Financial Statement Analysis - Cocacola

Contents

Executive Summary 1

1. Industry and Business Strategic Analysis 2

1.1. Company Overview 2

1.2. Industry Overview 2

1.3. Competitive Analysis 2

1.3.1. Rivalry among Existing Firms 2

1.3.2. Bargaining Power of Suppliers 3

1.3.3. Bargaining Power of Buyers 3

1.3.4. Threat of New Entrants 4

1.3.5. Threat of Substitute Products 4

1.4. Competitive Strategy 4

1.5. Corporate Strategy 5

1.6. Macroeconomic Outlook 5

2. Accounting Analysis 5

2.1. Introduction 5

2.2. Identifying Key Accounting Policies 6

2.3. Degree of Accounting Flexibility 6

2.4. Evaluating Accounting Strategy 7

2.5. Evaluating the Quality of Disclosure 7

2.6. Identifying Potential Red Flags 8

3. Financial Analysis 8

3.1. Introduction 8

3.2. Financial Performance Overview 8

3.3. Financial Ratio Analysis 10

3.3.1. Profitability Analysis 11

i. Return on Equity 11

ii. NOPAT Margin 12

iii. Asset Turnover 12

iv. Interest Coverage Ratio 13

v. Net Profit Margin 14

vi. Gross Profit Margin 15

3.3.2. Capital Structure Analysis 16

i. Debt to Equity Ratio 16

3.3.3. Liquidity Analysis 16

i. Current Ratio 17

ii. Quick Ratio 17

3.3.4. Asset Management Analysis 18

i. Inventory Turnover 18

ii. Working Capital Turnover 19

3.3.5. Cash Flow Analysis 20

3.3.6. Share Price Analysis 21

4. Prospective Analysis 22

Reference 25

Executive Summary

This report provides an analysis and evaluation of Coca-cola Amatil Limited‘s viability for investment. CCL is one of the largest bottlers company in the world which has a variety of beverages products as well as packaged food. CCL positioned well in food and beverages industry as well as among its competitors such as Frucor and Schweppes. Moreover, methods of financial analysis which are used include trend analysis and ratios, also the calculations can be found in the appendices.

It can be seen the accounting analysis reveals that CCL’s accounting capture its economic reality...