Coca Cola Liquidity Ratios
This week we look at evaluating the company’s liquidity ratios and comparing them to the industry average. Lenders, creditors and suppliers find liquidity ratios quite useful in deciding whether or not to grant credit.
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. (1 point)
Liquidity 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.(4 points)
20XX 20XX 20XX* Industry Average**
Current Ratio (CA/CL) — — — —
Quick Ratio [(CA-Inventory)/CL] — — — —
–*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 may have difficulty paying its bills on time?