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Coca-Cola financial statements - Essay Example

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In the paper “Coca-Cola financial statements” the author analyzes the financial status Coca-Cola. This paper will use the company’s full year financial results of the year 2014. Coca-Cola’s largest assets are property, plant and equipment that amount to a net worth of 9,052 million dollars…
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Coca-Cola financial statements
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Coca-Cola Financial ments al Affiliation: Coca-Cola financial ments Coca-Cola Company releases its financial reports on a quarterly and yearly basis (The Coca-Cola Company, 2015). To evaluate the latest financial status Coca-Cola, this paper will use the company’s full year financial results of the year 2014.
The company realized a global volume growth of 2% and their cash operations increased to 10.6 billion dollars (The Coca-Cola Company, 2015). The company’s net operations revenue reduced from 46854 million dollars in 2013 to 45,998 million dollars in 2014. This reflected a 2% reduction in net operations revenue. Net income per share also reduced from $1.94 in 2013 to $1.62 in 2014.
Coca-Cola’s largest assets are property, plant and equipment that amount to a net worth of 9,052 million dollars based on the December 2014 yearly financial reports (The Coca-Cola Company, 2015). Their second largest asset is goodwill that amounted to 12,100million dollars as at December 2014. Their total asset worth is 92,023 million dollars. Based on the 2014 financial reports, the company’s total liabilities amount to 32,374 million dollars while their total equity amounts to 30561 million dollars (The Coca-Cola Company, 2015). At the end of the year, the company’s’ cash and its equivalents amounted to 8,958 million dollars. The company’s largest expenses were on purchase of investments and payments of debts. Purchase of investments amounted to 17800 million dollars while payment of debts amounted to 36,962 million dollars. Despite having many debts and incurring a lot of money on investments, Coca-Cola realized a gross profit of 28,109,000 dollars.
How the financial statements are linked
The income statement described how assets and liabilities were used during the year. The cash flow statement explained how the company got cash and how they spend it, and it gave a figure on the company’s cash at hand
Example 1: The net income calculated in the income statement ($7,098,000) is used as the first item in the cash flow statements ($7,098,000) (NASDAQ, 2015).
Example 2: The retained earnings of the company amounted to 63,408,000 dollars. This figure was equal to a sum of the retained earnings of the year 2013 (61,660,000 dollars) and net income of the year 2014 ($7,098,000) less 2014 dividends (5350000 dollars) (NASDAQ, 2015).
Financial notes
Below most of the financial tables in the financial report, there was a note that stated: “Certain growth rates may not recalculate using the rounded dollar amounts provided.” (NASDAQ, 2015). This note is important since it clarifies that all figures in the financial table above the notes are calculated based on rounded figures. They reinstate that all figures are approximations and thus add value to the financial statement.
Below the Condensed Consolidated Statements of Income there was a financial note that stated “For the years ended Dec 31, 2014 and December 31, 2013, basic net income per share was $1.62 for 2014 and $1.94 for 2013 based on average shares outstanding — basic of 4,387 million for 2014 and 4,434 million for 2013. Basic net income per share and diluted net income per share are calculated based on net income attributable to shareholders of The Coca-Cola Company” (NASDAQ, 2015). This notes relevant since it offers a simple interpretation of all the figures in the table. It also offers a quick comparison of the current and previous financial years. The explanation on how the basic net income and diluted net income per share were calculated is additional information that the reader may not get from the financial report.

References
NASDAQ. (2015, February). Coca-Cola Company (The) (KO) Balance Sheet - NASDAQ.com. Retrieved from http://www.nasdaq.com/symbol/ko/financials?query=balance-sheet
The Coca-Cola Company. (2015, February). The Coca-Cola Company Reports Fourth Quarter And Full-Year 2014 Results. Retrieved from http://assets.coca-colacompany.com/71/d8/cdb028f142de98572dd5a1a65e31/2014-q4-and-full-year-results.pdf
The Coca-Cola Company. (2015, September 22). Coca-Cola Journey Homepage: The Coca-Cola Company. Retrieved from http://www.coca-colacompany.com/ Read More
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