Free

Analysis Case: Coca-Cola Company - Essay Example

Add to wishlist

Summary

The company produces and sells more than 500 brands of non-alcoholic beverages. The Coca-Cola Company has several investments; which includes the significant equity method investments.
Significant equity…

Download full paper File format: .doc, available for editing

GRAB THE BEST PAPER97% of users find it useful

Read Text Preview

Subject: Finance & Accounting
Type: Essay
Level: Undergraduate
Pages: 1 (250 words)
Downloads: 3
Author: bradfordmaggio

Extract of sample "Analysis Case: Coca-Cola Company"

Equity Methods Investments Equity Methods Investments The Coca-Cola Company represents the largest beverage company globally. The company produces and sells more than 500 brands of non-alcoholic beverages. The Coca-Cola Company has several investments; which includes the significant equity method investments. Significant equity method investments entail investments in companies that Coca-Cola Company does not control and account for; at either the fair value or the cost method. The equity method enables Coca-Cola to analyze carrying values of investments.

The procedure for applying for equity method investments, by the Coca-Cola Company, entails equity investments at fair value. These are divided into trading securities, and available for sale securities. The realized or unrealized gains or losses on the trading securities or realized gains/losses on the available for sale securities should be included in the net income. The unrealized gains/losses, the net deferred taxes on the, for sale securities are added in the consolidated balance sheets as part of the accumulated other comprehensive income or loss.

Description of equity method application entails several issues. The trading securities are recorded as other assets or marketable securities in the consolidated balance sheets. Available for sale securities are represented as marketable securities or the other investments. This is done in the consolidated balance sheets; depending on duration of time of the investments. The Coca-Cola Company reported an equity income of $602,000,000 at the financial period ending December 31st, 2013. This represents an income decrease of $217,000,000; from the December 31st, 2013 income of $819,000,000.

Coca-Cola FEMSA, S.A.B., de C.V., have a fair value of $7,098,000,000 and a carrying charge of $2,247,000,000. Coca-Cola Amatil Limited has a fair value of $2,359 and a carrying charge of $854,000,000. Coca-Cola HBC AG has a fair value of $2,429,000,000 and a carrying charge of $1,467,000,000. Coca-Cola Bottling Co. Consolidated has a fair value of $182,000,000 and a carrying charge of $85,000,000. The investments in securities that the company is capable of holding at maturity analyzed as amortized costs.

Investments in securities that are not held to maturity are analyzed at fair value.

CHECK THESE SAMPLES OF Analysis Case: Coca-Cola Company

Organizational Strategy

coca-cola company is one of the most successful companies that have laid down some fundamental strategies in order to promote its growth and sustainability.... coca-cola company has worked hard to generate high pricing growth and acquire operating expenses and effectiveness in their strategic plans.... The author assesses the economy of the company, its management strategy and methods, purchasing power, and spending level.... hellip; The Coca Cola company has been one of the organizations that have managed to have a sustainable business....

8 Pages (2000 words) Case Study

Practical Solutions for Crown Cork Seal Company

In the paper “Practical Solutions for Crown Cork Seal company,” the author provides SWOT Analysis as a technique that is used to understand the strengths, weaknesses, opportunities, and threats.... The strength of the Crown Cork Seal company had appointed a leader known as McManus.... John Connell instituted the aspect of accountability through ensuring that its managers took control of all activities of the company in the right way....

3 Pages (750 words) Case Study

Market Shares of PepsiCo, Coca-Cola, Nestle

hellip; In competitor analyses, market shares allow a firm to size up what the strategies of competitors are, and what the company needs to do in order to compete well with major players.... Volume market shares also allow a company to be able to glean where the industry is headed if the company is making progress in increasing shares and profits.... One, it is able to paint a picture of where the industry is, and where the company is versus competitors....

2 Pages (500 words) Case Study

Business Strategy of McDonalds

They implement this strategy by offering their products and tools to the local people who are well aware of the demand of the local market and hence result in the sales growth of the company.... The company carries extensive research on the needs and tastes of the customers and at the same time constantly changes their advertising campaigns.... The main aim of the company is to develop its products in the best possible way and give their customers a great place to socialize, eat and have a great experience....

7 Pages (1750 words) Case Study

Investment report for Apple company

Investing in the stock market is not as difficult as… The key to have success is doing proper research of a company and its financial results.... The annual statement contains lots of information about the performance of the company including its financial statements.... “The company designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players, and sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications” (Investorapple, 2013) The CEO of the company is Timothy Cook....

5 Pages (1250 words) Case Study

Stabilizing Weak Currency

First, the company is able to import the products that it is facing difficulties in producing.... As the result of the 2008 economic downturn, many countries have continued to experience weak currency an aspect that has affected other sectors of the economy.... The devaluation of… Based on the importance of local currencies for example in undertaking local transactions and paying taxes, it is vital for the governments experiencing weak One of the ways through which persistently weak currencies can be stabilized is by use of the preexisting currency....

5 Pages (1250 words) Case Study

The Current and Future use of Internet Technologies for LLoyds TSB

Porters 5 forces analysis is a configuration for business analysis and company policy development.... The study conducts the analysis of the current and future use of Internet Technologies by the Lloyds TSB.... The study analyzes the Lloyds TSB internet business....

6 Pages (1500 words) Case Study

Failing owing to poor marketing strategies

The company enjoys immense profitability owing to the effectiveness of its marketing team.... In 1985 however, the company introduced a new brand of coca-cola.... In an attempt to diversify the taste of the popular drink, the company changed the formula of the new drink.... The company branded the new taste coke as the previous one and introduced it in the market, the same market that liked the taste of the conventional coke....

3 Pages (750 words) Case Study