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The monetary worth of Coca-Cola can be determined utilizing several methodologies: net worth method, the net income method, and the price earning ration method. The
The monetary worth of Coca-Cola can be determined utilizing several methodologies: net worth method, the net income method, and the price earning ration method. The numbers come from given charts and information in the text (David et al, 2019). Net Worth Method Net worth is calculated as the value of a company's assets minus its liabilities. This figure represents the financial worth of the company. The formula for net worth is: Net Worth = Total Assets- Total Liabilities. For the problem provided: - Total Assets = $87,896 - Total Liabilities (Debts) = $68,919 - Net Worth = $18,977 million Net Income Method Net income, also known as net profit, is the amount by which total revenues exceed total expenses. It represents the money a company retains for paying debts, investments, etc. The net income formula is: Net Income = Total Revenue - Total Expenses In the given problem: - Total Revenue = $35,410 - Total Expense (Cost of Sales + Operating Expense + Interest Expense+ Tax) = $13,256+$14,653+$759+$5,560= $34,228 Net Income= $1,182 million Price Earning Ratio Method The price-earning ratio is the relationship between a company's stock price and its earnings per share (EPS), providing investors with a sense of
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