92 for 2009 and 1.33 for 2010. While CCE has a debt to equity ratio of: 1.51 for 2009 and 1.3 for 2010. Coca Cola does have the ability to influence the debt levels of CCE. The way that this can take place is to use Coca Cola's credit line to help the firm raise additional working capital in the public markets. This would cause the debt levels of CCE to increase. Another option is that Coca Cola can purchase CCE and assume a percentage of their debt. A good example of this can be seen with Coca Cola's acquisition of CCE North America. In exchange for increasing their ownership in this segment, there was also an agreement for Coca Cola to take on CCE North America's debt of $7.9 billion. This is significant in showing how Coca Cola has a major influence on CCE's debt levels. ("2010 Annual Report," 2011) How are Coca Cola's financial affected by its relationship with...
The positive effects are that earnings have increased from $6.82 billion (for 2009) to $11.80 billion (for 2010). While the negative effect is that debt has increased for the firm going from $5.05 billion (for 2009) to $14.04 billion (for 2010). The way the financials would change is the total amounts of debt will increase. At the same time, there will be an improvement in the revenues of the firm. This will help to increase their stock price once the organization has been successfully integrated. ("2010 Annual Report," 2011)
COCA-COLA vs. PEPSICO COMPANY Company Financial Comparative Study Coca-Cola Company and Pepsi Incorporation are beverage-producing companies worldwide. Over the years, people have had different opinions and ideas about the two companies, although their products are meant to serve the same purpose. Both plants have sub-plants, although Coca-Cola Company has its sub-plants worldwide. Pepsi Company has managed to set plants in specified regions, which serve as strong hold of the company. Pension plans
The total asset turnover ratio on the other hand indicates that just as is the case with the fixed asset turnover ratio, the Coca-Cola Company has been less effective in the utilization of all its assets in sales generation. The inventory turnover ratio is essentially a measure of the number of times the inventory of a business entity is replaced or sold within a given period of time. In the
Coca-Cola enterprises formulated a formal risk-assessment approach in 2003 that divided their business environment into 5 categories: financial, operational, social, environmental and ethical considerations. In order to better assess the various risks that potentially impact their business in each of these areas, they divided each of these into a further six categories: Reputation and Image, Business and Operations, Political and Regulatory, Market and Financial, Information Technology and Business Process Change, People and Organization. By focusing attention on each
Coca-Cola leads the world's beverage industry with as many as 400 products and has its presence globally in more than 200 countries. In addition to this, Coca-Cola collaborates with some 320 licenses to produce more than 10000 products in 57 countries. Products range from fashion apparel to holiday decorations and even a Coca-Cola Picnic Barbie doll. Every year, licensees sell 50 million licensed Coca-Cola products. Internal Business Environment Core Activities For over 100
Coca-Cola. According to the company's 2012-Year in Review, one of the objectives that the company had coming into 2013 was to improve the strength of its product portfolio. The company wanted to find products where there was untapped potential, and take steps to exploit that potential and improve the overall portfolio strength. To that end, Coca-Cola was able to take an ownership stake in Core Power, which makes protein
Coca-Cola faced a number of different ethical issues. The case outlines some of them. The company had faced charges of racial discrimination at many of its plants, in particular relating to the lack of upward mobility for African-Americans at some of the company's southern plants. The company also faced charges of misrepresenting market tests, manipulating earnings, disrupting long-term contractual agreements with some of its distributors. All of these issues
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