Recycling

While reviewing the financial statements for I have analyzed that Coca-Cola increased profitability between 2013 and 2014. Coca Cola was able to increase cash and current assets during their operation cycle. Growing cash on the balance sheet shows a strong signal of Coca Cola’s performance throughout the operating cycle. If Coca-Cola had a dwindling cash amount it could have been a sign that Coca Cola isn’t in good financial standings.

     Analyzing the speed at which Coca Cola collects what it's owed can inform a financial analyst about the financial efficiency of Coca Cola throughout the year. Coca Cola’s liabilities however increased between _________and ______ from _______to ______. Meaning that if Coca Cola collection period is growing longer the company may be letting customers stretch their credit in order to recognize greater top-line sales and if customers face a financial crisis. The quicker a company gets its customers to make payments, the sooner it has cash to pay for salaries, merchandise, equipment, loans, and best of all, dividends and growth opportunities. 

     While reviewing the financial statements for Coca Cola I have also, analyzed that using an indicator of a company’s short-term liquidity can shows Coca Cola’s ability to meet its short-term obligations with its most liquid assets. The quick ratio measures the dollar amount of liquid assets available for each dollar of current liabilities. The quick ratio of .92 means that Coca Cola has $.92 of liquid assets available to cover each $1 of current liabilities in 2014. However, on the 2013 balance sheet the quick ratio of 1.01 means that an Coca Cola has $1.01 of liquid assets available to cover each $1 of current liabilities on the 2013 side of the balance. Meaning that Coca Cola in 2013 was able to meet its short-term obligations with its most liquid assets at a faster past.

     If Coca Cola’s quick ratio is high it means that the company is keeping cash on hand. It could also mean that Coca Cola is having a problem collecting its accounts receivable. Higher quick ratio is sometimes needed when the company has difficulty borrowing on short-term loans. A lower quick ratio for Coca Cola mean that the company relies on their inventory or other assets to pay its short term liabilities and it could put the company in danger in the long run.

In 2014 Coca-Cola increased their debt ratio by 6.1% this helps investors and creditors analysis the overall debt burden on the company as well as the firm's ability to pay off the debt in future.