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Do the results indicate the business is financially healthy or financially unhealthy? Which results indicate this? What might be the

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Do the results indicate the business is financially healthy or financially unhealthy? 

Which results indicate this? 

 What might be the cause(s) of the business's financial success or failure? 

Is more information needed to determine the business's financial health? If so, which pieces of information might still be needed

 

1Working Capital       
          
   Coca Cola    Pepsi Co    Disney  
  20222021 20222021 20222021
Current Assets       22,591        22,545          21,539      21,783       26,912        32,913 
Less: Current Liabilities       19,724        19,950          26,785      26,220       27,070        30,037 
Working Capital    2,867.00     2,595.00  -    5,246.00 - 4,437.00  -    158.00      2,876.00 
   Increased    Decreased    Decreased  
          
          
2Current Ratio        
          
   Coca Cola    Pepsi Co    Disney  
  20222021 20222021 20222021
Current Assets       22,591        22,545          21,539      21,783       26,912        32,913 
Divided by: Current Liabilities       19,724        19,950          26,785      26,220       27,070        30,037 
Current Ratio           1.15           1.13              0.80         0.83          0.99            1.10 
   Increased    Decreased    Decreased  
          
3Debt Ratio        
   Coca Cola    Pepsi Co    Disney  
  20222021 20222021 20222021
Total Debt        66,937        69,494          66,937      69,494       74,914        76,226 
Divided by: Total Assets       92,763        94,354          74,914      76,226     101,989       109,001 
Debt Ratio 72.2%73.7% 89.4%91.2% 73.5%69.9%
  Decreased  Decreased  Increased 
          
4Earnings Per Share       
   Coca Cola    Pepsi Co    Disney  
  20222021 20222021 20222021
Issued Shares 7,0407,040 1,8671,867 18,00018,000
Less: Treasury Shares-2,712-2,715 -490-484 -19-19
Oustanding Shares4,3284,325 1,3771,383 17,98117,981
          
Net Income         9,571         9,804            8,978        7,679        1,361          1,104 
Divided by: Outstanding Shares        4,328         4,325            1,377        1,383       17,981        17,981 
Earnings Per Share          2.21           2.27              6.52         5.55          0.08            0.06 
   Decreased    Increased    Increased  
          
5Price-earnings ratio or price-earnings ratio      
   Coca Cola    Pepsi Co    Disney  
  20222021 20222021 20222021
          
Market Price         63.61         59.21          180.66      173.71        86.88        154.89 
Divided by: Earnings per share          2.21           2.27              6.52         5.55          0.08            0.06 
Price-to-earnings ratio        28.76         26.12            27.71        31.29    1,147.82      2,522.71 
          
          
6Asset Turnover       
   Coca Cola    Pepsi Co    Disney  
  20222021 20222021 20222021
          
Net Sales        43,004        38,655          86,392      79,474       23,512        21,819 
Divided by: Total Assets       92,763        94,354          74,914      76,226     101,989       109,001 
Asset Turnover          0.46           0.41              1.15         1.04          0.23            0.20 
   Increased    Increased    Increased  
          
7Financial Leverage       
   Coca Cola    Pepsi Co    Disney  
  20222021 20222021 20222021
          
EBT        11,686        12,425          10,705        9,821        1,773          1,688 
Divided by EBIT        9,571         9,804            8,978        7,679        1,361          1,104 
Financial Leverage          1.22           1.27              1.19         1.28          1.30            1.53 
   Decreased    Decreased    Decreased  
          
          
8Net Profit Margin       
   Coca Cola    Pepsi Co    Disney  
  20222021 20222021 20222021
Net Income         9,571         9,804            8,978        7,679        1,361          1,104 
Divided by: Sales       43,004        38,655          86,392      79,474       23,512        21,819 
Net Profit Margin22.3%25.4% 10.4%9.7% 5.8%5.1%
  Decreased  Increased  Increased 
          
          
9Return on Assets (ROA)       
   Coca Cola    Pepsi Co    Disney  
  20222021 20222021 20222021
Net Income         9,571         9,804            8,978        7,679        1,361          1,104 
Divided by: Assets       92,763        94,354          74,914      76,226     101,989       109,001 
Return on Assets10.3%10.4% 12.0%10.1% 1.3%1.0%
          
          
          
10Return on Equity (ROE)       
   Coca Cola    Pepsi Co    Disney  
  20222021 20222021 20222021
          
Net Income         9,571         9,804            8,978        7,679        1,361          1,104 
Divided by: Equity       25,826        24,860          17,273      16,151     100,135        94,310 

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Let s analyze the financial health of the three companies Coca Cola PepsiCo and Disney based on the provided financial ratios and indicators 1 Working View the full answer


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Management Accounting Information for Decision-Making and Strategy Execution

Management Accounting Information for Decision-Making and Strategy Execution

ISBN: 978-0137024971

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Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young

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Question Details
Chapter # 2
Section: Questions
Problem: 53
Posted Date: September 01, 2023 23:12:10
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