Presented below are summary financial data from the The Coca-Cola Company 2015 annual report. Using the ratio definitions from Exhibit 4.6, calculate the following liquidity and solvency ratios: cash and marketable securities to total assets, quick ratio, current ratio, long-term debt to total assets, longterm debt to shareholders’ equity, and the interest coverage ratio. Evaluate the company’s liquidity and solvency.

Transcribed Image Text:

(amounts in millions) Balance sheet Cash and cash equivalents 2015 2014 $15,631 $18,010 Marketable securities... 4,269 3,665 Accounts receivable (net).. 3,941 4,466 Total current assets 33,395 32,986 Total assets. 90,093 92,023 Current liabilities 26,930 32,374 Current portion of long-term debt 2,677 3,552 Long-term debt 28,407 19,063 Shareholders' equity 25,764 30,561 Income statement Interest expense Net income before taxes 856 $ 483 9,605 9,325