Analyzing Financial Statements

Every publicly traded company must keep financial records that conform to the standards which are laid out by the SEC. In accordance with the SEC regulation, Coca-Cola must provide their corporation’s financial records to the public. While there are some weaknesses as well as strengths, the trends from the past three years definitely prove to be very fascinating.

Three strengths that was found on the financial statements of Coca- Cola are: the total asset value since it has considerably grown from the past years’ reports; the common stock because it has remained the same for the past three consecutive years; and the increased cash balance at the end of the year in 2010 which has increased as well from the past years’ reports. However, just like there is strengths there are also weaknesses. The three weaknesses found on these financial statements are: the company’s long-term debt amount since it has increased drastically from the past years; the increased amount of losses that were reported between 2008 and 2010; and the common stock since there had been no increase in stocks. Now, the investigation of the financial statements finds itself at the net profit trends of Coca-Cola, as well as analyzing the amount of debt that this company has compared to the total assets and total equity.

The net profit trends of Coca-Cola are steadily increased between 2008 and 2010. Coca-Cola’s debt compared to their total assets is very small since there is more assets then what there is liabilities overall. The total equity is impacted because the assets heavily outweigh the liabilities.

There is constant increases throughout the past three years which indicate many strengths; however, there were some weaknesses identified. Coca- Cola has not released any public statement concerning their plan of action to correct problems.

References: http://www.thecoca-colacompany.com/investors/pdfs/10-K_2010/12_Coca-Cola_Item8.pdf