Perform ratio analysis on your company. You should present them in a similar format as the text: group by category, list name of ratio, formula in words, and the ratio calculation. Give a short explanation of your conclusions about your company after each category of ratios (i.e. How liquid is your company? How efficiently is it using its assets? etc.).

Format Example:

Data:

Ratio Formula Calculation Liquidity and Efficiency Current Ratio Acid-test ratio Accounts receivable turnover Inventory turnover Days' sales uncollected Days' sales in inventory Total asset turnover =Current assets / Current liabilities =Cash +Short-term investments +Current receivables / Current liabilities Net sales / Average accounts receivable, net - Cost of goods sold / Average inventory = Accounts receivable, net / Net sales 365 = Ending inventory/Cost of goods sold 365 = Net sales / Average total assets 3.03 2.19 4.76 times 4.14 times 79.62 days 92.32 days 0.54 times Kraft Foods has low liquidity, with a current ratio of 1 and an acid-test ratio of 0.5, although this is in line with industry standards. Kraft Foods is also not very efficient, with inventory turnover of 7.88 times, which is well below the industry average of 11.15 times, and total asset turnover of.79 times compared to an industry average of 1.76 times. Solvency Debt ratio = Total liabilities/Total assets 0.57 Equity ratio = Total equity/Total assets 0.13 Debt-to-equity ratio = Total liabilities/Total equity 4.26 Times interest earned -Income before interest expense and income taxes / Interest expense 3.90 times Kraft Foods has very high debt and debt-to-equity ratios. Times interest earned of almost four times means that there is not an immediate risk of default, but the company is very highly leveraged, which is risky for investors. Profitability Profit margin ratio = Net income/Net sales 6% Gross margin ratio =Net sales. Cost of goods sold / Net sales 27% Return on total assets = Net income / Average total assets 3% Return on common stockholders' equity -Net income - Preferred dividends / Average common stockholders' equity 22% Book value per common share =Shareholders'equity applicable to common shares/ Number of common shares outstanding $ 7.43 Basic earnings per share = Net income-Preferred dividends / Weighted average common shares outstanding $ 1.76 Kraft Foods has strong profitability. Profit margin of 6% and return on total assets of 5% are both more than double the industry averages of 3.5% and 2%. Return on equity of 22% is significantly stronger than the industry average of 7.9%. [Weighted Average shares outstanding found in 10-K, Note 14] Market Prospects Price-earnings ratio = Market price per common share/ Earnings per share 50.14 times Dividend yleld = Annual cash dividends per share/Market price per share 2.4% Kraft Foods has a high P/E ratio at 50 times earnings, indicating that high growth is expected this is likely because of the merger with Heinz that had been announced by the time Kraft Foods shares stopped trading). A dividend yield of 2.4% is a strong return for investors interested in income. [Dividends per share found on Income Statement] (In millions except per share data) 2019 2018 2017 Year Ended December 31, Net Operating Revenues Cost of goods sold Gross Profit Selling, general and administrative expenses Other operating charges Operating Income Interest income 37,266 $ 14,619 22,647 12,103 458 10,086 563 34,300 $ 13,067 21,233 11,002 1,079 9,152 689 36,212 13,721 22,491 12,834 1,902 7,755 679 Interest expense 946 950 853 Equity income (loss) net Other income (loss) net Income Before Income Taxes 1,049 34 1,008 (1,674) 8,225 1,749 6,476 10,786 1,801 8,985 1,072 (1,763) 6,890 5,607 1,283 35 Income taxes 65 42 Consolidated Net Income Less: Net income (loss) attributable to noncontrolling interests Net Income Attributable to Shareowners of The Coca-Cola Company Basic Net Income Per Sharel $ 8,920 $ 6,434 $ 1,248 $ 2.09 $ 1.51 $ 0.29 Diluted Net Income Per Sharel $ 2.07 $ 1.50 $ 0.29 4,276 Average Shares Outstanding Basic Effect of dilutive securities Average Shares Outstanding Diluted 4,259 40 4,272 52 38 4,314 4,299 4,324 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) 2019 2018 2017 Year