Financial Ratios Analysis of Coca-Cola Amatil
Report
On the
Financial Ratios Analysis of Coca-Cola Amatil
For the period ended 2013 and 2014
Group Members:
Dinesh Raj Panta
Sonita Thomas
Suman Gurung
Spriha Shrestha
Executive Summary
The primary purpose of preparing this report is to analyse the ratios and other useful calculations in the context of the company’s ability to pay current liabilities, ability to sell inventory and collect receivables, ability to pay long-term debt, long-term profitability and investment performance.
For the purpose of analysis, we have chosen Coca-Cola Amatil. We have researched into the latest Annual Report for the period ended 2014 which also includes comparative data for the year 2013.
We have provided the overall assessment of Coca-Cola under five sections:
1. Evaluating the ability to pay current liabilities.
2. Evaluating the ability to sell inventory and collect receivables.
3. Evaluating the ability to pay long-term debt.
4. Evaluating long-term profitability.
5. Evaluating shares as an investment.
Different ratios have been used to analyse the financial health of the company. These ratios are further analysed overtime and compared to one of the Coca Cola Amatil’s biggest competitor, PepsiCo where the comparative data are available easily and readily. However, the discussion and analysis is primarily concerned with the CCA’s own financial figures during 2013 and 2014.
The analysis has addressed the possible causes of changes in ratios, and implications of changes and we have made recommendations on how to increase efficiency and effectiveness of the company accordingly.
Considering the size of the company, it is obvious that its performance in the market is going to affect several stakeholders directly and indirectly. Potential and existing investors and creditors will be highly dependent upon the financial ratios of the company. Their decision is usually based on the financial health and prospect of the company portrayed by these ratios. Besides investors and creditors, government, consumers, etc. are also affected by the performance of the company. So, we have tried our best to give out the fair assessment of the company based on the financial figures extracted from the financial reports.
Company Overview:
(source: company website)
Coca-Cola Amatil (CCA) is one the largest bottlers of non-alcoholic ready-to-drink beverages in the Asia-Pacific region and one of the world’s top five Coca-Cola bottlers. CCA operates in six countries-Australia, New Zealand, Indonesia, Papua New Guinea, Fiji and Samoa. CCA employs 14,900 people across the Group and has access to 270 million consumers through more than 700,000 active customers.
Product portfolio of CCA includes carbonated soft drinks, spring water, sports and energy drinks, fruit juices, iced tea, flavoured milk, tea and SPC Ardmona and Goulburn Valley packaged ready-to-eat fruit and vegetables snacks and products.
CCA produces the Australian market's num...
