The Coca-Cola Company Research Paper Example | Topics and Well Written Essays - 1250 words

The Coca-Cola Company - Research Paper Example We will be taking a gander at a few sorts of monetary proportions accessible in surveying the budgetary situation of The Coca-Cola Company: Liquidity Ratios, Asset Management Ratios, Profitability Ratios and Gearing Ratios. The quantitative discoveries in this portion can be found in the Appendix segment of this report. The outcomes show that The Coca-Cola Company has a decent Liquidity Ratio. The company’s Current Ratio is 1.12 (0.95 in Q1 2008) and its Quick Ratio is 0.94 (0.80 in Q1 2008). This implies The Coca-Cola Company is as yet ready to produce enough money to settle its transient liabilities. There has been a slight improvement in its Liquidity Ratio contrasted and the past quarter. As a guide, a present proportion of 2 is perfect. Be that as it may, in the company’s case, 46% of its Current Assets (42% in Q1 2008) are comprised of money and money reciprocals. Initially, the company’s resources are being overseen productively. Its Inventory Turnover is 1.13 (1.07 in Q1 2008), which shows that organization is exchanging better. Its inventories declined by 6% in the main quarter of 2009 though its deals expanded by 3% in a similar quarter of 2008. By the by, the organization should observe that over expanding its inventories may antagonistically influence its business execution. This is on the grounds that expenses related with holding inventories for a really long time can be over the top expensive. Accordingly, dealing with its inventories well is suggested. There is a slight improvement in the Average Collection Days of 39 (43 Days in Q1 2008). In spite of the fact that the organization can meet its transient liabilities; it should in any case put forth an attempt to improve the assortment of its obligations. The credit term given to its clients isn't expressed; in any case, as a rule, 30 days is suggested. For this situation, the company’s clients are getting a charge out of marginally more than the ordinary credit terms and this ought to be observed.