Financial Analysis and Market Analysis of Coca-Cola

Abstract

Coca-Cola company's main themes have been intertwined with social issues such as environmental protection and people's preference for low-sugar products. The company tends to analyze some social phenomena and reflect the research results in new products as much as possible. Because of this, consumers have become more trustful of the Coca-Cola brand. Coupled with Coca-Cola's advertising efforts, Coca-Cola has become a best-selling product in more than 200 countries worldwide. In order to analyze the prospect of Coca-Cola and the potential risks and problems of the company, the article analyzes Coca-Cola's strategy on funding and cash holding and accounting performance based on the company's financial statement. Also, the market valuation, net cash flow, profitability analysis, and SWOT analysis will be done. After a series of analyses, the article's authors found that although Coca-Cola's cash flow has received recessionary effects in recent years, the cash position is still positive from a macro perspective. Meanwhile, the investors need not worry about the company's financial health since the non-current ratio, liquidity, and such indicators point to the company's considerable capacity. Based on the SWOT analysis, the strong brand image helps the company consolidate customer loyalty and enhances market stability. In addition, the authors found that if the company could put more effort into increasing the diversity of its products, more research and innovation would help the appeal of the company's products.