Ended December 31, Consolidated Net Income S 8,985 $ 6,476 $ 1,283 74 861 Other comprehensive income: Net foreign currency translation adjustments Net gains (losses) on derivatives Net change in unrealized gains (losses) on available-for-sale securities Net change in pension and other benefit liabilities Total Comprehensive Income Less: Comprehensive income attributable to noncontrolling interests Total Comprehensive Income Attributable to Shareowners of The Coca-Cola Company (433) 188 (2,035) (7) (34) 29 (54) 18 (159) 8,864 110 322 4,429 95 2,221 73 $ 8,754 $ 4,334 $ 2,148 Refer to Notes to Consolidated Financial Statements. CONSOLIDATED BALANCE SHEETS (In millions except par value) December 31, 2019 2018 ASSETS Current Assets Cash and cash equivalents Short-term investments Total Cash, Cash Equivalents and Short-Term Investments Marketable securities Trade accounts receivable, less allowances of $524 and $501, respectively Inventories Prepaid expenses and other assets Total Current Assets Equity method investments Other investments 6,480 $ 1,467 7,947 3,228 3,971 3,379 1,886 20,411 19,025 854 6,075 2,412 10,838 9,266 9,077 2,025 11,102 5,013 3,685 3,071 2,059 24,930 19,412 867 4,148 2,674 9,598 6,682 51 Other assets Deferred income tax assets Property, plant and equipment net Trademarks with indefinite lives Bottlers' franchise rights with indefinite lives Goodwill Other intangible assets Total Assets 109 16,764 14,109 627 745 $ 86,381 $ 83,216 LIABILITIES AND EQUITY Current Liabilities 11,312 $ 10,994 4,253 414 9,533 13,835 5,003 411 26,973 27,516 8,510 2,284 28,782 25,376 7,646 2,354 Accounts payable and accrued expenses Loans and notes payable Current maturities of long-term debt Accrued income taxes Total Current Liabilities Long-term debt Other liabilities Deferred income tax liabilities The Coca-Cola Company Shareowners' Equity Common stock, $0.25 par value; authorized 11,200 shares; issued 7,040 shares Capital surplus Reinvested earnings Accumulated other comprehensive income (loss) Treasury stock, at cost 2,760 and 2,772 shares, respectively Equity Attributable to Shareowners of The Coca-Cola Company Equity attributable to noncontrolling interests Total Equity Total Liabilities and Equity 1,760 17,154 65,855 (13,544) (52,244) 18,981 2,117 1,760 16,520 63,234 (12,814) (51,719) 16,981 2,077 19,058 83,216 21,098 $ 86,381 $ CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) 2019 2018 2017 $ 8,985 $ 1,365 6,476 $ 1,086 1,283 1,260 219 201 225 (280) (421) 91 (467) 127 (413) (457) (50) 743 (1,252) (628) 292 1,459 1,218 (252) 3,442 558 504 Year Ended December 31, Operating Activities Consolidated net income Depreciation and amortization Stock-based compensation expense Deferred income taxes Equity (income) loss net of dividends Foreign currency adjustments Significant (gains) losses net Other operating charges Other items Net change in operating assets and liabilities Net Cash Provided by Operating Activities Investing Activities Purchases of investments Proceeds from disposals of investments Acquisitions of businesses, equity method investments and nonmarketable securities Proceeds from disposals of businesses, equity method investments and nonmarketable securities Purchases of property, plant and equipment Proceeds from disposals of property, plant and equipment Other investing activities Net Cash Provided by (Used in) Investing Activities 699 366 (1,240) 7,627 10,471 7,041 (4,704) 6,973 (5,542) 429 (7,789) 14,977 (1,263) 1,362 (1,548) 248 (60) 5,927 (17,296) 16,694 (3,809) 3,821 (1,750) 108 (80) (2,312) (2,054) 978 (56) (3,976) 23,009 (24,850) 1,012 (1,103) (6,845) (227) (9,004) 27,605 (30,600) 1,476 (1,912) (6,644) (272) (10,347) 29,926 (28,871) 1,595 (3,682) (6,320) (95) (7,447) Financing Activities Issuances of debt Payments of debt Issuances of stock Purchases of stock for treasury Dividends Other financing activities Net Cash Provided by (Used in) Financing Activities Effect of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the year Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at End of Year Less: Restricted cash and restricted cash equivalents at end of year Cash and Cash Equivalents at End of Year (72) (262) 241 (2,581) 9,318 6,737 257 2,945 6,373 