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The Coca-Cola Company provides the following financial information for the year ending December 31, 2023: Net Sales: $10,000,000 Cost of Goods Sold: $6,000,000 Operating Expenses:
The Coca-Cola Company provides the following financial information for the year ending December 31, 2023:
- Net Sales: $10,000,000
- Cost of Goods Sold: $6,000,000
- Operating Expenses: $2,500,000
- Net Income: $1,000,000
- Total Assets: $18,000,000
- Total Liabilities: $9,000,000
- Shareholders' Equity: $9,000,000
Required:
- Calculate the following financial ratios:
- Gross Profit Margin
- Operating Profit Margin
- Net Profit Margin
- Return on Assets (ROA)
- Return on Equity (ROE)
- Analyze the financial health of The Coca-Cola Company based on these ratios.
- Discuss the limitations of financial ratios in assessing the overall performance of a company.
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