Financial ratios. This assignment can be very difficult. Start early. You will need the time. This exercise is designed to familiarize you with determining a company's financial strength and weaknesses. Ratios for one period by themselves usually provide little knowledge or are very useful. Only when they are compared over time or with industry or other norms can you determine if a particular ratio shows a strength, weakness, or is neutral. There are two parts to this assignment. You can use the template to help complete the assignment, but do not copy and turn it in.

Part 1. Copy and paste the table below. It is in the same order as on page 111 and in the template, but has additional columns. Determine and insert the financial ratios for Coke for 2016 and 2017. The "Growth ratios" are not strictly ratios, but you will have to determine the change in them (if applicable) from one period to the other expressed as a percentage. There are other ratios you could determine, but use only these. While you may find similar ratios already calculated on the internet, they almost always were done using more compete financial data than what the textbook uses and will be an incorrect answer for this assignment. That said, the goal is not to learn to calculate the ratios, but to determine their significance.

The Industry Average column is not in the template. Use it to state the ratio values for all companies in the beverage industry (Coke's industry). When your do your analysis of the ratios you will be able to compare Coke against others in its industry and maybe determine where Coke has strength or is vulnerable. S&P stands for the Standard and Poor's 500. These are the top 500 publicly traded companies by value in the United States. The S&P 500 is often used as a proxy for all companies in the U.S. In our case, the ratios in this column will represent the average ratio for all companies in the U.S. for that ratio. For this assignment, but not for the two cases later in the course, I have calculated the ratios to use.

Note that there are not values for all ratios. Some do not apply to Coke, but I wanted you to see all of them now because they may apply to the case you will do later in the course. It is also very common not to have perfect data when conducting strategic management.

In the last column you will show your results of an overall analysis of the ratios in each row. You need to first understand what each ratio means and if, by itself, it is significant. Next, You should do several comparisons. How did Cokes ratios change year over year? Are they better or worse? How does Cokes ratio for the same period compare to its industry and compare to the S&P? Determine if each ratio for Coke shows weakness (W), strength (S), or is neutral (N) and put your response in the 6th column.

Underneath your table, explain your reasoning for choosing S, W, or N for each ratio.

Part 2. Determine at least 2 ratios you rated as S and at least 2 ratios ratios you rated as W that are significant for Coke and explain IN DETAIL why they are significant. You can have more than 2 each.

Ratios	Coke 2016	Coke 2017	Coke Industry Avg Ratio - 2017	S&P 500 Average - 2017	S, W, or N
Current Ratio
Quick Ratio
Debt-to-Total-Assets Ratio
Debt-To Equity Ratio
Long-Term Debt to Equity Ratio
Times-Interest Earned Ratio
Inventory Turnover
Fixed Assets Turnover
Total Assets Turnover
Accounts Receivable Turnover
Average Collection Period
Gross Profit Margin
Operating Profit Margin
Net Profit Margin
Return on Total Assets (ROA)
Return on Stockholders' Equity (ROE)
Earnings Per Share (EPS)
Price-Earnings Ratio
Sales Growth
Net Income
Earnings Per Share Growth
Dividends Per Share