Proceeds from disposals of businesses, equity method investments and nonmarketable securities 872
Purchases of property, plant and equipment (2,550)
Proceeds from disposals of property, plant and equipment 111
Other investing activities (303)
Net cash provided by (used in) investing activities (4,214)
FINANCING ACTIVITIES
Issuances of debt 43,425
Payments of debt (38,714)
Issuances of stock 1,328
Purchases of stock for treasury (4,832)
Dividends (4,969)
Other financing activities 17
Net cash provided by (used in) financing activities (3,745)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (611)
CASH AND CASH EQUIVALENTS
Net increase (decrease) during the year 1,972
Balance at beginning of year 8,442
Balance at end of year $ 10,414
Refer to Notes to Consolidated Financial Statements.
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREOWNERS’ EQUITY
Year Ended December 31, 2013
(In millions except per share data)
EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY
NUMBER OF COMMON SHARES OUTSTANDING
Balance at beginning of year 4,469
Purchases of treasury stock (121)
Treasury stock issued to employees related to stock compensation plans 54
Balance at end of year 4,402
COMMON STOCK $ 1,760
CAPITAL SURPLUS
Balance at beginning of year 11,379
Stock issued to employees related to stock compensation plans 569
Tax benefit (charge) from stock compensation plans 144
Stock-based compensation 227
Other activities (43)
Balance at end of year 12,276
REINVESTED EARNINGS
Balance at beginning of year 58,045
Net income attributable to shareowners of The Coca-Cola Company 8,584
Dividends (per share — $1.12, $1.02 and $0.94 in 2013, 2012 and 2011, respectively) (4,969)
Balance at end of year 61,660
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Balance at beginning of year (3,385)
Net other comprehensive income (loss) (47)
Balance at end of year (3,432)
TREASURY STOCK
Balance at beginning of year (35,009)
Stock issued to employees related to stock compensation plans 745
Purchases of treasury stock (4,827)
Balance at end of year (39,091)
TOTAL EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY $ 33,173
EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS
Balance at beginning of year $ 378
Net income attributable to noncontrolling interests 42
Net foreign currency translation adjustment (3)
Dividends paid to noncontrolling interests (58)
Acquisition of interests held by noncontrolling owners (34)
Contributions by noncontrolling interests 6
Business combinations 25
Deconsolidation of certain entities (89)
TOTAL EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS $ 267
Refer to Notes to Consolidated Financial Statements
