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Bog'liq
00007736, 00006680, 00007321, 00008188, 00008422

2021	2020	2019
2018
Price to earnings (P/E)	27.63	27.91	28.21	30.47
Price to operating profit (P/OP)	26.19	24.03	24.95	22.54
Price to sales (P/S)	6.99	6.55	6.75	6.15

Source: https://www.stock-analysis-on.net/NYSE/Company/Coca-Cola-Co/Valuation/Ratios#PE
The price to earnings ratio indicates the expected price of a share based on its earnings. A decrease of P/E ratio of Coca Cola during four-year period is attributable to a decline in its market value.

Coca Cola`s valuation ratios are interesting in terms of industry averages, even though the company`s growth is not in the line with the industry. We do not take it as red signal because Coca Cola is in the stage of matured development. In addition, the company is considered a going concern since it has enough free cash flow.

Financial Strength Management

	2021	2020	2019	2018
Current Ratio	1.13	1.32	0.76	0.87
Quick Ratio	0.96	1.09	0.63	0.76
Cash Ratio	0.63	0.75	0.41	0.56
Debt to Equity	1.86	2.22	2.25	2.60

Liquidity ratios help to determine a company`s ability to pay off its current liabilities without raising external capital. A current ratio of 1.13 means that Coca Cola .Co, has 1.13 times more current assets than current liabilities. A quick ratio of 1.09 indicates that a company could pay off its current liabilities without selling any long-term assets. A cash ratio of 0.63 means that the company needs more than just its cash reserves to pay off its current debt. A higher debt to equity ratio is risky because it shows that the investors haven`t funded the operations as much as creditors have.

Overall, Coca Cola`s financial strength is interesting and impressive. However, the deterioration of quick ratio and high debt to equity ratio should be taken into consideration. We will measure these in comparison to the industry averages.

Even though Coca Cola`s financial position may seem resilient enough in the balance sheet and income statement, it is not that of impressive in comparison with industry averages. A low current ratio of Coca Cola indicates that the company is exposed to a higher risk of distress or default. At the same time, high debt to equity ratio implies greater financial risk and more leveraged company.

The growth of current ratio from 2019 to 2021 was due to increase in current assets and decrease in current liabilities, however, it is still below from the industry average indicating inferior payment conditions for accounts payable compared to payment conditions for accounts receivable.
M anagement Efficiency and effectiveness

Coca Cola is doing great in terms of earning a return-on-investment assets in comparison with the industry. However, the management is not performing well the way the management of the industry in terms of asset and inventory turnover.

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