Coca-Cola is a popular brand as the largest company of soft drinks and beverage products. Coca-Cola is the top-seller brand of beverage, and everyone around the world loves Coca-Cola or different kinds of its drinks from the same company. Now, Coca-Cola has been expanded the market for different types of primary water successfully is carbonated drinks, then juice, energy drinks, bottled fresh water, tea and many other types. Coca-Cola understands the need of consumers in order to corporate the business. Coca-Cola reports 3.1% of total beverage products over the world. In 33 brands of non-alcoholic beverage popular in worldwide, Coca-Cola owns fifteen brands. Each day people consume more than one billion products of Coca-Cola every second. .
Coca-cola current ratio in 2012 is 1.09 and is 1.13 in 2013. This shows that Coca-cola can pay its liabilities, according to accounting the higher the ratio, the greater the ability of the firm to pay its bills. Because their current ratio is improving, this proves that Coca-Cola is improving in both their liquidity and efficiency. Its working ratio is $3,493 million during 2012-2013. When current assets exceed current liabilities, working capital is positive. There are greater chances that the company can make payment its liabilities. Even though, Coca-Cola Company has a slightly lower current ratio than the average for its industry. It means that the company has less money tied up in nonproductive assets, such as cash or marketable securities. Or perhaps the inventory holdings are not that large, which is good for the shareholders because more of the companys assets can be used for growing business. But it may not be good enough for the lenders who prefer a high current ratio since it reduce their risk.
Coca-Cola uses debt financing to lower the overall cost of capital, which helps an increased return on shareholders equity. Issuances and payments of debt included both short-term and long-term financing activities.
