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Coca-Cola Ratio Analysis Input Worksheet 9/8/2013 Gray cells will be calculated for you. You do not need to enter anything into them. Enter amounts into the yellow cells only. Be sure to enter industry averages for the ratio calculations on the other pages of the spreadsheet. Line Item Inventory Total assets Owners' equity Number of common shares Line Item Current assets Fixed assets Total assets Average total assets Cash and cash equivalents Inventory Average inventory Current liabilities Total liabilities Owners' equity Number of common shares Average number of common shares Average owners' equity Market price per share Operating Cash flow Cash flow per share Dividends paid Total sales Operating expenses Operating income Earnings before interest and taxes Interest expense Net income Beginning of Year Coca-Cola Ratio Analysis Liquidity Ratios Q1 Q2 Q3 Q4 Annual Definition: Current Ratio = Current Assets Current Liabilities Industry Average Variance Quarterly Growth/Decline Quick Ratio = Current Assets - Inventory Current Liabilities Industry Average Variance Quarterly Growth/Decline Current Liabilities Inventory #DIV/0! = $0 $0 $0 #DIV/0! = $0 $0 $0 #DIV/0! Cash and Cash Equivalents Current Liabilities #DIV/0! #DIV/0! #DIV/0! $0 $0 #DIV/0! #DIV/0! #DIV/0! = $0 $0 #DIV/0! = $0 $0 $0 = $0 $0 $0 $0 $0 #DIV/0! $0 $0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! = $0 $0 #DIV/0! = $0 $0 $0 = $0 $0 $0 $0 $0 #DIV/0! $0 $0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! = $0 $0 #DIV/0! = $0 $0 $0 = $0 $0 $0 $0 $0 #DIV/0! $0 $0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! = $0 $0 $0 #DIV/0! = $0 $0 $0 = $0 $0 = $0 $0 = $0 $0 #DIV/0! = $0 $0 #DIV/0! #DIV/0! = $0 $0 #DIV/0! #DIV/0! = $0 $0 #DIV/0! #DIV/0! #DIV/0! = = #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! = $0 $0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! = = #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! = $0 $0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! = = #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Operating Expenses Operating Income = #DIV/0! #DIV/0! #DIV/0! Industry Average Variance Quarterly Growth/Decline Operating Ratio = #DIV/0! #DIV/0! #DIV/0! #DIV/0! Industry Average Variance Quarterly Growth/Decline Industry Average Variance Quarterly Growth/Decline $0 $0 #DIV/0! Net Working Capital = Current Assets - Current Liabilities Ratio Total Assets Cash Ratio = = #DIV/0! Industry Average Variance Quarterly Growth/Decline Current Liabilities to = Inventory Ratio #DIV/0! #DIV/0! #DIV/0! = $0 $0 #DIV/0! #DIV/0! Coca-Cola Ratio Analysis Asset Ratios Q1 Q2 Q3 Q4 Annual Definition: Inventory Turnover Ratio = Total Sales Average Inventory Industry Average Variance Quarter Growth/Decline Fixed Assets Turnover = Ratio Total Sales Fixed Assets Industry Average Variance Quarter Growth/Decline $0 $0 #DIV/0! Total Sales Total Assets #DIV/0! = $0 $0 #DIV/0! #DIV/0! = $0 $0 #DIV/0! = $0 $0 #DIV/0! = $0 $0 $0 $0 #DIV/0! #DIV/0! #DIV/0! = $0 $0 #DIV/0! = $0 $0 #DIV/0! = $0 $0 $0 $0 #DIV/0! #DIV/0! #DIV/0! = $0 $0 #DIV/0! = $0 $0 #DIV/0! = $0 $0 $0 $0 #DIV/0! #DIV/0! #DIV/0! = $0 $0 #DIV/0! = $0 $0 = $0 $0 = $0 $0 #DIV/0! = $0 $0 #DIV/0! #DIV/0! = #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! = #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! = #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Total Assets Owners' Equity #DIV/0! #DIV/0! #DIV/0! #DIV/0! Industry Average Variance Quarter Growth/Decline Asset to Equity Ratio = = #DIV/0! Industry Average Variance Quarter Growth/Decline Total Assets Ratio = #DIV/0! #DIV/0! #DIV/0! = $0 $0 #DIV/0! #DIV/0! Coca-Cola Ratio Analysis Profitability Ratios Q1 Q2 Q3 Q4 Annual Definition: Return on Assets Ratio = Net Income Average Total Assets Industry Average Variance Quarter Growth/Decline Return on Equity Ratio = Net Income Average Owners' Equity Net Income Total Sales Industry Average Variance Quarter Growth/Decline #DIV/0! #DIV/0! Earnings Before Interest and Taxes Total Assets #DIV/0! = $0 $0 #DIV/0! 2.00 #DIV/0! = $0 $0 #DIV/0! = $0 $0 #DIV/0! = $0 $0 $0 $0 #DIV/0! = $0 $0 $0 $0 #DIV/0! 