...Introduction Coca-Cola Amatil Limited (CCL) is the Australasia regional anchor bottler of The Coca Cola Company. The company's Australian origins date back to 1904 as the tobacco company British Tobacco (Australia). Its first foray into soft drinks came in 1964 with the purchase of Coca-Cola Bottlers (Perth), and the company was listed on the Australian Stock Exchange in 1972. Soft drinks and snack foods gradually became the primary focus of the company, which was renamed Amatil Limited in 1977. The snack food operations were sold in 1992, and European operations were spun off into a new company, Coca-Cola Beverages, in 1998. Expansion into Asia continued, though Filipino bottling was eventually sold to San Miguel Brewery and parent The Coca-Cola Company. Its most recent purchase activity has been the acquisition of fruit producer and packager SPC Ardmona Ltd. Until May 2007, the company also operated the online music store, Coke Tunes, out of New Zealand. . Core Business of the Company Coca-Cola Amatil is an anchor bottler of The Coca Cola Company in Asia-Pacific region. It manufactures, distributes, and markets carbonated soft drinks, still and mineral waters, fruit juices, coffee and other alcohol-free beverages. The company also processes and markets fruit, vegetables, and other food products. For the convenient sake of this paper Coca-Cola Amatil is referred its acronym CCA. In August 2006, Coca-Cola Amatil has also ventured into the manufacture...
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...Financial Management: PepsiCo and Coca-Cola 2009 Annual Reports BUS 500 Instructor: Gary Shelton December 7, 2010 Abstract In this paper I will use the information obtained from the PepsiCo and Coca-Cola 2009 annual reports to determine financial information about these companies. I will answer questions about the companies assets and liabilities, profits, and if they can satisfy stockholders. What conclusions can you make about each company’s ability to pay current liabilities? A company’s liabilities are their legal debts and obligations. Liabilities can come up during the company’s business operations and are settled over time. They are settled through by transferring money, goods or services. A list of a company’s liabilities can be found on the balance sheet for the company. Included in the liabilities are loans, accounts payable, mortgages, deferred revenues, and accrued expenses. A company’s ability to pay its liabilities can be determined by analyzing the amount of assets as opposed to the amount of liabilities. To do this you will need to find the current ratio for the company. The current ratio is used to determine if a company’s short-term or current assets are available to pay off its short-term or current liabilities. The liabilities of PepsiCo can be found on the company’s Consolidated Balance Sheet. PepsiCo’s total current liabilities equal 8.765 million dollars. Its total liabilities equal 22.406 million dollars. Its total current assets...
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...Coca-Cola Company Case Study GB 518 Financial Accounting Principles and Analysis Kaplan University SUMMARY Accounting is an important aspect of business because it is the foundation that offers support to management for planning, and controlling activities as well as decisions. When an organization is doing business they need a way to keep score of operational financial activities. The purpose of my research paper is to discuss the details of my interview with an accountant at Coca-Cola Company, Atlanta headquarters. Mr. Joe Angus has worked with the company for twelve years and sat down with me for a 25 minutes interview in his office to eagerly share the accounting practices of the company, and the operating activities within the business that generates revenue and move the business forward. Company Overview The Coca-Cola Company is the largest beverage company in the world that provides consumers with more than 500 sparkling and still brands of refreshing drinks. While Coca-Cola is the most valued brand in the company’s portfolio, it features 15 billion dollar brands including Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitamin water, PowerAde, Minute Maid, Simply, Georgia and Del Valle. Globally, Coca-Cola Company is the number one provider of sparkling beverages, ready-to-drink coffees, juices, and juice drinks. Throughout the world’s largest beverage distribution system, consumers in more than 200 countries enjoy Coca-Cola Company beverages at a rate of more...
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...Income Reporting Trends…………………………………………………………………………...… 6 b) Cash Flow Statement Analysis…………………………………………………................................ 8, 9 1. Cash Reporting Methods……………………………………………………………………………… 8 2. Cash Reporting Trends………………………………………………………………………..…. 9, 10 3. Conclusion…………………………………………………………………………………………………..... 10 4. Bibliography…………………………………………………………….…………………………………….. 11 Introduction Coca-Cola Company was established in 1892 in North America, and has since expanded successfully into the international market, now doing business in over 200 countries around the world (Coca-cola.co.uk. 2013). Coca-Cola sells a wide variety of beverages from water to soft drinks, sports drinks, and teas. Coca Cola Company has acquired existing beverage brands over the years, including Minute Maid and Honest Tea, Inc. Coca-Cola follows the strict financial reporting guidelines established by the ISAB and FASB, and reports financial activities in an unbiased and transparent way. The following analysis looks at the financial statements of Coca-Cola Company during the years of 2010,...
