Financial Statement Analysis Report: Investor Analysis
The purpose of this assignment is to evaluate Coca cola’s profitability from the perspective of an external stakeholder.
Profitability ratios are used by potential investors to asses a company’s productivity and may provide insight into the company’s historical net profit margin.
Utilizing the annual report, refer to the Notes to the Financial Statements and analyze Coca Cola’s financial statements for the last 3 years.
Part 1: External Stakeholder: Investor Ratios
In the Ratios tab of the FSAR Excel Spreadsheet, complete the Investor Ratios section. Calculate the investor ratios.
Address the following analysis questions in the comments section of each ratio:
1. What accounts changed for the period and how did this affect the financial analysis calculation?
2. Why did the account change during the period? Explain what business decisions may have caused the change.
3. How does this change influence the company’s performance?
You will submit the FSAR Excel Spreadsheet with the analyzed data and the for Coca Cola. Please note, to earn full credit on this assignment you must show detailed work in Excel, which includes providing the formulas and comments in the cells, not just the summary value.
APA style is not required, but solid academic writing is expected.
You are not required to submit this part of the assignment to LopesWrite.
Part 2: External Stakeholder Analysis
After completing the calculations and comments in the FSAR Excel Spreadsheet, create a 250-500 word document analyzing the above profitability ratios from the perspective of an investor. Address the following in your response.
1. Evaluate the significant trends you see for Coca Cola’s investor ratios by discussing how the payout of dividends affects retained earnings and whether this may affect financial leverage on Coca Cola’s earnings per share.
2. From the perspective of management, discuss how you think the investor ratios calculated will affect external stakeholders behavior.
You will submit the FSAR Excel Spreadsheet with the analyzed data for Coca Cola’s. Please note, to earn full credit on this assignment the group must show detailed work in Excel, which includes providing the formulas and comments in the cells, not just the summary value.