Presented ByNIMRA TAHIR

Company Profile

• Name: Coca-Cola Co.• Ticker: KO• Exchange: New York Stock Exchange (NYSE)• Number of shares of common stock outstanding:

4,415,922,733 • Industry: Consumer Goods• Country:`United States

Financial Statement12 months ended Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008

Net operating revenues 48,017 46,542 35,119 30,990 31,944Cost of goods sold -19,053 -18,216 -12,693 -11,088 -11,374Gross profit 28,964 28,326 22,426 19,902 20,570Selling, general and administrative expenses -17,738 -17,440 -13,158 -11,358 -11,774Other operating charges -447 -732 -819 -313 -350Operating income 10,779 10,154 8,449 8,231 8,446Interest income 471 483 317 249 333Interest expense -397 -417 -733 -355 -438Equity income (loss), net 819 690 1,025 781 -874Other income (loss), net 137 529 5,185 40 39Income before income taxes 11,809 11,439 14,243 8,946 7,506Income taxes -2,723 -2,805 -2,384 -2,040 -1,632Consolidated net income 9,086 8,634 11,859 6,906 5,874Net income attributable to noncontrolling interests -67 -62 -50 -82 -67Net income attributable to shareowners of The Coca-Cola Company 9,019 8,572 11,809 6,824 5,807Source: Coca-Cola Co., Annual Reports

Financial Statement

Liquidity RatioCoca-Cola Co., liquidity ratios

Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008Current ratio 1.09 1.05 1.17 1.28 0.94Quick ratio 0.77 0.78 0.85 0.95 0.62Cash ratio 0.59 0.58 0.61 0.67 0.38Source: Based on data from Coca-Cola Co. Annual Reports

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Current Ratio Chart

Cash Ratio Chart

Quick Ratio Chart

Liquidity

Marginal Cost• MC = ∆TC• ∆Q• MC = Marginal Cost• ∆TC = Change in Total Cost• ∆Q = Change in Output

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Opportunity Costs • : Opportunity cost is also known as alternative

cost. “The opportunity cost of producing one unit of ‘X’-commodity is the amount of ‘Y’-commodity that must be sacrificed.”

• For example, in an economy two goods X and Y are produced. The quantity of X good is OX and Y good is OY. If the quantity of Y commodity has to increase from OY to YY’, then the quantity of X commodity has increased from OX to OX’.

Sunk Costs• Sunck costs are the historical costs

which are made in past. These costs are irrelevant while making decisions.

ECONOMIC FACTORS• The economic condition of Pakistan has not been

stable for a long time but • The recent economic indicators suggest that the

economy is growing and macroeconomic issues are getting sold but at the same time there has not any marked increase in the consumer buying power (inflation). When the recession occurs the price of bottles are dropped down to increase the sales and to achieve the targets of the company. So overall economy of Pakistan directly affects the cost and price of the Coca-Cola Company

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