3. Coca-Cola Co. Bond Performance
| Issuer Name | Symbol | Callable | Sub Product Type | Coupon Rate | Maturity | Price | Yield |
| Coca-Cola Co. | KO.GO | Yes | Corporate Bond | 3.15 | 11/15/2020 | 101.060 | 1.698% |
| Coca Cola Co. | KO.GU | Yes | Corporate Bond | 3.30 | 09/01/2021 | 102.533 | 1.620% |
(Morningstar Bond Center, 2019)
Calculations:
Bonds Last Prices:
KO.GO Bond: 101.060% * 1000 = $1010.60
KO.GU Bond: 102.533% * 1000 = $1025.33
The Annual Coupon Interest Payment:
KO.GO Bond:
Coupon rate: 3.15/100 = .0315
.0315 * 1000 = $31.50
KO.GU Bond:
Coupon rate: 3.30/100 = .0330
.0330 * 1000 = $33.00
The Current Yield of the Bonds:
KO.GO Bond: (1000*0.0315)/(101.060*10) = 0.031169
0.031169 * 100 = 3.12%
KO.GU Bond: (1000*0.0330)/(102.533*10) = 0.032184
0.032184 * 100 = 3.22%
1. If you are an investor who is looking for a bond to invest in, which bond would you choose to invest? Why? Take a look at the balance sheet and income statement of the company. What data or ratios support your decision to buy this bond or not?
2. Being the bond callable, does it change your decision to buy them?
Thanks in advance...
Balance Sheet Items (in %) Cash & Short-Term Investments Accounts Receivable 2009-12 18.93 7.72 4.84 Inventory Other Current Assets 4.57 2010-12 15.55 6.08 3.63 4.34 29.59 20.20 36.90 13.31 100.00 2011-12 17.55 6.15 3 .87 4.31 31.88 18.68 34.60 14.84 100.00 2012-12 19.21 5.52 3.79 6.68 35.19 16.80 31.72 16.28 100.00 Total Current Assets Net PP&E Intangibles Other Long-Term Assets 36.06 19.64 26.36 17.94 100.00 2.93 Total Assets 2.60 2.73 2.29 2013-12 22.51 5 .41 3.64 3.20 3 4.76 16.62 30.66 17.96 100.00 2.15 19.96 0.85 6.97 1.04 30.97 21.33 10.75 63.05 36.95 100.00 Accounts Payable Short-Term Debt Taxes Payable 2014-12 23.55 4.85 3.37 4.07 35.85 15.90 28.66 19.60 100.00 2.28 24.71 0.99 6.14 1 .15 35.27 20.77 10.92 66.97 33.03 100.00 Latest Qtr 14.85 4.98 3.74 2.87 26.44 13.18 30.11 30.26 100.00 14.60 13.41 1.05 - 0.30 29.37 36.29 12.45 2015-12 22.09 4.37 3.22 7.38 37.07 13.95 26.79 2 2.19 100.00 3.11 17.59 0.86 6.10 2.30 29.96 31.60 10.00 71.57 28.43 100.00 2016-12 2 5.44 4.42 3.07 6.05 38.97 12.19 24.21 2 4.63 100.00 3.08 18.40 0.78 5.61 2.59 30.46 34.08 8.99 73.53 26.47 100.00 2017-12 23.52 4.17 3.02 10.86 41.58 9 .33 18.93 30.16 100.00 2.66 19.19 0.88 6 .12 2.78 31.62 36.26 12.26 80.15 19.85 100.00 2018-12 19.18 4.08 3.32 10.22 36.81 9 .89 20.75 32.54 100.00 3.08 22.42 0.85 6.44 3.22 36.02 31.26 11.80 79.07 20.93 100.00 Accrued Liabilities Other Short-Term Liabilities Total Current Liabilities Long-Term Debt Other Long-Term Liabilities Total Liabilities 14.13 0.55 10.90 - 28.51 10.51 9.44 12.91 0.38 9.60 - 25.49 19.34 12.47 57.30 42.70 100.00 18.71 0.45 6.76 1.82 30.47 17.14 12.69 60.30 39.70 100.00 20.83 