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...Introduction The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of nonalcoholic beverage concentrates and syrups, which is headquartered in Atlanta, Georgia. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia. The company operates a franchised distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company owns its anchor bottler in North America, Coca-Cola Refreshments. According to the 2005 Annual Report, the company sells beverage products in more than 200 countries. The report further states that of the more than 50 billion beverage servings of all types consumed worldwide every day, beverages bearing the trademarks owned by or licensed to Coca-Cola account for approximately 1.5 billion (the latest figure in 2010 shows that now they serve 1.6 billion drinks every day). Of these, beverages bearing the trademark "Coca-Cola" or "Coke" accounted for approximately 78% of the company's total gallon sales. Also according to the 2007 Annual Report, Coca-Cola had gallon sales distributed as follows: 43% in the United States 37% in Mexico, India, Brazil, Japan and the People's Republic of China 20% spread throughout the rest of the world In 2010, it was announced that Coca-Cola had become the...
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...investigates the strategic management of Pepsi Cola and Coca-Cola in an effort to make recommendations on how Pepsi Cola can build strategies in gaining a larger share of the market. The assessment of strategic management begins with the vision and mission of both organizations, which leads into literature review that identifies the consumer preferences of both Pepsi Cola and Coca-Cola. Following the literature review is the teams’ own personal assessment of consumer preferences for the Pepsi Cola and Coca-Cola brand (Please refer to Appendix A for the assessment). Finalizing the investigation are recommendations for Pepsi Cola to gain a larger share of the market. The Cola Wars Research Paper According to an industry report from Hoover’s (2014), the U.S. soft drink industry yields $34 billion annually and continues to grow internationally. The largest markets of consumption for soft drinks outside the U.S. are: Mexico, Chile, Argentina, and Uruguay (Hoover’s, 2014). The constant change of consumer preferences is what drives Pepsi Cola and Coca-Cola to compete for a larger share of the market. The intense rivalry between Coca-Cola and Pepsi Cola have been going on since the late 1800’s (Economy Watch, 2011); when Pepsi Cola was born from a “combination of: carbonated water, kola nuts, vanilla, and rare oils” (Pepsi Legacy Book, p.7. 2005). This paper focuses on the diversified strategies of both Pepsi Cola and Coca-Cola in their efforts to gain the largest share of...
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...Atlanta, Georgia, John Pemberton developed Coca-Cola, a non-alcoholic version of French Wine Coca. The first sales were at Jacob’s Pharmacy in Atlanta, Georgia, on May 8, 1886. It was first sold as a patent medicine for five cents a glass at soda fountains, which were popular in the United States at the time due to the belief that carbonated water was good for your health. Pemberton claimed Coca-Cola cured many diseases, including morphine addiction, headache, and impotence. When launched Coca-Cola’s two ingredients were cocaine and caffeine. The cocaine was derived from the coa leaf and the caffeine from kola nut, leading to the name Coca-Cola. Pemberton called for five ounces of coca leaf per gallon of syrup, a significant dose; in 1891, Candler claimed his formula contained only a tenth of this amount. Coca-Cola did once contain an estimated nine miiligrams of cocaine per glass, but in 1903 it was removed. After 1904, instead of using fresh leaves, Coca-Cola started using “spent” leaves –leftovers of the cocaine extraction process with cocaine trace elevels left over at a molecular level. Today, Coca-Cola uses as an ingredient a cocaine free extract prepared at a Stepan Company in Maywood, New Jersey. In the USA, Stepan Company is the only manufacturing plant authorized by the Federal Government toimprort and process the coca plant, which it obtains mainly from Peru, and Bolivia. Besides producing the coa flavoring for Cac-Cola, Stephan Company extracts cocaine from...
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...respect to its financial health and sustainability, the annual report is essential to providing a snap shot into the businesses financials. There are many sections developed within an annual report, however, the income statement, as well as the balance sheet are critical pieces of the report. Among the various financial reports required by the Sarbanes-Oxley Act of 2002 which "requires companies to establish and maintain internal controls" including the balance sheet which "presents a picture of what a business owns and what it owes" (Kimmel, Weygandt, & Kieso, 2011, p. 11) thus, the annual report can prove critical to an investor. Upon reviewing an organizations balance sheet, there are two separate sections in respect to assets. The section referred to as current assets includes all items that “the company expects to convert to cash or use within one year” such as; cash, inventory items and investments. The term total assets on the balance sheet refers to everything the company owns including intangible assets which are “assets that lack physical substance, but are valuable to the company". According to the annual report retrieved from (Coca-Cola Enterprises, 01/1) the total current assets of Coca-Cola Enterprises at the end of the financial reporting period of 2013 are $2,568.00 (In millions) Which depicts a decrease in current assets from 2012 whereas the report shows $2,762.00. At the end of 2013 Coca-Cola Enterprises reported $9,525.00 (in millions) of total...
