Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
61, as opposed to only 28.90, the industry average (Reuters, 2009); this means that the company uses much more debt than equity to finance its operations and that debt reimbursement might constitute for priority in profit distribution
All the above indicate that the largest beverage maker in the world is not as successful as initially believed. Yet, an estimation of the equity futures cannot occur without a look at the company's share. Its value today (September 2, 2009) is of $49.80. In the near past, the KO stock has not suffered major modifications. Yet, its more distant past evolution has been fluctuating. The peak was registered in 2006, when the Coca Cola share was sold for an estimated value of $65; the lowest amount of money paid for it was slightly lower than $40 and it was reached in 2004. The chart below reveals this evolution:
Source: MNS Money, 2009
Based on the past evolutions and the current state of the economy, it is expected that the Coca Cola Company share loses value. As such, in a year's time,...
Purchasing the futures now would materialize in loses for the investors. Given this situation then, it would be best to invest the money in safer placements, such as bank deposits, which offer a 12% interest rate.
References:
2009, the Coca Cola Company, Reuters, http://www.reuters.com/finance/stocks/ratios?symbol=KO.N last accessed on September 3, 2009
2009, Coca Cola Co (KO), MSN Money Central, http://moneycentral.msn.com/investor/charts/chartdl.aspx?D5=0&D4=1&ViewType=0&CP=0&PT=7&CE=0&PeriodType=7&D3=0&Symbol=KO&ShowChtBt=Refresh+Chart&DateRangeForm=1&C9=1&DisplayForm=1&ComparisonsForm=1 last accessed on September 3, 2009
2009, the Coca Cola Company (KO), Yahoo Finance, http://finance.yahoo.com/q?s=ko last accessed on September 3, 2009
The Coca Cola Company 2008 Annual Report, Retrieved from http://www.thecoca-colacompany.com/investors/pdfs/2008_annual_review/2008_annual_review.pdf on September 2, 2009
The total asset turnover ratio on the other hand indicates that just as is the case with the fixed asset turnover ratio, the Coca-Cola Company has been less effective in the utilization of all its assets in sales generation. The inventory turnover ratio is essentially a measure of the number of times the inventory of a business entity is replaced or sold within a given period of time. In the
Coca Cola Company The organization of choice for this paper is the Coca-Cola Company that is operating in beverage industry for more than a century principally manufacturing, distributing, and marketing nonalcoholic beverages globally. It mainly offers sparkling and still beverages. The Coca-Cola Company is a USA-based company, headquartered in Atlanta, Georgia and founded in 1886. Amongst the market leaders in the beverage industry, Coca-Cola Company fights to remain on the top. Keeping
Coca-Cola Company ("Coca-Cola," "Coke") is a U.S.-based manufacturer and distributor of non-alcoholic beverage. The company recorded revenue of $46.5 billion in FY2011, and earned $8.5 billion in net income. According to the company's website, it sells products in over 200 countries, given the company near-global scope. This also ensures that Coca-Cola has substantial exposure to foreign currencies. This report will discuss a number of international financial aspects to Coca-Cola's business,
(About Bottling) The Coca-Cola Company states that the people of its company and the brands that it manufactures are the two secrets for its continued success in the bottled drink-manufacturing sector. The primary goal of the company is to enrich its workplace; it states in its report about the company's workplace, wherein the primary focus is on the needs of the employees. The aim of creating a diverse workforce that
Coca-Cola Company Executive Summary The following are 'snapshots' of current conditions at what is arguably world's largest producer of soft drinks. Strategic planning and development While Coke has been the generic word for 'brown soft drink' for decades, it has lots market share, calling for strategic plans to win it back. In fact, market development is a big feature of Coke's planning this holiday season. To do that, it plans to "spend an
Some examples of how they use these things can be seen in their use of sports in their marketing mix. They sponsor NASCAR, produce innovative Superbowl commercials and were a major corporate sponsor at the Beijing Olympics last summer. They feel that the more they can connect to their customers through these activities they more comfortable those consumers become with their products. Making these kind of connects is a