2.00 #DIV/0! #DIV/0! $0 $0 #DIV/0! #DIV/0! = $0 $0 #DIV/0! = $0 $0 $0 $0 #DIV/0! 2.00 #DIV/0! #DIV/0! = $0 $0 #DIV/0! = $0 $0 #DIV/0! = $0 $0 $0 $0 #DIV/0! = $0 $0 $0 $0 #DIV/0! 2.00 #DIV/0! #DIV/0! $0 $0 #DIV/0! = $0 $0 #DIV/0! = $0 $0 = $0 $0 = $0 $0 #DIV/0! = $0 $0 #DIV/0! #DIV/0! = = #DIV/0! #DIV/0! #DIV/0! = #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! = #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! = = #DIV/0! #DIV/0! #DIV/0! #DIV/0! = #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Net Income Average Number of Common Shares #DIV/0! #DIV/0! #DIV/0! #DIV/0! Industry Average Variance Quarter Growth/Decline Earnings per Share Ratio = $0 $0 #DIV/0! Industry Average Variance Quarter Growth/Decline Basic Earnings = Power Ratio = #DIV/0! Industry Average Variance Quarter Growth/Decline Profit Margin Ratio = #DIV/0! #DIV/0! #DIV/0! = $0 $0 #DIV/0! 2.00 #DIV/0! Coca-Cola Ratio Analysis Debt Ratios Q1 Q2 Q3 Q4 Annual Definition: Total Debt Ratio = Total Liabilities Total Assets Industry Average Variance Quarter Growth/Decline Interest Coverage Ratio = Industry Average Variance Quarter Growth/Decline = $0 $0 #DIV/0! Earnings Before Interest and Taxes Interest Expense Industry Average Variance Quarter Growth/Decline Debt/Equity Ratio = #DIV/0! #DIV/0! #DIV/0! #DIV/0! = $0 $0 #DIV/0! #DIV/0! = $0 $0 #DIV/0! Total Liabilities Owners' Equity #DIV/0! #DIV/0! $0 $0 #DIV/0! #DIV/0! #DIV/0! = $0 $0 #DIV/0! #DIV/0! = $0 $0 #DIV/0! #DIV/0! = #DIV/0! #DIV/0! $0 $0 #DIV/0! #DIV/0! #DIV/0! = $0 $0 #DIV/0! #DIV/0! = $0 $0 #DIV/0! #DIV/0! = #DIV/0! #DIV/0! $0 $0 #DIV/0! #DIV/0! #DIV/0! = $0 $0 = $0 $0 = $0 $0 #DIV/0! = $0 $0 #DIV/0! #DIV/0! = #DIV/0! #DIV/0! #DIV/0! = $0 $0 #DIV/0! #DIV/0! Coca-Cola Ratio Analysis Market Ratios Q1 Q2 Q3 Q4 Annual Definition: Earnings per Share = (EPS) Ratio Net Income Average Number of Common Shares Industry Average Variance Quarter Growth/Decline Price to Earnings Ratio = Market Price per Share Earnings per Share Payout Ratio = $0 0 #DIV/0! Market Price per Share Cash Flow per Share #DIV/0! = $0.00 #DIV/0! #DIV/0! #DIV/0! = $0 0 #DIV/0! = $0.00 $0.00 #DIV/0! = $0.00 #DIV/0! $0 $0 #DIV/0! #DIV/0! #DIV/0! = $0 0 #DIV/0! = $0.00 $0.00 #DIV/0! = $0.00 #DIV/0! $0 $0 #DIV/0! #DIV/0! #DIV/0! = $0 0 #DIV/0! = $0.00 $0.00 #DIV/0! = $0.00 #DIV/0! $0 $0 #DIV/0! #DIV/0! #DIV/0! = $0 0 #DIV/0! = $0.00 #DIV/0! = $0.00 $0.00 = $0 $0 #DIV/0! = $0.00 $0.00 #DIV/0! #DIV/0! = #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! = #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! = #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Dividends Paid Net Income #DIV/0! #DIV/0! #DIV/0! #DIV/0! Industry Average Variance Quarter Growth/Decline Industry Average Variance Quarter Growth/Decline = #DIV/0! Industry Average Variance Quarter Growth/Decline Price to Cash Flow = Ratio #DIV/0! #DIV/0! #DIV/0! = $0 $0 #DIV/0! #DIV/0! Part One: Company Selection (Total 3 Points out of 10 points) In this first phase of the research project, your group will provide the following information necessary to begin your research: 1. The name of the publicly traded company you will investigate 2. A brief paragraph (25 - 50 words) describing why you chose that particular company 3. The three sources you will use to research the financial health of the company and its competitors The three parts of the Company Selection assignment are described in detail below. A workspace is also provided so you can submit each part in this document. 1. Publicly Traded Company You may choose a company where you are currently employed, a company where you might seek employment, a company you've read about, or a company that piques your interest. For instance, you may research Starbucks (stock symbol SBUX) because you drink a latte every day, Toyota (TM) because you drive this automobile or Amazon (AMZN) because you are interested in their electronic reading experience, the Kindle. Type the name of the company you will research in the box below. Include the stock symbol for the company as in the examples above. Include the name of the major stock exchange on which the stock is primarily traded. 