Ratio Analysis

Using the data from the Coca-Cola 2017 Annual Report financial statements, starting on page 60, calculate the following ratios:

• Common Stockholders Equity Ratio
• Profit Margin Ratio
• Cash Ratio
• Debt to Equity Ratio
• Debt Ratio

Explain how the ratio is calculated and discuss and interpret the ratios that you calculated. Submit a screenshot of the company financial statements as an appendix. The analysis must show all formula calculations to support your results.

Item 8. Financial Statements and Supplementary Data COCA-COLA BOTTLING CO. CONSOLIDATED CONSOLIDATED STATEMENTS OF OPERATIONS $ $ (in thousands, except per share data) Net sales Cost of sales Gross profit Selling, delivery and administrative expenses Income from operations Interest expense, net Other income (expense), net Gain (loss) on exchange transactions Gain on sale of business Bargain purchase gain, net of tax of $1,265 Income before taxes Income tax expense (benefit) Net income Less: Net income attributable to noncontrolling interest Net income attributable to Coca-Cola Bottling Co. Consolidated 2017 4,323,668 2.782.721 1,540,947 1,444,768 96,179 41,869 (4,197) 12.893 Fiscal Year 2016 $ 3,156,428 1,940,706 1,215,722 1,087,863 127,859 36,325 1,870 (692) 2015 2,306,458 1,405,426 901,032 802,888 98,144 28.915 (3,576) 8.807 22,651 2,011 99,122 34,078 65,044 6,042 59,002 63,006 (39,841) 102.847 6,312 96,535 92,712 36,049 56,663 6,517 50,146 S S S Basic net income per share based on net income attributable to Coca- Cola Bottling Co. Consolidated: Common Stock Weighted average number of Common Stock shares outstanding $ $ 5.39 $ 6.35 10.35 7,141 7,141 7,141 S 10.35 $ 5.39 $ 6.35 Class B Common Stock Weighted average number of Class B Common Stock shares outstanding 2,188 2,168 2,147 Diluted net income per share based on net income attributable to Coca- Cola Bottling Co. Consolidated: Common Stock Weighted average number of Common Stock shares outstanding - assuming dilution S 10.30 $ 5.36 $ 6.33 9,369 9,349 9,328 $ 10.29 $ 5.35 $ 6.31 Class B Common Stock Weighted average mber assuming dilution ares outstanding - 2.228 2.208 2.187 See accompanying notes to consolidated financial statements. COCA-COLA BOTTLING CO. CONSOLIDATED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME in thousands) Net income 2017 102,847 Fiscal Year 2016 $ 56,663 2015 65,044 $ (6,225) 18 (4,150) 17 6,624 21 Other comprehensive income (loss), net of tax: Defined benefit plans reclassification including pension costs: Actuarial gain (loss) Prior service costs Postretirement benefits reclassification including benefit costs: Actuarial gain (loss) Prior service costs Adjustment due to the divestiture of the Deep South and Somerset Exchange Business and the Florence and Laurel Distribution Business Foreign currency translation adjustment Other comprehensive income (loss), net of tax 592 (1,935) (4,286) (2,065) 2,934 (2,068) 6,220 25 (1,305) (6 (10,490 (4 7,507 Comprehensive income Less: Comprehensive income attributable to noncontrolling interest Comprehensive income attributable to Coca-Cola Bottling Co. Consolidated 101,542 6,312 95,230 46,173 6,517 39,656 72.551 6,042 66,509 $ $ S See accompanying notes to consolidated financial statements. COCA-COLA BOTTLING CO. CONSOLIDATED CONSOLIDATED BALANCE SHEETS December 31, 2017 January 1, 2017 $ (in thousands, except share data) ASSETS Current Assets: Cash and cash equivalents Accounts receivable, trade Allowance for doubtful accounts Accounts receivable from The Coca-Cola Company Accounts receivable, other