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...The Coca-Cola Company July 24, 2011 CONTENTS Abstract……………………………………………………………………………………………3 Coca-Cola: An Introduction.……………………………………………………………………....4 Financial Analysis………………..……………………………………………………………..…6 Competition Analysis: Pepsi………………………………………………………………………9 Recommendations………………………………………………………………………………..13 Conclusion…………………………………………………………………………………….…15 References………………………………………………………………………………………..16 Abstract Many international corporations began as small domestic ventures. As businesses grew, corporations saw the many possibilities brought on by expanding operations. Companies began to expand by opening franchises in various cities, yet they knew there was more potential for success if they were to expand their operations even further. Thousands of companies, such as Coca-Cola, chose cities internationally to gain more revenue. The purpose of a corporation is to maximize profits for all shareholders involved. Opening firms abroad allowed Coca-Cola to gain worldwide recognition, which gave them a competitive advantage over other soft drink makers. Now, Cola-Cola is not only recognized, but it is one of the most consumed soft drinks both within the United States and in cities across the globe. Coca-Cola took a huge risk in expanding their operations. However, their success proves that multinational corporations need to choose the right market to venture into and choose marketing techniques that appeal to their consumers. Coca-Cola: An Introduction In 1866...
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...Coca-Cola Co. (KO) | Short-term (Operating) Activity Analysis Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory. * Ratios (Summary) * Inventory Turnover * Receivables Turnover * Payables Turnover * Working Capital Turnover * Average Inventory Processing Period * Average Receivable Collection Period * Operating Cycle * Average Payables Payment Period * Cash Conversion Cycle Ratios (Summary) Coca-Cola Co., short-term (operating) activity ratios | | Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | Dec 31, 2007 | Dec 31, 2006 | | Turnover Ratios | | Inventory turnover | 13.25 | 13.16 | 14.61 | 13.00 | 14.68 | | Receivables turnover | 7.93 | 8.25 | 10.34 | 8.70 | 9.31 | | Payables turnover | 18.61 | 21.98 | 23.32 | 20.91 | 25.93 | | Working capital turnover | 6.76 | 6.59 | 8.18 | 6.94 | 7.30 | | Average No. of Days | | Average inventory processing period | 28 | 28 | 25 | 28 | 25 | | Add: Average receivable collection period | 46 | 44 | 35 | 42 | 39 | | Operating cycle | 74 | 72 | 60 | 70 | 64 | | Less: Average payables payment period | -20 | -17 | -16 | -17 | -14 | | Cash conversion cycle | 54 | 55 | 45 | 53 | 50 | Source: Based on data from Coca-Cola Co. Annual Reports Ratio | Description | The company | | | | Inventory turnover | An activity ratio calculated as revenue divided by inventory...
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...| 3% | 0.03% | Interest expenses | 733 | 355 | 438 | 106% | 67% | Source: coca cola annual report 2010, 2009 and 2008 * As we can see from the above table that the net revenues (sales) shows an increased in 2010 as compared to 2009 and 2008 with 13% and 10% respectively. The sales were high in 2008 but deteriorate in 2009. The percentage change in net operating revenue due to increase or decrease in concentrates sale volume for our geographic operating segments, while for bottling investment operating segment, the percentage change occurs due to increase or decrease in unit case volume for bottling investment after the impact of structural change. Source: coca cola annual report 2010. * As we can see from the above chart that out of 13% of percentage change in net operating revenue in 2010 , 5% increase due to increase in concentrate sale volume which occurs due to shipments and impact from certain joint venture in which the company possessing an equity. While the impact of geographic mix on net revenue is 1% due to growth of the coca cola in emerging and developing market, but it is unfavourable as the net revenue per unit sold is less in in developing market as compared to developed market. The currency fluctuation increased the net revenue by 2% which was primarily occurs due to weaker U.S. dollar compared to other foreign currencies. * According to the coca cola annual report 2010, the increased in interest expenses of $378 million or by 106% in 2010 was...
