Tutor Quora

HC2091 Business Finance

Academic Anxiety?

Get an original paper within hours and nail the task

156 experts online

Free Samples

HC2091 Business Finance

.cms-body-content table{width:100%!important;} #subhidecontent{ position: relative;
overflow-x: auto;
width: 100%;}

HC2091 Business Finance

0 Download10 Pages / 2,366 Words

Course Code: HC2091
University: Holmes Institute

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

You’re a group of investment analysts who work for a large investment consulting fum based in Australia. There’s one big institutional investor from overseas that is interested in investing in the Australian market. You’ve been asked to choose a listed company in Australia (in the industry you think will have the most promising future for investment) then evaluate it and give your client financial advice on whether or not strobe should include the share of that company in her/his investment portfolio. Required:Create your group’s “business name” under which your group will be providing the financial advisory services. Choose one listed company that your group will investigate/analysc for the purposes of possible recommendation to your client. The group should obtain all information about the selected company from this web site: www.asx.com.au.  Obtain a copy of the last two financial years (2015-2016 and 2016-2017) Financial Statements of the chosen company (annual reports are accessible via company websites). Your group can downloaded these documents from the suggested web site using the firm’s code (example. BHP. for BHP Billiton Company. etc.). Your selected company will be evaluated based on the five aspects to determine whether it is fundamentally financial healthy. The five (5) aspects include: liquidity, financial leverage, asset utilization, profitability and market value 

The present study is based on an evaluation of the financial performance of Coca-Cola. Initially, the background of the company is assessed by considering their market, competitive strategies and core competencies. Further, it is followed by computing and interpretation of financial ratios to assess their financial position. Last part of the study analysis share price fluctuations of the company over the years with a graphical presentation for better understanding.
Financial analysis of Coca Cola
Background of the company
Coca-Cola Company is functioning as a foremost soft drink maker and operating in more than 200 states worldwide. Company advertise and sales several sparkling and still drinks, and it’s 60% profits and concerning 80% of its functioning income is produced from outside the United States (Coca-Cola Amatil Limited Annual Report, 2017). The brand is strongly recognized throughout the world. As per the indoors business observers, around 94% of the world population is familiar and known about its logo which is presented in the white and red colour of Coca-Cola.
Their business proceedings begin with their desired objective which is to provide the standard products while considering their performance aligned with the choices of customers.
Customer analysis in the Marketing strategy of Coca-Cola 
The policy of the company is focused on targeting the mass market. Clients are considering various factors while moving towards the products for example; low cost of the product, great flavour, expediency & convenience and diverse alternative to select from (Sinha and Sheth, 2018).
The company is operating in the non-alcoholic beverages market. In this industry, it is always seen that it is an ever-growing business with the higher amount of opportunities. Moreover with the start of rising Asian markets & developing nations the utilization will be higher due to the changing lifestyle and shifts in the choices of the clientele, financial conditions and varying habits of purchasing (Coca-Cola Amatil Limited Annual Report, 2017). Moreover, in such business clients have various choices for example from water, tea, coffee and soft drinks; consequently, there are huge chances for customers to move towards the different brands and products. Therefore, simple methods to differentiate the brand and retain the consumers is to build a strong brand image and generate force for the product in the marketplace.  
Core competencies of the company
The Coca-Cola Company is always known as the originator of refreshing drink brands. Nowadays, our generous collection contains more than 500 brands, for example, sparkling beverages, fruit drinks and squash drinks, water coffee, tea, energy and enhanced hydration drinks and sports drinks and so on (Gardner, McGowan and Susan, 2012). Value-added dairy between such products is 20 that produce more than a billion dollars in yearly retail sales.
An additional core competency is their capability to direct the world’s most complicated structure of independent bottling associated with producing worth for their retail and restaurant clientele (Five Strategic Actions, 2015). From many years company has obtained and directed several Coca-Cola bottling associates, with the objective of getting better performance, optimizing manufacturing and sharing structure, and eventually refranchising the bottling countries back to autonomous position.
In terms of functioning, brand portfolio, cost management, Collaborative customer relationship and, concerted customer association, Coca-Cola has a better competitive edge more than its competitor.
In terms of functioning Coca-cola Company has outsourced the bottling process to the franchise, FEMSA which is the biggest Bottling franchisee of the Coca-Cola brand beverage in the whole world (Dekhil, Jridi and Farhat, 2017). It assists the corporation in measuring significant development opportunity in an immature, non-carbonated drink section and in planned attainment by incoming into agreements to equally obtain corporation with The Coca-Cola Company.
Cost control
Characteristics of a company such as expanded product portfolio, Outsourcing process & economies of scale assist them in lowering down their functioning cost & amplify its productivity.
Strong Brand Portfolio
The company has a strong brand portfolio as it presents a commanding and wide collection of drinks to its clientele, and it endlessly discovers the promising drink collection to capture expansion in the various markets (Kourovskaia and Meenaghan, 2013). In its drinks collection, it includes bottled water, carbonated soft drinks, orangeades, juices, teas, energy drinks, iso-tonics, coffee, milk and even beer in the markets of Brazil.
Factors affecting the performance of the company
Coca-Cola Company should continue the strong financial presentation in the industry for continuing the spending for the upcoming achievement of its business and deliver sufficient investors return.
Coca-cola know how to recognize or perceive the quantity of products sale through the opening of raffles for the variety of products, customers are interested in acquiring the more of this product if they identify that they are tending to win an award for purchasing the product (Sauerbronn, Barros and Faria, 2018). This scheme or approach will positively provide the organisation with an upper edge ahead of their opponents similar to Pepsi.
For fulfilling the consumer’s needs and generating a cost-efficient industry, the company have to perform a robust process. The functioning activities are supervised by a huge range of dimension at an assortment of levels (Brigham and Ehrhardt, 2013). The procedure is being supervised by the number of manufactured goods shaped in diverse plants of the corporation worldwide as well as how many manufactured goods are needed by the marketers.
Coca-Cola had identified that to achieve a high performance the commitment of its employees is needed towards the attainment of the organisation objectives and values (Coca-Cola Amatil Limited Annual Report, 2017). Along with this, those who are willing to make the transformation will definitely advance client services. They hire an all-employee private speak-up investigation to recognise the thoughtfulness. Significant workers views will absolutely assist the corporation to develop strongly.
Ratio Analysis

