Abstract This research considers The Coca-Cola Company from an ...

earned The Coca-Cola Company a place on the Dow Jones Sustainability World Index.
Coca-Cola 5
Positioning Coke among the top 10 percent of the world’s largest 2,500 companies in terms of
advancing sustainable business practices (2009 Annual 10-K Filing, 2010).
The company's recent financial performance has been strong, with third-quarter fiscal
results in 2009 showing a 22 percent gain in net profit despite a 3 percent loss in revenues. This
was accompanied by a 17 percent growth in earnings per share. The company continues to
emphasize its international performance for sodas abroad, while in the United States, it is
emphasizing healthy beverage alternatives as evidenced by its purchase of Glaceau, maker of
Vitamin water and its introduction of the Coke Zero brand in 2008 (2009 Annual 10-K Filing,
2010).
Ratio Analysis
Coca-Cola's current ratio was .94:1 in 2008 and 1.28:1 in 2009, indicating that the
company maintains almost the same amount in its current assets needed to cover its current
liabilities. The fact that the ratio has remained steady and even seen a 25% upturn during this
two-year period is positive. The company's inventory turnover, which indicates how effectively
the company is using its assets, increased from 14.5 in 2008 to more than 15.5 in 2009. This
indicates that the company is becoming slightly more efficient at managing its assets. The
company's total debt to total assets percentage moved downward from 48.5 percent to 47.9
percent during the 2008 to 2009 time period, possibly due to the company's acquisition strategy
during that time. The company's profit margin increased from 18 percent in 2008 to 22 percent
in 2009 (2009 Annual 10-K Filing, 2010). In general, the company's finances are strong, and its
recent financial performance with regard to net income is slightly higher.
Company’s Debt