Financial Analysis, Management and Entrepreneurship (FAME)

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Surname        : MOHAMED-EDDAFLE

First name        : ED-DAFLE

Programme        : MBA

ID                :LM0026NKENKE0216

Module        :Financial Analysis, Management and Entrepreneurship (FAME)

LECTURE        :Dr Robert Suban

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1. Introduction

If the analysis of the absolute values ​​recorded the company's summary statements (balance sheet, CPC) is certainly interesting; it must be recognized that it is not sufficient because it must be accompanied by an analysis of relative values.

This is, indeed, to bring consistent accounting data to generate meaningful reports, known under the name of financial ratios.

 Ratios can be defined as a relationship between two coherent accounting magnitudes that can be stock or flow or both.

To the extent that there is an abundant amount of accounting information, we can create an unlimited number of ratios; however, for a ratio to be useful it must be significant:

 Answering a definite goal (solvency, profitability, financial stability ...).

 Bringing two coherent values ​​(expressed in gross terms, net, VAT, tax ...).

 Must allow comparison over time (changes in time ratios for the same company) and in space (by reporting its competitors).

The motivation behind why supervisors utilize the proportion examination is on account of it makes enquiries about the monetary soundness of the organization by taking a gander at various proportions, for example, liquidity ratios, and help them to choose and evaluate whether the business is productive or not by taking a gander at its offer costs. In this report, we are going to see whether is it great to put cash in COCA-COLA Company by taking a gander at its monetary position and contrast it and organizations that are working in same part. In addition, this report will shows the cost per offer which financial specialists will pay in the organization and what are the elements that ought to be concerned of when making soft drinks business.

1. Interpretation of Coca-Cola in 2012-2013-2014:

Before we go into profound subtle elements of looking at the execution of the organization between the past and what's to come we should take brief presentation of the COCA-COLA Company.

Coca-Cola Company is an American company specializing in soft drinks. This is one of the largest US companies whose fame and popularity is worldwide. It is, in 2012, the 3rd World food company in terms of revenue, behind PepsiCo and Nestlé. Its headquarters is located in Atlanta, Georgia, in the south - eastern United States, and its CEO is Muhtar Kent. She is best known for its flagship Coca- Cola. Since the end of World War II, the original drink is in the collective imagination, a symbol of Americanism

1. Table: revenue and cost of sales:

Revenue of coca-cola company has dropped down from 2012 to 2014 by 2O19B which refer to loss of the affectivenance of maintaining the profitability of the organisation. Looking at the comparison of coca-cola’s performance there was not better control of the assets that are manage by receivables and cash. Moreover it can be seen that the company could manage its cost of sale by reducing the expanses true out the period from 2012 to 2014.

1. Table: Gross profit and net profit:

From the table below it can be mentioned that coca-colas net profit has changed from 10779 to 9708 between 2012 and 2014 this explain that the company had higher cost and expenses which have created an impact of coca-colas profit additionally, the gross profit of the organisation has slightly decreased which refer to the loss on both revenue and cost of sales of the company. By looking at the gross profit it can be obvious to understand the profitability and the loss that the company has made during that period.

1. Interpretation of PepsiCo in 2012-2013-2013:

PepsiCo is a US multinational that represents considerable authority in the sustenance business. She is especially known SES drinks, not Pepsi - Cola, and its items snacks. The UN His endless concurrent is the Coca-Cola Company.

PepsiCo is in 2012 the Second World nourishment organization and the primary sustenance organization in North America by child Revenues ($ 65.5 billion) and the fifth by net benefit (6.46 billion dollars) after Nestlé (US and Canada), Coca-Cola Co., Anheuser-Busch InBev and Sunkist Growers. The company in 2010 employed about 285 000 people in the world.

1. Table: Revenue and cost of sales:

It can be explained that PepsiCo made good profit during the period of 3 years which come from the slight increase of the revenue in that period. Furthermore due to this incline the company did positively control its assets. It can be possible that PepsiCo did not have higher expanses between 2012 and 2014 that’s why we can see that the cost of sales declined during this period. This also can be explaining that the company’s management did minimize the cost from 31291 to 30884.

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