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Calculate the following ratios. Using the data from coca cola 10-k report filed with the SEC. Below are the data needed to complete this task (see attachment).

Profitability ratios:
1. Profit Margin
2. Return on assets( investment)
3. Return on equity

Asset Utilization Ratios
4. Receivable turnover
5. Inventory turnover
6. Total assets turnover

Liquidity Ratios:
7. Current ratio
8. Quick ratio
9. Cash ratio

Debt Utilization Ratios
10. Total debt ratio
11. Debt equity ratio
12. Equity multiplier
13. Times interest earned ratio
14. Cash coverage ratio

Stock ratios as of previous fiscal year-end:
15. Earnings per share
16. Price earnings ratio
17. Dividend payout ratio
18. Book value per share

1. If you were the credit manager for one of their suppliers would you extend short-term credit and why?
2. If you were a portfolio manager and you owned this stock in your portfolio make a recommendation to either buy hold or sell the shares of stock in the company. Explain your rationale.


Solution Preview

See attached.

For extending short term credit to the company, bank needs to look at liquidity ratios. Coca Cola has current ratio of more than 1 which indicates that it has sufficient current assets to ...

Solution Summary

The solution examines calculating ratios for Coca Cola 10-K report.