9,318 (2,477) 8,850 6,373 271 241 $ 6,480 $ 9,077 $ 6,102 CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY (In millions except per share data) 2019 2018 2017 Year Ended December 31, Equity Attributable to Shareowners of The Coca-Cola Company Number of Common Shares Outstanding Balance at beginning of year Treasury stock issued to employees related to stock-based compensation plans Purchases of stock for treasury Balance at end of year 4,268 4,259 4,288 33 48 53 (82) (21) 4,280 (39) 4,268 4,259 Common Stock $ 1,760 $ 1,760 $ 1,760 16,520 15,864 14,993 655 433 467 201 225 219 (36) 16,520 (3) 15,864 17,154 Capital Surplus Balance at beginning of year Stock issued to employees related to stock-based compensation plans Stock-based compensation expense Other activities Balance at end of year Reinvested Earnings Balance at beginning of year Adoption of accounting standards Net income attributable to shareowners of The Coca-Cola Company Dividends (per share $1.60, $1.50 and $1.48 in 2019, 2018 and 2017, respectively) Balance at end of year 65,502 63,234 546 8,920 (6,845) 65,855 60,430 3,014 6,434 (6,644) 63,234 1,248 (6,320) 60,430 (11,205) (12,814) (564) (166) (13,544) (10,305) (409) (2,100) (12,814) 900 (10,305) Accumulated Other Comprehensive Income (Loss) Balance at beginning of year Adoption of accounting standards Net other comprehensive income (loss) Balance at end of year Treasury Stock Balance at beginning of year Treasury stock issued to employees related to stock-based compensation plans Purchases of stock for treasury Balance at end of year Total Equity Attributable to Shareowners of The Coca-Cola Company Equity Attributable to Noncontrolling Interests Balance at beginning of year Net income attributable to noncontrolling interests Net foreign currency translation adjustments Dividends paid to noncontrolling interests Acquisition of interests held by noncontrolling owners Contributions by noncontrolling interests Business combinations Deconsolidation of certain entities (51,719) 501 (1,026) (52,244) 18,981 $ (50,677) 704 (1,746) (51,719) 16,981 $ (47,988) 909 (3,598) (50,677) 17,072 $ $ 2,077 $ 1,905 $ 158 65 42 35 45 53 38 (31) (15) (48) (84) 3 59 101 1,805 (157) Other activities 7 41 Total Equity Attributable to Noncontrolling Interests $ 2,117 $ 2,077 $ 1,905 Ratio Formula Calculation Liquidity and Efficiency Current Ratio Acid-test ratio Accounts receivable turnover Inventory turnover Days' sales uncollected Days' sales in inventory Total asset turnover =Current assets / Current liabilities =Cash +Short-term investments +Current receivables / Current liabilities Net sales / Average accounts receivable, net - Cost of goods sold / Average inventory = Accounts receivable, net / Net sales 365 = Ending inventory/Cost of goods sold 365 = Net sales / Average total assets 3.03 2.19 4.76 times 4.14 times 79.62 days 92.32 days 0.54 times Kraft Foods has low liquidity, with a current ratio of 1 and an acid-test ratio of 0.5, although this is in line with industry standards. Kraft Foods is also not very efficient, with inventory turnover of 7.88 times, which is well below the industry average of 11.15 times, and total asset turnover of.79 times compared to an industry average of 1.76 times. Solvency Debt ratio = Total liabilities/Total assets 0.57 Equity ratio = Total equity/Total assets 0.13 Debt-to-equity ratio = Total liabilities/Total equity 4.26 Times interest earned -Income before interest expense and income taxes / Interest expense 3.90 times Kraft Foods has very high debt and debt-to-equity ratios. Times interest earned of almost four times means that there is not an immediate risk of default, but the company is very highly leveraged, which is risky for investors. Profitability Profit margin ratio = Net income/Net sales 6% Gross margin ratio =Net sales. Cost of goods sold / Net sales 27% Return on total assets = Net income / Average total assets 3% Return on common stockholders' equity -Net income - Preferred dividends / Average common stockholders' equity 22% Book value per common share =Shareholders'equity applicable to common shares/ Number of common shares outstanding $ 7.43 Basic earnings per share = Net income-Preferred dividends / Weighted average common