Coca Cola Company’s asset utilization ratios
The focus this week is on evaluating the company’s asset utilization ratios. This category of ratios evaluates how effectively the company is using its investment in assets to generate sales.
Name of Company and Ticker Symbol: Company name, ticker symbol
10-K Report: Paste the direct URL to the company’s most recent 10-K Report
Company Website: Paste the URL to the company’s website
Industry name and NAICS Code: Provide the name and NAICS code associated with the Industry Average data.
Asset Utilization Ratios: Follow the formatting in the example below to present the data. See the sample eStatement Studies document posted under the Activities tab for help in finding the industry average data needed for this assignment.(5 points)
20XX 20XX 20XX** Industry Average***
Inventory Turnover (CGS*/Inv.) ) — — — —
Fixed Asset Turnover (Sales/Net PPE) — — — —
Total Asset Turnover (Sales/Total Assets) — — — —
–*use Cost of Goods sold to make the comparison to the industry average more accurate.
**most recent year
*** list all 3 industry average figures for each ratio
Evaluation: Interpret each of the ratios and review the >Financial Ratios Guidelines document for direction. Do you see any red flags? Does it appear as though the company is making efficient use of its assets to generate sales?