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...healthier financial status. I will be evaluating PepsiCo, Inc. and The Coca-Cola Company, and their current financial situations to see if or where each company can improve. I will also evaluate each company to see which is more financially stable based upon their current financial reports. You will find not only data from 2004-2005, but also data from 2011-2012 in this paper as I feel the past financial statements can be just as important when trying to determine the stability of a company. The Coca-Cola Company A well known company that produces more than 500 nonalcoholic beverages openly stated within their 2012 Financial Report that: Increased competition could hurt our business. The nonalcoholic beverage segment of the commercial beverage industry is highly competitive. We compete with major international beverage companies that, like our Company, operate in multiple geographic areas, as well as numerous companies that are primarily local in operation. In many countries in which we do business, including the United States, PepsiCo, Inc. is a primary competitor. Other significant competitors include, but are not limited to, Nestlé, DPS, Groupe Danone, Kraft Foods Group, Inc., and Unilever. In certain markets, our competition includes major beer companies. Our beverage products also compete against local or regional brands as well as against private label brands developed by retailers, some of which are Coca-Cola system customers. Our ability to gain or maintain share of sales...
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...The Coca-Cola Company and PepsiCo Pension Plans Intermediate Accounting III – ACC 305 Strayer University November 20, 2011 Abstract The Coca-Cola Company and PepsiCo are both very large manufacturing corporations that operate worldwide. Over the years, each corporation has had a very longevity of business success. The expansion of business and brands through subsidiaries, partnerships and franchises in beverage and food products has been a consistent growth in retail sales for both corporations. With such growth, they employ thousands of employees worldwide and offer competitive benefits to include medical, life, and retirement. In 2006, both corporations adopted SFAS 158, Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans — an amendment of FASB Statements No. 87, 88, 106, and 132(R) (SFAS 158). For this particular paper, the goal will be to complete a comparative analysis of the pension plans that each corporation make available to their employees and retirees. Analysis A pension plan is an employer contributory or noncontributory saving plan which can also be qualified and nonqualified that businesses offer to their employees to assist with their retirement. With contributory plans, the employer and the employee make contributions into the savings. Whereas, with noncontributory plans, only the employer is required to make the contributions while the employee’s participation is optional. Under a qualified plan, tax...
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...PepsiCo and Coca-Cola Enterprises Meredith Morrison Strayer University BUS 508 [ December 15, 2010 ] Dr. Ronald Steffel Investors, always looking for the next company they can trust, are hoping to put their money into the hopes that they are achieving growth for the company and their bank accounts. In order to make proper and informed decisions they must understand the financial information reported by companies. This report will be looking at two companies, PepsiCo and Coca-Cola and addressing their current ratios. We will discuss the best company to invest in based on the ratios described. Other non-financial elements that may help investors make a decision will also be discussed. Current ratios describe the relationship between the current assets and their liquidity and the current liabilities a company holds (Loth, R., 2010). This ratio is used as a way to evaluate a company’s ability to pay their current debt (their liabilities). In calculating the current ratio, the current assets are divided by the total current liabilities. Another name for the current ratio is Cash ratio. The Cash ratio states the purpose of the ratio; and many investors and lenders look at the current ratio in order to make financial decisions. PepsiCo’s current assets are $12,571, their current liabilities are $8,756, leaving them with a ratio of 1.436 (PepsiCo.,(2009). Coca-Cola’s current assets are $5,170 and their current liabilities are $4,588, leaving them...
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...- Part Seven Desiree’ Pressley September 12, 2015 MBA620: Accounting for Decision Makers Summary of the major capital investments made by PepsiCo and The Coca Cola Company In 2014, purchases of investments for The Coca Cola Company were $17,800 million and proceeds from disposals of investments were $12,986 million. This activity resulted in a net cash outflow of $4,814 million during 2014. The purchases during the year ended December 31, 2014 include The Coca Cola Company investment in Keurig, partially offset by the net purchases and proceeds of our short-term investments, that were made as part of the Company’s overall cash management strategy. In 2014, the Company’s acquisitions of businesses, equity method investments and nonmarketable securities totaled $389 million, which primarily included a joint investment with one of our bottling partners in a dairy company in Ecuador. None of the Company’s other acquisitions or investments were individually significant. (The Coca Cola Company, 2015) The Coca Cola Company purchases of property, plant and equipment net of disposals for the years ended December 31, 2014 is 2,406 million. In 2014, other investing activities were primarily related to loans to Fairlife, LLC, a value-added dairy joint venture, as well as local investments in Argentina. (The Coca Cola Company, 2015) To meet this growing demand, PepsiCo plans to continue to grow their portfolio of more nutritious products as well as to reduce added sugar, sodium...
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