1.00 6.15 2.15 32.43 17.18 12.18 6 1.78 38.22 100.00 78.10 48.47 51.53 21.90 Total Stockholders' Equity Total Liabilities & Equity 100.00 100.00 Liquidity/Financial Health Current Ratio Quick Ratio Financial Leverage Debt/Equity 2009-12 1.28 0.95 1.96 0.20 2010-12 1.17 0.85 2.35 0.45 2011-12 2012-12 1.051.09 0.78 0.77 2.53 2.63 0.43 0.45 2013-12 1.13 0.90 2.71 0.58 2014-12 1.02 0.81 3.04 0.63 2015-12 1.24 0.89 3.53 1.11 2015-12 1.28 0.98 3.78 1.29 2017-12 1.34 0.90 5.15 1.83 2013-12 1.05 0.66 4 .90 1.49 Latest Qtr 0.92 0.69 4.67 1.71 Financials Revenue USD Mil Gross Margin % Operating Income USD Mil Operating Margin % Net Income USD Mil Earnings Per Share USD Dividends USD Payout Ratio %* Shares Mil - TTM 33,560 61.7 10,376 30.9 7,748 1.81 2009-12 2010-12 2011-12 30,990 35,119 45,542 64.2 63.9 60.9 8,231 8,449 10,154 26.6 24. 1 2 1.8 6,824 11,809 8,572 1.47 2.53 1.85 0.82 0.88 0.94 - 34.8 34.0 4,658 4,667 4,646 - 6.76 7.34 8,186 9,532 9,474 -1,993 -2,215 -2,920 6,193 7,317 6,554 - 1.571.35 3,8303,071 1,214 1.59 2012-12 2013-12 48,017 46,854 60.3 60.7 10,779 10,228 22.4 21.8 9,019 8,584 1.97 1.90 1.02 1.12 51.8 56. 7 4 ,584 4,509 7.34 7 .30 10,645 10,542 -2,780 -2,550 7,365 7,992 1.72 1.79 2,5073,493 2014-12 45,998 61.1 9,708 21.1 7,098 1.60 1.22 6 6.4 4,450 7.66 10,615 -2,406 8,209 1.85 612 Export D Ascending 2015-12 2017-12 2013-12 41,863 35,410 31,856 60.7 52.6 63.1 8,626 9,427 9,781 20.6 26.6 30.7 6 ,527 1,248 6,434 1.49 0 .29 1.50 1.40 1.48 1.56 83.6 140.3 211.0 4,367 4 ,324 4,299 6.08 5.194 .28 8 ,796 7,106 7,627 -2,262 -1,675 -1,347 6,534 5,431 6,280 1.471.41 1.28 7,478 9,351 1,411 2015-12 44,294 60.5 8,728 19.7 7,351 1.67 1.32 82.5 4,405 6.02 10,528 -2,553 7,975 1.94 6,465 Book Value Per Share * USD 77.3 4,310 4.43 9,708 -1,505 3,203 Operating Cash Flow USD Mil Cap Spending USD Mil Free Cash Flow USD Mil Free Cash Flow Per Share * USD Working Capital USD Mil * Indicates calendar year-end data information Balance Sheet Items (in %) Cash & Short-Term Investments Accounts Receivable 2009-12 18.93 7.72 4.84 Inventory Other Current Assets 4.57 2010-12 15.55 6.08 3.63 4.34 29.59 20.20 36.90 13.31 100.00 2011-12 17.55 6.15 3 .87 4.31 31.88 18.68 34.60 14.84 100.00 2012-12 19.21 5.52 3.79 6.68 35.19 16.80 31.72 16.28 100.00 Total Current Assets Net PP&E Intangibles Other Long-Term Assets 36.06 19.64 26.36 17.94 100.00 2.93 Total Assets 2.60 2.73 2.29 2013-12 22.51 5 .41 3.64 3.20 3 4.76 16.62 30.66 17.96 100.00 2.15 19.96 0.85 6.97 1.04 30.97 21.33 10.75 63.05 36.95 100.00 Accounts Payable Short-Term Debt Taxes Payable 2014-12 23.55 4.85 3.37 4.07 35.85 15.90 28.66 19.60 100.00 2.28 24.71 0.99 6.14 1 .15 35.27 20.77 10.92 66.97 33.03 100.00 Latest Qtr 14.85 4.98 3.74 2.87 26.44 13.18 30.11 30.26 100.00 14.60 13.41 