Liquidity Ratios



Working Capital Ratio






Inventory turnover



In accordance with assertions of Ehiedu, (2014) liquidity ratios can be defined as the group of financial metrics which is utilised to determine the capability of the debtor’s to reimburse current debt obligation without increasing external capital. After calculating the liquidity ratios of Coca-Cola Amatil Company, it can be assessed that the working capital turnover ratio of the year 2017 is less, i.e. 1.52 in comparison to that of the year 2016, i.e. 1.68. The same signifies that the company is not efficiently and its potential for growth has decreased in comparison to the previous year. As the company has a ratio between 1.2 and 2.0 in both the years which is believed to be good working ratio; thus it can be concluded that on an average company has an appropriate short-term asset in order to cover its short-term liabilities. The increasing trend of inventory ratio signifies that the company is effectively managing its inventory.

Efficiency Ratio






Profit Margin






Asset Turnover Ratio



Efficiency ratio signifies the company’s ability to apply its asset and manage liability in an effective manner. A significant increase in profit, i.e. $257.3 million to $461.0 million can be assessed, and same represent that company is efficiently using available resources in an appropriate manner through achieving a higher rate of return (Coca-Cola Amatil Limited Annual Report, 2017). The same is represented in the form of an increase in profit margin. Asset turnover ratio evaluates company revenue generated by deploying its asset for generating revenue. The increase in asset turnover ratio of Coca-Cola Amatil signifies that the company is efficiently deploying its asset for a specified purpose.

Market Value ratios






Book Share price



Market Share Price



P/ B Ration (Market price/ Book value)



A comparison of book value and market value of share represents that whether the value of a share is underpriced or overpriced (Henderson, Peirson and Howieson, 2015). The same assertion assists in making an investment decision in appropriate manner (Narayanaswamy, 2017). From the above specification, it can be concluded that at the end of the year 2016 shares were overvalued the position, however, is not the same at the end of the year 2017. As contradiction exists at the end of each year, thus it appropriate to use other methods of stock valuation in order to remove the discrepancy in options.

Profitability Ratios






Return on Equity 






Return on Assets






Gross Profit






Net  Profit




Financing Ratio






Debt to Equity Ratio






Interest Coverage



Profitability and Financing ration can be referred as a key ratio as one provides detail relating to the performance of the company in financial metrics and other provides detail relating to the ability of the company to pay off its debts (Brigham and Ehrhardt, 2013). Thus, as profit ratio of Coca-Cola Amatil are having enhanced in comparison to the performance of the previous year in term of gross profit, net profit and return of equity. It means that company is incrementing in term of profitability which is beneficial for an investor too. Further, as the company has an effective interest coverage ratio in both the years which signifies that company has sufficient profit to cover its interest expenses. As debt to equity ratio signifies the leverage of a company, i.e. the extent to which it is dependent on finance. It present case it can be concluded that the company is having a satisfactory debt-equity ratio as it is approximately around idol ratio that is 1:1 in both the years.
Valuation of the shares of coca cola Amatil


