Need Finance 515 assignment done

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Business Finance

Description

As the new financial manager of your company, the CEO has asked your team to provide a brief analysis of the company’s performance to present at the upcoming board of directors meeting. The CEO has asked that you assess the company’s performance against your company’s industry. Thus, to do this, you will need to use ratio analysis or other techniques to determine areas in which the company is doing well, as well as areas that management should look at. The Company being used is Coca Cola

  • Go to the website for your company and download the 10-K report for the most recent year. 1. Perform your ratio analysis on your company: a. A good place to start would be to perform a complete DuPont analysis of the company. The DuPont analysis might provide guidance as to what particular areas of the company should be examined next and what ratios should be calculated. Be sure to include ratios that cover the following areas: i. Profitability ii. Debt Management iii. Liquidity iv. Asset Management v. Market Value b. In addition to the DuPont analysis ratios, be sure to present and discuss at least six relevant ratios that your team feels may best assess the company’s performance. c. Using an online database, such as bizstats.com or a similar database, capture the ratio averages for your company’s industry to evaluate your company’s performance. Provide an analysis that compares your company’s ratios to the industry standards. There is no need to explain the purpose of the ratios. Rather, be sure to provide an interpretation of the results. This may entail some research from news sources on the company’s recent performance. b. Prepare a PowerPoint presentation that summarizes the comparison of your company’s ratios against the industry ratios, as well as your analysis. APA standards are to be followed for all portions of this presentation, including but not limited to proper references and citations.

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Explanation & Answer

Attached.

DuPont Financial
Analysis

Industry Financial Ratios Benchmarks











Food services and drinking places (Asset Class: All)
Corp Average Financial Ratios 2013
Return on Sales 7.23%
Return on Assets 13.01%
Return on Net Worth
36.27%
Quick Ratio 67.24
Current Ratio
93.35
Inventory Turnover
6,512.05
Assets: Sales
55.58
Tot Liabilities: Net Worth 278.75

Gross Profit Margin
• Gross Profit Margin: 60.53 %
• Operating Margin: 19.70 %
• Net Profit Margin: 16.63 %
• Net Sales: $44,294.00
• Cost of goods sold: $17,482.00
• Gross Profit: $26,812.00
• Operating Income: 8,728.00

Coca-Cola Company
Gross Profit Margin
70.00%
60.00%

Gross Profit
Margin, 60.53%

50.00%
40.00%

30.00%
20.00%

Operating
Margin, 19.70%

10.00%
0.00%
Gross Profit Margin

Net Profit
Margin, 16.63%

Asset Turnover Ratio
• Inventory Turnover Ratio: 6.80
• Days in Inventory: 53.67 days
• Cost of Goods Sold: $17,482.00
• Beginning Inventory balance:
$2,239.00

4.5

Inventory
Turnover
Ratio, 4.3

Coca-Cola Company
Assets Turnover Ratio

Cost of Goods,
3.5

4
3.5
3

Days in
Inventory, 2.5

2.5
2
1.5
1
0.5
0
Coca-Cola Company

Beginning
Inventory
Balance, 4.5

Return on Assets (ROA)
• Return on Assets: 3.28
• Net Income: 2,951.00
• Average Total Assets: 90...


Anonymous
Just what I was looking for! Super helpful.

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