1.05 - 0.30 29.37 36.29 12.45 2015-12 22.09 4.37 3.22 7.38 37.07 13.95 26.79 2 2.19 100.00 3.11 17.59 0.86 6.10 2.30 29.96 31.60 10.00 71.57 28.43 100.00 2016-12 2 5.44 4.42 3.07 6.05 38.97 12.19 24.21 2 4.63 100.00 3.08 18.40 0.78 5.61 2.59 30.46 34.08 8.99 73.53 26.47 100.00 2017-12 23.52 4.17 3.02 10.86 41.58 9 .33 18.93 30.16 100.00 2.66 19.19 0.88 6 .12 2.78 31.62 36.26 12.26 80.15 19.85 100.00 2018-12 19.18 4.08 3.32 10.22 36.81 9 .89 20.75 32.54 100.00 3.08 22.42 0.85 6.44 3.22 36.02 31.26 11.80 79.07 20.93 100.00 Accrued Liabilities Other Short-Term Liabilities Total Current Liabilities Long-Term Debt Other Long-Term Liabilities Total Liabilities 14.13 0.55 10.90 - 28.51 10.51 9.44 12.91 0.38 9.60 - 25.49 19.34 12.47 57.30 42.70 100.00 18.71 0.45 6.76 1.82 30.47 17.14 12.69 60.30 39.70 100.00 20.83 1.00 6.15 2.15 32.43 17.18 12.18 6 1.78 38.22 100.00 78.10 48.47 51.53 21.90 Total Stockholders' Equity Total Liabilities & Equity 100.00 100.00 Liquidity/Financial Health Current Ratio Quick Ratio Financial Leverage Debt/Equity 2009-12 1.28 0.95 1.96 0.20 2010-12 1.17 0.85 2.35 0.45 2011-12 2012-12 1.051.09 0.78 0.77 2.53 2.63 0.43 0.45 2013-12 1.13 0.90 2.71 0.58 2014-12 1.02 0.81 3.04 0.63 2015-12 1.24 0.89 3.53 1.11 2015-12 1.28 0.98 3.78 1.29 2017-12 1.34 0.90 5.15 1.83 2013-12 1.05 0.66 4 .90 1.49 Latest Qtr 0.92 0.69 4.67 1.71 Financials Revenue USD Mil Gross Margin % Operating Income USD Mil Operating Margin % Net Income USD Mil Earnings Per Share USD Dividends USD Payout Ratio %* Shares Mil - TTM 33,560 61.7 10,376 30.9 7,748 1.81 2009-12 2010-12 2011-12 30,990 35,119 45,542 64.2 63.9 60.9 8,231 8,449 10,154 26.6 24. 1 2 1.8 6,824 11,809 8,572 1.47 2.53 1.85 0.82 0.88 0.94 - 34.8 34.0 4,658 4,667 4,646 - 6.76 7.34 8,186 9,532 9,474 -1,993 -2,215 -2,920 6,193 7,317 6,554 - 1.571.35 3,8303,071 1,214 1.59 2012-12 2013-12 48,017 46,854 60.3 60.7 10,779 10,228 22.4 21.8 9,019 8,584 1.97 1.90 1.02 1.12 51.8 56. 7 4 ,584 4,509 7.34 7 .30 10,645 10,542 -2,780 -2,550 7,365 7,992 1.72 1.79 2,5073,493 2014-12 45,998 61.1 9,708 21.1 7,098 1.60 1.22 6 6.4 4,450 7.66 10,615 -2,406 8,209 1.85 612 Export D Ascending 2015-12 2017-12 2013-12 41,863 35,410 31,856 60.7 52.6 63.1 8,626 9,427 9,781 20.6 26.6 30.7 6 ,527 1,248 6,434 1.49 0 .29 1.50 1.40 1.48 1.56 83.6 140.3 211.0 4,367 4 ,324 4,299 6.08 5.194 .28 8 ,796 7,106 7,627 -2,262 -1,675 -1,347 6,534 5,431 6,280 1.471.41 1.28 7,478 9,351 1,411 2015-12 44,294 60.5 8,728 19.7 7,351 1.67 1.32 82.5 4,405 6.02 10,528 -2,553 7,975 1.94 6,465 Book Value Per Share * USD 77.3 4,310 4.43 9,708 -1,505 3,203 Operating Cash Flow USD Mil Cap Spending USD Mil Free Cash Flow USD Mil Free Cash Flow Per Share * USD Working Capital USD Mil * Indicates calendar year-end data information