Share price

June 2014


June 2015


June 2016


June 2017


June 2018


On the basis of the evaluation, it has been seen that the price of the shares of coca cola was very fluctuating. In the year 2014, the price was 9.292, while in the year 2016 the price was 8.531 and in the year 2018 was 9.068 (ASX Coca-Cola, 2018). It means after the downfall suffered in the year 2016, the value of the share again increased. This may be due to the changes in the strategy of the company, which leads to the improvement in the financial performance of the company. However, in the above five years, the company achieved the maximum price of the share in the year 2015, which were 9.430.
The aggressive investor will be attracted towards the investment in the company. Since the prices of the company were fluctuating, therefore, it may be possible that the company through its better strategy can achieve the better result. However, on the other aspect, it may also be possible that the company may not achieve the desired result. The aggressive investor wants to achieve the maximum return by taking the higher risk; therefore they can invest in the company by taking the risk of the fluctuation of the share price of the company. Moreover, the moderate investor and the balance investor will not show the interest in investing in the company, because the risk of the enhancing the share price of the company is very high.
Share valuation
Dividend growth model
Value of share as dividend growth model
.21*1.04/ (9%-4%)
Actual market price
The analysis shows that currently share price is overvalued. Therefore investors should sell the share. The difference in price is due to the consideration of other factors in actual market price such as future project, current profits, change in historical performance etc.
In accordance with the present study, the conclusion can be drawn that Coca-Cola is having the strong brand image all over the world but having fluctuating financial performance. The company is constantly engaged in improvising their overall performance by ensuring innovation and implementation of new technologies by considering the taste and preferences of customers. However, constant fluctuation of share prices makes it aggressive investment option which has the potential of huge return but associated with high risk.
By considering the present study, the company is required to consider the following recommendations:

Product diversification: Company should expand their product portfolio by introducing other beverages such as energy drink, tea and beer to expand their customer base and increase their profits.
Advertising:  Company should increase emphasis on advertisement to attract more customers towards the product. Advertisements must highlight the changes in the product to aware customers.
New designing: Instead of sticking on traditional designs company should modify their designing to be catchy and to encourage customers to provide preference to their brands over the other options available.

By incorporating these recommendations, company will be able to enhance their profits  and stabilise their financial position.
ASX Coca Cola, 2018. [Online]. Available through . [Accessed on 3rd October 2018].
Brigham, E.F and Ehrhardt, M.C., 2013. Financial management: Theory & practice. Cengage Learning.
Brigham, E.F. and Ehrhardt, M.C. 2013. Financial management: Theory & practice. Cengage Learning.
Coca-Cola Amatil Limited Annual Report. 2017. [PDF]. Available through < https://www.ccamatil.com/-/media/Cca/Corporate/Files/Annual-Reports/2018/Annual-Report-2017.ashx>. [Accessed on 3rd October 2018]
Dekhil, F., Jridi, H. and Farhat, H., 2017. Effect of religiosity on the decision to participate in a boycott: The moderating effect of brand loyalty–the case of Coca-Cola. Journal of Islamic Marketing, 8(2), pp.309-328.
Ehiedu, V.C., 2014. The impact of liquidity on the profitability of some selected companies: The financial statement analysis (FSA) approach. Research Journal of Finance and Accounting, 5(5), Pp 81-90.
Five Strategic Actions, 2015. [Online]. Available through . [Accessed on 3rd October 2018].
Gardner, J.C., McGowan, C.B and Susan Jr, E.M., 2012. Valuing Coca-Cola using the free cash flow to equity valuation model. Journal of Business & Economics Research (Online). 10(11). Pp.629
Henderson, S., Peirson, G and Howieson, B., 2015. Issues in financial accounting. Pearson Higher Education AU.
Kourovskaia, A.A and Meenaghan, T., 2013. Assessing the financial impact of sponsorship investment. Psychology & Marketing, 30(5), Pp.417-430.
Narayanaswamy, R., 2017. Financial accounting: a managerial perspective. PHI Learning Pvt. Ltd..
Sauerbronn, F.F., Barros, D.F. and Faria, A., 2018. Coca-Cola and strategic CSR. In The Dark Side 3 (Vol. 55, No. 64, pp. 55-64). ROUTLEDGE in association with GSE Research.
Sinha, M. and Sheth, J., 2018. Growing the pie in emerging markets: Marketing strategies for increasing the ratio of non-users to users. Journal of Business Research, 86, pp.217-22

Free Membership to World’s Largest Sample Bank

To View this & another 50000+ free samples. Please put
your valid email id.


Yes, alert me for offers and important updates


Download Sample Now

Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.

