Financial statement analysis and common stock valuation

Analysis of Geographic Areas

Coca-Cola Co. operates in 2 regions: United States and International.

• Area Asset Turnover
• Net operating revenues
• Property, plant and equipment, net

Analysis of Liquidity Ratios
Quarterly Data

Measures the adequacy of a Coca-Cola Co. cash resources to meet its near-term cash obligations.

• Liquidity Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio

Common-Size Income Statement

Income statement components (revenues and expenses) shown as percentage of total sales.

Balance Sheet: Liabilities and Stockholders’ Equity

The liabilities and stockholders’ equity reports major classes and amounts of external claims on assets and owners’ capital contributions, and other internally generated sources of capital.

Cash Flow Statement

The cash flow statement provides information about Coca-Cola Co. cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on Coca-Cola Co. balance sheet.

Analysis of Liquidity Ratios

Measures the adequacy of Coca-Cola Co. cash resources to meet its near-term cash obligations.

• Liquidity Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio

Enterprise Value (EV)

Enterprise value is total company value (the market value of common equity, debt, and preferred equity) minus the value of cash and short-term investments.

• Current EV
• Historical EV

Enterprise Value to FCFF (EV/FCFF)

Free cash flow to the firm is the cash flow available to the Coca-Cola Co. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.

• Free Cash Flow to The Firm (FCFF)
• Interest Paid, Net of Tax
• EV to FCFF Ratio, Current
• EV to FCFF Ratio, Historical

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

An approach to decomposing Coca-Cola Co. return on equity, return on assets, and net profit margin ratio as the product of other financial ratios.

• Two-Component Disaggregation of ROE
• Three-Component Disaggregation of ROE
• Five-Component Disaggregation of ROE
• Two-Component Disaggregation of ROA
• Four-Component Disaggregation of ROA
• Disaggregation of Net Profit Margin

Balance Sheet: Assets
Quarterly Data

The assets reports major classes and amounts of resources owned or controlled by Coca-Cola Co..

Dividend Discount Model (DDM)

The dividend discount model (DDM) is a technique for estimating the value of a share of Coca-Cola Co. common stock issue as the present value of all future dividends.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• Dividend Growth Rate (g)

Aggregate Accruals

Financial reporting quality relates to the accuracy with which Coca-Cola Co. reported financial statements reflect its operating performance and to their usefulness for forecasting future cash flows.
Aggregate accruals deriving measures of the accrual component of Coca-Cola Co. earnings.

• Balance-Sheet-Based Accruals Ratio
• Cash-Flow-Statement-Based Accruals Ratio