2. Reasons for selecting this company. Write a brief paragraph (25 - 50 words) describing why you chose that particular company in the box below. The box will expand as you type. 3. Research Sources List the three sources you will use to research the financial health of your selected company and its competitors. Look for sources of free data, such as Yahoo Finance and MSN Money for the financial highlights and trading information. You will be using the data from these sites to compute the ratios for the four most recent quarters of your chosen company, computations that you will include in your final project. You may also find this data on the company web site or as part of the annual report. Note the market stock price should be obtained for the last trading day in each quarter. List the sources in the box below. Submit Part One as a group in your Virtual Room. Part Two: Analysis (Total 7 Points out of 10 points) In this second phase of the research project, you will provide the following information necessary to begin your research. Use the Excel spreadsheet posted in the Content section of Blackboard to input quarterly financial data for your chosen company. Quarter 4 should correspond to the most recent yearend data for the company as is produced in the company's 10K report. Produce a report which includes an analysis of the financial position of the company. Create your report as a Word document by copying the Excel spreadsheet into the document. This report will include your ratio computations, a financial trend comparison and an industry-performance comparative financial analysis. The report should look as follows: Section A Computations Using the Excel template, compute the ratios for the four most recent quarters of your chosen company. Sources of free data include Yahoo Finance and MSN Money. Research at least three Web sites to obtain the most accurate and reliable information. By using at least three sources, you will be able to select the financial information from two of the sources with the most closely corresponding information. Section B Financial Trend Comparison For each of the five ratio categories: Liquidity, Asset Utilization, Profitability, Debt Utilization, and Market Values, write a paragraph regarding the trend and implications about the future financial health of the company. You do not have to address every single category, just enough to determine the overall trend. Section C Comparative Financial Analysis of the company compared to the industry performance. Write a paragraph regarding your company's comparative performance to the industry average (or its closest competition for the most recent year. You do not have to address every single category, just enough to determine the overall situation. Section D: Graphical Analysis Describe the financial trend and comparative financial analysis graphically. Be creative here, a picture is worth a thousand words! Under each chart write one sentence summarizing the financial trend and comparative analysis from above. Section E Business ethics, as defined by Corporate Finance (2009) text authors' Ehrhardt and Brigham, \"are a company's attitude and conduct toward its employees, customers, community, and stockholders\" (p.7). Provide an analysis of the ethics of your company that answers the following questions: Is there a well-defined code of ethics or code of conduct? Is there evidence of continued and repeated emphasis by the Board of Directors or the CEO, of the importance of ethical conduct to the corporation and its business ventures? What processes are in place (if any) that make it safe and easy for employees or other interested parties to report ethical lapse? Include documentation from your research that supports your analysis of the ethics of your company. FIN 6406 Corporate Finance 5 Part Three (AKA Section F): Individual Report Conclusion and Decisions (Total 5 Points out of 10 points) Based on the analyses above, arrive at an investment conclusion by writing a paragraph for each of the following three decisions. You must support your conclusions with reasoned logical statements as to why or why not. Note, your decisions should reflect your own personal situation, in other words you should \"Know your client\