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ANALYSIS OF FINANCIAL RATIOS Dupont model a common method of analyzing the financial ratios has been used to measure the performance and financial condition of the company over the past four years and the information is given in the following table Leverage The return on equity ROE has decreased considerably over the four-year period which indicates that management has failed to bring more wealth to shareholders ROA return on assets has decreased by in last four years the four year period which is probably because the profit margin PM has decreased by 347 over four year period Figures indicated below also suggest that percentage of sales over assets has not increased significantly over these years Leverage Ratios 1996 1997 1998 1999 Return On Assets ROA 2422265121121358 Return On Invest ROI 424392537512717 Return On Equity ROE 5673564842052556 1996 1997 1998 1999 Net Income Margin PM1883218818781228 Fixed Assets Turnover Ratio AT47517508499 Profitability The following ratios indicates the profitability of the companys operations over the years and it indicates the following The year 1999 has been bad for Coca-cola company in terms of Net profits generated by company through operating activities net profit have reduced by this year though the Gross profit have increased over the years and not changed significantly in 1999 Profitability Ratio 1996 1997 1998 1999 Gross Profit Margin 6367681270446966 Operating Profit Margin 21732621262035 Net Profit Margin 1883218818781228 Turnover Ratios 1996 1997 1998 1999 Fixed Assets Turnover Ratio47517508499 Receivables Turnover 1094115111391144 SGA To Sales 404941343654545 Inventory Turnover65163602611 CASH FLOW ANALYSIS Operating Performance The company is showing a healthy performance in cash flows
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