UploadUnique Document

DocumentUnder Evaluation

Get Moneyinto Your Wallet

Total 10 pages


*The content must not be available online or in our existing Database to qualify as

Cite This Work
To export a reference to this article please select a referencing stye below:


My Assignment Help. (2021). Business Finance. Retrieved from https://myassignmenthelp.com/free-samples/hc2091-business-finance/financial-analysis-of-coca-cola.html.

“Business Finance.” My Assignment Help, 2021, https://myassignmenthelp.com/free-samples/hc2091-business-finance/financial-analysis-of-coca-cola.html.

My Assignment Help (2021) Business Finance [Online]. Available from: https://myassignmenthelp.com/free-samples/hc2091-business-finance/financial-analysis-of-coca-cola.html[Accessed 18 December 2021].

My Assignment Help. ‘Business Finance’ (My Assignment Help, 2021) accessed 18 December 2021.

My Assignment Help. Business Finance [Internet]. My Assignment Help. 2021 [cited 18 December 2021]. Available from: https://myassignmenthelp.com/free-samples/hc2091-business-finance/financial-analysis-of-coca-cola.html.

.close{position: absolute;right: 5px;z-index: 999;opacity: 1;color: #ff8b00;}


Thank you for your interest
The respective sample has been mail to your register email id


$20 Credited
successfully in your wallet.
* $5 to be used on order value more than $50. Valid for
only 1

Account created successfully!
We have sent login details on your registered email.



MyAssignmenthelp.com is one of the noted service providers that deliver essay help. We provide tailored essay assistance to make sure that student gets online essay help exactly in the way they want it to be written. We at MyAssigemnthelp.com have built teams of consultants, who readily attend every query related to help me writing my essay. We provide essay writing help in forms of tips and steps in order o assist students with tough essay assignments.

Latest Management Samples

div#loaddata .card img {max-width: 100%;

MPM755 Building Success In Commerce
Download :
0 | Pages :

Course Code: MPM755
University: Deakin University

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

The process of developing a successful business entity requires a multidimensional analysis of several factors that relate to the internal and external environment in commerce. The areas covered in this current unit are essential in transforming the business perspective regarding the key commerce factors such as ethics, technology, culture, entrepreneurship, leadership, culture, and globalization (Nzelibe, 1996; Barza, 2…

SNM660 Evidence Based Practice
Download :
0 | Pages :

Course Code: SNM660
University: The University Of Sheffield

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: United Kingdom

Critical reflection on the objective, design, methodology and outcome of the research undertaken Assessment-I
Smoking and tobacco addiction is one of the few among the most basic general restorative issues, particularly to developed nations such as the UK. It has been represented that among all risk segments smoking is the fourth driving purpose behind infections and other several ailments like asthma, breathing and problems in the l…
Australia Maidstone Management Business management with marketing University of New South Wales Masters in Business Administration 

BSBHRM513 Manage Workforce Planning
Download :
0 | Pages :

Course Code: BSBHRM513
University: Tafe NSW

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

Task 1
1.0 Data on staff turnover and demographics
That includes the staffing information of JKL industries for the fiscal year of 2014-15, it can be said that the company is having problems related to employee turnover. For the role of Senior Manager in Sydney, the organization needs 4 managers; however, one manager is exiting. It will make one empty position which might hurt the decision making process. On the other hand, In Brisba…

MKT2031 Issues In Small Business And Entrepreneurship
Download :
0 | Pages :

Course Code: MKT2031
University: University Of Northampton

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: United Kingdom

Entrepreneurial ventures
Entrepreneurship is the capacity and willingness to develop, manage, and put in order operations of any business venture with an intention to make profits despite the risks that may be involved in such venture. Small and large businesses have a vital role to play in the overall performance of the economy. It is, therefore, necessary to consider the difference between entrepreneurial ventures, individual, and c…
Turkey Istanbul Management University of Employee Masters in Business Administration 

MN506 System Management
Download :
0 | Pages :

Course Code: MN506
University: Melbourne Institute Of Technology

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

An operating system (OS) is defined as a system software that is installed in the systems for the management of the hardware along with the other software resources. Every computer system and mobile device requires an operating system for functioning and execution of operations. There is a great use of mobile devices such as tablets and Smartphones that has increased. One of the widely used and implemented operating syste…
Australia Cheltenham Computer Science Litigation and Dispute Management University of New South Wales Information Technology 


Need an essay written specifically to meet your requirements?

Choose skilled experts on your subject and get an original paper within your deadline

156 experts online

Your time is important. Let us write you an essay from scratch

Tips and Tricks from our Blog

11174 Introduction To Management

Free Samples 11174 Introduction To Management .cms-body-content table{width:100%!important;} #subhidecontent{ position: relative; overflow-x: auto; width: 100%;} 11174 Introduction

Read More »