Business Finance - Economics

Sample Solution

I understand that you need help with an assignment that requires calculating financial ratios for Coca-Cola using their 2021 Annual Report and provided Excel template. Unfortunately, I cannot directly access or process external documents or links due to limitations in my programming. However, I can guide you through the process and provide general information about financial ratios.

Financial Ratio Calculation Steps:

1. Gather Data: Access the relevant sections of Coca-Cola's 2021 Annual Report, specifically the income statement and balance sheet. You can find these within Item 8: Financial Statements and Supplementary Data.
2. Identify Formulas: Each financial ratio has a specific formula that uses corresponding data points from the financial statements. Here are the formulas for the ratios you need to calculate:
   • Current Ratio: Current Assets / Current Liabilities
   • Debt Ratio: Total Debt / Total Assets
   • Debt-to-Equity Ratio: Total Debt / Total Equity
   • Times-Interest-Earned Ratio: EBIT / Interest Expense
   • Profit Margin Ratio: Net Income / Revenue
   • Gross Profit Percentage: Gross Profit / Revenue

Full Answer Section

1. Input Data: Use the provided Excel template or create your own spreadsheet. Input the necessary data points from the Annual Report into the corresponding cells in the formulas.
2. Calculate Ratios: Use the formulas in your spreadsheet to calculate each ratio for 2020. Fill in the empty cells in the template or your spreadsheet with the calculated values.
3. Interpret Results: Analyze the calculated ratios using relevant benchmarks and industry averages. Consider trends over time and potential implications for Coca-Cola's financial health and performance.

Additional Resources:

• Investopedia: https://www.investopedia.com/
• Corporate Finance Institute: https://corporatefinanceinstitute.com/
• The Coca-Cola Company Investor Relations: https://investors.coca-colacompany.com/

Remember, interpreting financial ratios requires context and expertise. While I can provide the formulas and steps, consulting financial professionals or conducting further research is recommended for deeper understanding and analysis.

I hope this guidance helps you complete your assignment!