Tag: FSAR

Why did the account change during the period? Explain what Coca Cola’s decisions may have caused the change.Discuss whether the profitability ratios you calculated support your previous analysis of liquidity and solvency ratios. Include discussion of whether Coca Cola would be considered a good investment.

Financial Statement Analysis Report: Profitability Analysis

The purpose of this assignment is to assess a Coca Cola’s profitability by preparing profitability ratios using data from financial statements.

Profitability ratios are critical for assessing a business’s ability to generate earnings at a given point in time. Profitability ratios are also a good indicator for how well existing assets are being used to generate profit and value for shareholders.

Utilizing the annual report, refer to the Notes to the Financial Statements and analyze Coca Cola’s financial statements for the last 3 years.

Part 1: Profitability Ratios

In the Ratios tab of the FSAR Excel Spreadsheet, complete the Profitability Ratios section. Calculate the profitability ratios.

Address the following analysis questions in the comments section of each ratio:

What accounts changed for the period and how did this affect the Financial Analysis calculation?

Why did the account change during the period? Explain what Coca Cola’s decisions may have caused the change.

How does this change influence the Coca Cola’s performance?

You will submit the FSAR Excel Spreadsheet with the analyzed data for Coca Cola.note, to earn full credit on this assignment you must show detailed work in Excel, which includes providing the formulas and comments in the cells, not just the summary value.

APA style is not required, but solid academic writing is expected.

You are not required to submit this part of the assignment to LopesWrite.

Part 2: Profitability Ratio Analysis

After completing the calculations and comments in the FSAR Excel Spreadsheet, create a 250-500 word document analyzing the above profitability ratios. Address the following in your response.

Assess the significant trends you see for Coca Cola’s profitability by discussing how the net profit margin affects return on assets, and how the depreciation of assets affects the profitability ratios.

Discuss whether the profitability ratios you calculated support your previous analysis of liquidity and solvency ratios. Include discussion of whether Coca Cola would be considered a good investment.

Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.

What accounts changed for the period and how did this affect the financial analysis calculation?Why did the account change during the period? Explain what business decisions may have caused the change.

Financial Statement Analysis Report: Trend Analysis

The purpose of this assignment is to prepare a vertical and horizontal common-size analysis.

Financial statement analysis requires the analyst to utilize calculation tools, such as horizontal, vertical, and ratio analysis. Interpretation of the ratio analysis allows the analyzer to observe changes in revenue over time.

For your assignment, locate and review the last 3 years of the annual report of Coca-Cola. This document is located on the company’s website under Investor Relations. Prepare a vertical and horizontal analysis in the Balance Sheet and Income Statement tabs of the “Financial Statement Report Excel Spreadsheet” (FSAR Excel Spreadsheet) provided.

The spreadsheet will serve as a guideline for completing the assignment, the actual sections or order of reporting from the company’s annual report may vary. Complete only the applicable sections based on the information provided in the company’s annual report.

1. Complete the horizontal analysis column of the prior 3

2. Complete the vertical analysis column for the prior 3

Address in the following questions in the comments section of both the Balance Sheet and Income Statement tabs:

1. What accounts changed for the period and how did this affect the financial analysis calculation?

2. Why did the account change during the period? Explain what business decisions may have caused the change.

3. How does this change influence the company’s performance?

You will submit the FSAR Excel Spreadsheet with the analyzed data for the selected company. To earn full credit on this assignment, you must show detailed work in Excel, which includes providing the formulas and comments in the cells, not just the summary value.

APA style is not required, but solid academic writing is expected.