Coca Cola Financial Analysis

Coca Cola Financial Analysis

Assignment #1: Coca-Cola Company
Financial Results Analysis: Q3 2012







ACC499/Accounting Capstone
10/21/12
      Coca-Cola Company is a beverage company headquartered in the United States with significant international operations. Operating in over 200 countries worldwide with a product offering of over 500 different products, Coca-Cola Company has come a long way from a small beginning in 1886 (Coca-Cola, History, 2012). Long considered a strong corporate entity by investors and analysts, Coca-Cola recently released 2012 Q3 financial results and business targets on October 16, 2012 as discussed below.
      North American Market Volume Results
      North America is part of the Coca-Cola Americas division which also includes Latin American operations. The United States was the starting market for Coca-Cola Company however the North American sector also includes Canada and Mexico. While North America continues to be a significant factor in all financial transactions and considerations, recent concerns with obesity in the United States has caused sales issues for Coca-Cola Company and is a continuing issue the company needs to address. For this reason as well as general market saturation, North America, while strong, continues to show small to moderate gains in market volume.
      For Q3 2012, North American operations presented an overall growth of 2%.   This metric is the net result of no volume increase for the sparkling (carbonated) beverage section against a 7% gain in still (non-carbonated) beverages.   Growth in the still beverages sector can be attributed to an expanded portfolio of non-carbonated beverages such as packaged water, sports drinks, energy drinks, ready-to-mix tea and coffee as well as juices and juice drinks (Zacks, 2012). With a significant 7% growth in the North American still beverage market, this section continues to drive growth for the Coca-Cola Americas division (Coca-Cola, Earnings, 2012).


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