Inventories Prepaid expenses and other current assets Total current assets Property, plant and equipment, net Leased property under capital leases, net Other assets Franchise rights Goodwill Distribution agreements, net Customer lists and other identifiable intangible assets, net Total assets 16,902 396,022 (7,606) 65.996 38,960 183,618 100.646 794,538 1,031,388 29,837 116,209 21.850 271.661 (4.448) 67,591 29,770 143,553 63.834 593,811 812,989 33,552 86,091 533,040 144,586 234.988 10.427 2,449,484 169,316 913,352 18,320 3,072,960 $ $ 7,527 116.821 135.155 133.885 60.880 8.221 197,049 171,042 185,530 72.484 5.126 639,452 112,364 118,392 620.579 35.248 1,088,018 2,614,053 3.639 457.907 174.854 126.679 378.572 41,194 907,254 2,086,460 LIABILITIES AND EQUITY Current liabilities: Current portion of obligations under capital leases Accounts payable, trade Accounts payable to The Coca-Cola Company Other accrued liabilities Accrued compensation Accrued interest payable Total current liabilities Deferred income taxes Pension and postretirement benefit obligations Other liabilities Obligations under capital leases Long-term debt Total liabilities Commitments and Contingencies Equity Convertible Preferred Stock, $100.00 par value: authorized - 50,000 shares, issued - none Nonconvertible Preferred Stock, $100.00 par value: authorized - 50,000 shares; issued - none Preferred Stock, S.01 par value: authorized - 20,000,000 shares; issued - none Common Stock, $1.00 par value: authorized - 30,000,000 shares, issued - 10.203.821 shares Class B Common Stock, $1.00 par value: authorized - 10,000,000 shares; issued-2.820,836 and 2,799,816 shares, respectively Class C Common Stock, $1.00 par value: authorized - 20,000,000 shares: issued - none Capital in excess of par value Retained earnings Accumulated other comprehensive loss Treasury stock, at Common Stock - 3,062,374 shares Treasury stock, at cost: Class B Common Stock - 628.114 shares Total equity of Coca-Cola Bottling Co. Consolidated Noncontrolling interest Total equity Total liabilities and equity 10.204 10.204 2,819 2.798 120,417 388,718 (94,202) (60,845) (409) 366,702 92.205 458,907 3,072,960 116,769 301.511 (92.897) (60.84 (409) 277,131 85,893 363,024 2,449,484 See accompanying notes to consolidated financial statements. COCA-COLA BOTTLING CO. CONSOLIDATED CONSOLIDATED STATEMENTS OF CASH FLOWS Fiscal Year 2016 2017 2015 S 102.847 $ 56,663 $ 65,044 150,422 18.419 (58,111) 4.492 111,613 5,010 42,942 2,892 382 692 78,096 2.800 10,408 1.268 148 (8,807) (22,651) (2,011) Impairment of (12,893) (in thousands) Cash Flows from Operating Activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Amortization of intangible assets and deferred proceeds, net Deferred income taxes Loss on sale of property, plant and equipment t of property, plant and equipment (Gain) loss on exchange transactions Gain on sale of business Bargain purchase gain, net of tax of $1,265 Proceeds from bottling agreements conversion es Proceeds from Legacy Facilities Credit Amortization of debt costs Stock compensation expense Fair value adjustment of acquisition related contingent consideration System Transformation Transactions settlements Gain on acquisition of Southeaster Container preferred shares in CCR redistribution Change in current assets less current liabilities (exclusive of acquisitions) Change in other noncurrent assets (exclusive of acquisitions) Change in other noncurrent liabilities (exclusive of acquisitions) - 1.855 7,154 (1,910) 2,011 7,300 3.576 91.450 30,647 1,082 7,922 3.226 (6,996) (6,012) 