The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin improved from 0.24% in 2019 to 6.14% in 2023.
The average EBIT Margin for the period under analysis was 6.018%, with 2019 and 2022 performing the worst and best, respectively.
In the current year, Cocacola was able to cover its interest liabilities 0.00 times in the current year- compared to 2019 when it was 1.59 times.
The Asset turnover stood at 1.64 times in 2023 from 1.55 in 2019, implying a high performance on Assets of the business in relation to revenue.
Profitability
The revenue of Cocacola has increased year on year. The revenue decreased by 3.75% between 2019 and 2020 and a further 11.47% increase was recorded between 2021 and 2022. There also occurred an increase of 7.30% between 2022 and 2023 (the current period).
Cocacola’s performance in profitability looks bad/good as the return on capital employed also recorded bad/good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks strong, as current ratio/acid test decreased from 1.38:1/1.09 to 1.56:1/0.96:1 on the last year. Which implies that the company does not have enough assets to settle its current liabilities.
Capital Structure
Cocacola is both equity and debt financed.
The debt-to-equity (D/E) ratio has been falling year on year. The gearing position of the company appears to be high as it stood at 51% in the current year.
