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Coca Cola Income Statement

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Introduction
Coca Cola is considered to be the world’s largest beverage company which offers consumers with a wide variety of refreshment beverages. The company was established in 1886 and has since continued to grow globally. Coca Cola offers over 500 sparkling and still brands of products and offers more than 3,800 choices of beverages worldwide (Coca-Colacompany.com, n.d.).
As one of the world’s most recognized and valuable brands, Coca Cola’s portfolio features over 20 billion dollar brands, 18 of those brands offer reduced to low (or no calorie) options. The company’s range of brands include, Diet Coke, Coca Cola Zero, Fanta, Dasani, Sprite, Powerade, vitaminwater, Del Valle, Gold Peak, and many more. The company provides those brands …show more content…

Income Statement Analysis
The two items analysed from the income statement were the items of Seasonality and Competition. Coca Cola states that their range of non-alcoholic ready to drink beverages are in some ways based on seasonal sales, in which the company sees their highest sales during the second and third calendar quarters.
The company has also stated that their beverages compete in a segment of the commercial beverage industry which tends to be highly competitive and consists of numerous companies that are similar to Coca Cola which compete in multiple geographic areas, or businesses that are mainly regional or local in operations, which means that Coca Cola is competing with on a global scale with both local, regional, and global companies for a share of overall market segmentation (Source: Page 9 from Cocal Cola Financial Statement for …show more content…

Gross profit margin is the indication of the percentage of revenue available within a company to cover operating expenses and other expenditures.
Based on analysis of Coco Cola’s net profit margin, the company’s percentages decreased from the year 2010 to 2011 but increased slightly from the year 2011 to 2012.
By analysing these two items and comparing them versus each other. Coca Cola’s decrease in gross profit margin has continually decreased throughout the years of 2010, 2011 and 2012 but the company’s net profit margin has faced a decrease during the year of 2010 – 2011 but began to increase between the years of 2011 and 2012. Meaning that while the company’s gross profit deteriorates, the company has managed to increase its net profit between the years of 2011 and 2012, as an investor this means that the company is continuously attempting to find new ways to increase net profit but in the process it continues to increase the expenses of selling its

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