239 259 (17,916) (1,100) 78 204.969 307,816 (18,262) (39,909) (14,564) (10,850) 25 105.332 161,995 Other (4,292) (6,214) (124) 43.246 108,290 Total adjustments Net cash provided by operating activities $ $ (272.637) (172,586) (71,209) (163,887) (10,498) Cash Flows from Investing Activities: Acquisition of Expansion Territories, net of cash acquired and settlements Additions to property, plant and equipment (exclusive of acquisitions) Net cash paid for exchange transactions Glacau distribution agreement consideration Portion of Legacy Facilities Credit related to Mobile, Alabama facility Proceeds from cold drink equipment Investment in CONA Services LLC Proceeds from the sale of property, plant and equipment Proceeds from the sale of BYB Brands, Inc. Net cash used in investing activities (265,060) (176,601) (19,393) (15,598) 12.364 8.400 (3.615) 608 (7.875) 1,072 1,891 26,360 (217,343) (458,895) (452,026) $ 125.000 $ 349,913 Cash Flows from Financing Activities: Proceeds from issuance of Senior Notes Borrowings under Term Loan Facility Borrowing under Revolving Credit Facility Payments on Revolving Credit Facility Payments on Senior Notes Cash dividends paid Payment of acquisition related contingent consideration Principal payments on capital lease obligations 448,000 (393,000) (9.328) (16,738) (7,485) (318) 146,131 300.000 410,000 (258.000 (164.757) (9.307) (13,550) (7,063) (940 256,383 334.000 (405,000 (100.000) (9.287) (4,039) (6,555) (3.576) 155,456 Other Net cash provided by financing activities S S $ Net increase (decrease) in cash Cash at beginning of year Cash at end of year (4.948) 21.850 16,902 (33,648) 55.498 21,850 46,403 9,095 55.498 See accompanying notes to consolidated financial statements COCA-COLA BOTTLING CO. CONSOLIDATED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY Treasury Total Accumulated Treasury Stock Equity Class B Capital in Other Stock Class B of Coca-Cola (in thousands, except share Common Common Excess of Retained Comprehensive Common Common Bottling Co. Noncontrolling Total data) Stock Stock Par Value Earnings Loss Stock Stock Consolidated Interest Equity Balance on December 28, 2014 $10,204 2,756 $110,860 $210,957 $ (89,914) S(60,845) $ (409) $ 183,609 s 73,334 $256,943 Net income 59,002 59.002 6.042 65.044 Other comprehensive income (loss), net of tax 7,507 7,507 7,507 Cash dividends paid: Common ($1.00 per share) (7,141) (7,141) (7,141) Class B Common ($1.00 per share) (2,146) (2,146) (2,146) Issuance of 20,920 shares of Class B Common Stock 21 2.204 2.225 2.225 Balance on January 3, 2016 $10,204 $ 2,777 $113,064 $ 260,672 $ (82,407) $(60,845) S (409) $ 243,056 $ 79,376 $322,432 Net income 50,146 50,146 6,517 56,663 Other comprehensive income (loss), net of tax (10,490) (10,490) (10,490) Cash dividends paid: Common ($1.00 per share) (7,141) (7,141) (7,141) Class B Common ($1.00 per share) (2,166) (2,166) (2,166) Issuance of 20,920 shares of Class B Common Stock 21 3,705 3,726 3,726 Balance on January 1, 2017 S10,204 $ 2,798 $116,769 $301,511 $ (92,897) S(60,845) S (409) 277,131 S 85,893 $363,024 Net income 96,535 96,535 6,312 102.847 Other comprehensive income (loss), net of tax (1,305) (1,305) (1,305) Cash dividends paid: Common ($1.00 per share) (7,141) (7,141) (7,141) Class B Common ($1.00 per share) (2.187) (2.187) (2.187 Issuance of 21,020 shares of Class B Common Stock 21 3,648 3.669 3.669 Balance on December 31, 2017 $10,204 $ 2,819 $120,417 $388,718 $ (94,202) S(60,845) S (409) $ 366,702 $ 92,205 $458,907 - See accompanying notes to consolidated financial statements