shares outstanding $ 1.76 Kraft Foods has strong profitability. Profit margin of 6% and return on total assets of 5% are both more than double the industry averages of 3.5% and 2%. Return on equity of 22% is significantly stronger than the industry average of 7.9%. [Weighted Average shares outstanding found in 10-K, Note 14] Market Prospects Price-earnings ratio = Market price per common share/ Earnings per share 50.14 times Dividend yleld = Annual cash dividends per share/Market price per share 2.4% Kraft Foods has a high P/E ratio at 50 times earnings, indicating that high growth is expected this is likely because of the merger with Heinz that had been announced by the time Kraft Foods shares stopped trading). A dividend yield of 2.4% is a strong return for investors interested in income. [Dividends per share found on Income Statement] (In millions except per share data) 2019 2018 2017 Year Ended December 31, Net Operating Revenues Cost of goods sold Gross Profit Selling, general and administrative expenses Other operating charges Operating Income Interest income 37,266 $ 14,619 22,647 12,103 458 10,086 563 34,300 $ 13,067 21,233 11,002 1,079 9,152 689 36,212 13,721 22,491 12,834 1,902 7,755 679 Interest expense 946 950 853 Equity income (loss) net Other income (loss) net Income Before Income Taxes 1,049 34 1,008 (1,674) 8,225 1,749 6,476 10,786 1,801 8,985 1,072 (1,763) 6,890 5,607 1,283 35 Income taxes 65 42 Consolidated Net Income Less: Net income (loss) attributable to noncontrolling interests Net Income Attributable to Shareowners of The Coca-Cola Company Basic Net Income Per Sharel $ 8,920 $ 6,434 $ 1,248 $ 2.09 $ 1.51 $ 0.29 Diluted Net Income Per Sharel $ 2.07 $ 1.50 $ 0.29 4,276 Average Shares Outstanding Basic Effect of dilutive securities Average Shares Outstanding Diluted 4,259 40 4,272 52 38 4,314 4,299 4,324 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) 2019 2018 2017 Year Ended December 31, Consolidated Net Income S 8,985 $ 6,476 $ 1,283 74 861 Other comprehensive income: Net foreign currency translation adjustments Net gains (losses) on derivatives Net change in unrealized gains (losses) on available-for-sale securities Net change in pension and other benefit liabilities Total Comprehensive Income Less: Comprehensive income attributable to noncontrolling interests Total Comprehensive Income Attributable to Shareowners of The Coca-Cola Company (433) 188 (2,035) (7) (34) 29 (54) 18 (159) 8,864 110 322 4,429 95 2,221 73 $ 8,754 $ 4,334 $ 2,148 Refer to Notes to Consolidated Financial Statements. CONSOLIDATED BALANCE SHEETS (In millions except par value) December 31, 2019 2018 ASSETS Current Assets Cash and cash equivalents Short-term investments Total Cash, Cash Equivalents and Short-Term Investments Marketable securities Trade accounts receivable, less allowances of $524 and $501, respectively Inventories Prepaid expenses and other assets Total Current Assets Equity method investments Other investments 6,480 $ 1,467 7,947 3,228 3,971 3,379 1,886 20,411 19,025 854 6,075 2,412 10,838 9,266 9,077 2,025 11,102 5,013 3,685 3,071 2,059 24,930 19,412 867 4,148 2,674 9,598 6,682 51 Other assets Deferred income tax assets Property, plant and equipment net Trademarks with indefinite lives Bottlers' franchise rights with indefinite lives Goodwill Other intangible assets Total Assets 109 16,764 14,109 627 745 $ 86,381 $ 83,216 LIABILITIES AND EQUITY Current Liabilities 11,312 $ 10,994 4,253 414 9,533 13,835 5,003 411 26,973 27,516 8,510 2,284 28,782 25,376 7,646 2,354 Accounts payable and accrued expenses Loans and notes payable Current maturities of long-term debt Accrued income taxes Total Current Liabilities Long-term debt Other liabilities Deferred income tax liabilities The Coca-Cola Company Shareowners' Equity Common stock, $0.25 par value; authorized 11,200 shares; issued 7,040 shares Capital surplus Reinvested earnings Accumulated other comprehensive income (loss) Treasury stock, at cost 2,760 and 2,772 shares, respectively Equity Attributable to Shareowners of The Coca-Cola Company Equity attributable to noncontrolling interests Total Equity Total Liabilities and Equity 1,760 17,154 65,855 (13,544) (52,244) 18,981 2,117 1,760 16,520 63,234 (12,814) (51,719) 16,981 2,077 19,058 83,216 21,098 $ 86,381 $ CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) 2019 2018 2017 $ 8,985 $ 1,365 6,476 $ 1,086 1,283 1,260 219 201 225 (280) (421) 91 (467) 127 (413) (457) (50) 743 (1,252) (628) 292 1,459 1,218 (252) 3,442 558 504 Year Ended December 31, Operating Activities Consolidated net income Depreciation and amortization Stock-based compensation expense Deferred income taxes Equity (income) loss net of dividends Foreign currency adjustments Significant (gains) losses net Other operating charges Other items Net change in operating assets and liabilities Net Cash Provided by Operating Activities Investing Activities Purchases of investments Proceeds from disposals of investments Acquisitions of businesses, equity method investments and nonmarketable securities Proceeds from disposals of businesses, equity method investments and nonmarketable securities Purchases of property, plant and equipment Proceeds from disposals of property, plant and equipment Other investing activities Net Cash Provided by (Used in) Investing Activities 699 366 (1,240) 7,627 10,471 7,041 (4,704) 6,973 (5,542) 429 (7,789) 14,977 (1,263) 1,362 (1,548) 248 (60) 5,927 (17,296) 16,694 (3,809) 3,821 (1,750) 108 (80) (2,312) (2,054) 978 (56) (3,976) 23,009 (24,850) 1,012 (1,103) (6,845) (227) (9,004) 27,605 (30,600) 1,476 (1,912) (6,644) (272) (10,347) 29,926 (28,871) 1,595 (3,682) (6,320) (95) (7,447) Financing Activities Issuances of debt Payments of debt Issuances of stock Purchases of stock for treasury Dividends Other financing activities Net Cash Provided by (Used in) Financing Activities Effect of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the year Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at End of Year Less: Restricted cash and restricted cash equivalents at end of year Cash and Cash Equivalents at End of Year (72) (262) 241 (2,581) 9,318 6,737 257 2,945 6,373 9,318 (2,477) 8,850 6,373 271 241 $ 6,480 $ 9,077 $ 6,102 CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY (In millions except per share data) 2019 2018 2017 Year Ended December 31, Equity Attributable to Shareowners of The Coca-Cola Company Number of Common Shares Outstanding Balance at beginning of year Treasury stock issued to employees related to stock-based compensation plans Purchases of stock for treasury Balance at end of year 4,268 4,259 4,288 33 48 53 (82) (21) 4,280 (39) 4,268 4,259 Common Stock $ 1,760 $ 1,760 $ 1,760 16,520 15,864 14,993 655 433 467 201 225 219 (36) 16,520 (3) 15,864 17,154 Capital Surplus Balance at beginning of year Stock issued to employees related to stock-based compensation plans Stock-based compensation expense Other activities Balance at end of year Reinvested Earnings Balance at beginning of year Adoption of accounting standards Net income attributable to shareowners of The Coca-Cola Company Dividends (per share $1.60, $1.50 and $1.48 in 2019, 2018 and 2017, respectively) Balance at end of year 65,502 63,234 546 8,920 (6,845) 65,855 60,430 3,014 6,434 (6,644) 63,234 1,248 (6,320) 60,430 (11,205) (12,814) (564) (166) (13,544) (10,305) (409) (2,100) (12,814) 900 (10,305) Accumulated Other Comprehensive Income (Loss) Balance at beginning of year Adoption of accounting standards Net other comprehensive income (loss) Balance at end of year Treasury Stock Balance at beginning of year Treasury stock issued to employees related to stock-based compensation plans Purchases of stock for treasury Balance at end of year Total Equity Attributable to Shareowners of The Coca-Cola Company Equity Attributable to Noncontrolling Interests Balance at beginning of year Net income attributable to noncontrolling interests Net foreign currency translation adjustments Dividends paid to noncontrolling interests Acquisition of interests held by noncontrolling owners Contributions by noncontrolling interests Business combinations Deconsolidation of certain entities (51,719) 501 (1,026) (52,244) 18,981 $ (50,677) 704 (1,746) (51,719) 16,981 $ (47,988) 909 (3,598) (50,677) 17,072 $ $ 2,077 $ 1,905 $ 158 65 42 35 45 53 38 (31) (15) (48) (84) 3 59 101 1,805 (157) Other activities 7 41 Total Equity Attributable to Noncontrolling Interests $ 2,117 $ 2,077 $ 1,905