please use the information below to create a report, as the direction explains

1. Revenue Growth & Time-Value-of-Money (TVM) Analysis

Revenue Data (2019-2024)

Based on reputable sources:

Year	Revenue (in $B)
2019	37.27
2020	33.01
2021	38.66
2022	43.00
2023	45.75
2024	47.06

Calculating Compound Annual Growth Rate (CAGR)

5-year CAGR (2019 2024): ~4.8% FinboxReuters

3-year CAGR (2021 2024): ~3.45% FinanceCharts

Forecasting Future Revenue

Assuming a sustained 3.45% CAGR:

Revenue in 3 years (2028): FV = $47.06 B (1 + 0.0345) $52.0 B

Doubling Time: Using Rule of 72 72 3.45 21 years

Doubling by precise formula: n = ln(2) / ln(1 + 0.0345) 20.8 years rounds to ~21 years

You can show the full workings in your report (e.g., using log formulas and compounding steps).

2. Ratio Analysis: Liquidity, Efficiency, Profitability, Leverage & Return Ratios

Liquidity Ratios (2020-2024)

Current Ratio declined from 1.32 (2020) to 1.03 (2024) Stock Analysis on Net

Quick Ratio fell from 0.96 (2020) to 0.72 (2024) Stock Analysis on Net

Working Capital (as of Dec 31, 2024): $25.99 B (current assets) $25.25 B (current liabilities) = $740 M; Current Ratio = 1.03 Investopedia

Interpretation: Coca-Cola's capacity to cover short-term liabilities has weakenedliquidity is still above 1.0, but downward trend suggests pressure on working capital and immediate financial flexibility.

Operating Efficiency, Profitability, Leverage & Return Ratios

Specific numeric details (e.g., inventory turnover, gross margin, ROE, debt-to-equity) should be fetched from sources such as Morningstar as per your assignment guidelines. However, some projections and margins insight is available:

Operating Margin (most recent): ~29.1%; expected growth CLI of ~2.5% to reach ~32.9% by 2028 TIKR.com

Additionally:

Analysts expect revenue growth ~3.2% CAGR over next 5 years TIKR.com

Operating income projected growth ~5.8% CAGR TIKR.com

For other ratios:

Get the three-year historical trends from Morningstar, calculate them, present in tables and trend charts, then analyze:

Operating efficiency: Days sales in inventory, AR turnover, asset turnoverwhat do they say about Coca-Cola's asset utilization trends?

Profitability: Gross, operating, and net marginsare they rising or falling?

Leverage: Debt-to-equity, interest coveragehow is the company financing its operations, and how risky is that structure?

Return: ROA and ROE trendsare they improving? If so, why? Use DuPont analysis to decompose:

Net profit margin Asset turnover Equity multiplier (financial leverage)

Identify which leg has driven changes in ROE over the past three years.

3. Structuring Your Report

Suggested Flow (approximately 8-10 pages total)

Title Page

Executive Summary (1 page): Concise overview of your findings and recommendations.

Introduction (1 short paragraph): Purpose and outline of the paper.

Ratio Analysis Section:

Present tables and charts with ratios (liquidity, efficiency, profitability, leverage, return).

Analyze trends per questions:

Liquidity status

Operating efficiency insights

Profit generation on assets

Financial structure and risk

ROA & ROE changes through DuPont factors

Time Value of Money Analysis:

Show CAGR calculation, revenue forecast in 3 years, doubling time with steps.

Strategic Recommendations (1 page):

Is Coca-Cola financially viable next 2-3 years?

Suggest actionse.g., improve liquidity, optimize working capital, manage leverage, invest in high-margin segments, etc.

Reflection Paragraph (1 paragraph): What you learned and how it's applicable in the workplace.

Tables, Figures, and Appendices (as needed)

Citations and References

4. Additional Resources & Tips

Morningstar: Essential for detailed ratiosnavigate as your assignment directs.

Macrotrends, Finbox, Reuters: Good for revenue and CAGR data.

Ensure all tables have titles (e.g., Table 1: Current and Quick Ratios (2020-2024)) and proper citations (e.g., "Source: Macrotrends").

Use charting tools to visualize ratio trendse.g., line charts for current ratio and quick ratio.

Include DuPont analysis steps explicitly for clarity.

In Summary

Revenue growth (5-year CAGR): ~4.8%, forecast to ~$52 B in 3 years, doubling in ~21 years.

Liquidity: Declining current and quick ratios suggest caution.

Profitability and margins: Operating margin improving, expect further gains.

Next steps: Gather remaining ratios, prepare charts/tables, conduct DuPont breakdown, then synthesize into strategic recommendations.

Explanation:

Financial Feasibility Analysis of The Coca-Cola Company

The Coca-Cola Company remains one of the world's most recognizable beverage industry icons, and a financial feasibility analysis of the company for the period of two to three years involves an essential combination of ratio analysis and time value of money methods. Analysis considers liquidity, profitability, leverage, efficiency, and revenue growth trend to determine if Coca-Cola is ready for long-term stability and performance.

In liquidity terms, Coca-Cola's position weakened slightly over the last few years. The company's current ratio fell from 1.32 in 2020 to 1.03 in 2024, with the quick ratio dropping from 0.96 to 0.72 over the same period. The figures indicate that Coca-Cola will still be able to cover its short-term liabilities, but the buffer has thinned. Working capital for 2024 was a paltry $740 million, a relatively thin cushion for a company of this size across international markets. Cash flow and liquidity reserves need to be closely monitored by management to create financial room.

Operating effectiveness and profitability tell a brighter picture. Coca-Cola's operating margin stands at around 29.1% today and is expected to grow to nearly 33% in 2028. Growth in revenue has also been stable, with the five-year compound annual growth rate (CAGR) standing at nearly 4.8%. These are proofs of robust brand power, sustained demand, as well as effective cost management despite inflationary pressures and currency fluctuations. Asset turns and efficiency ratios, if closely analyzed, ought to confirm Coca-Cola's conservative use of its global distribution network.

The measures of leverage and return of the firm indicate a risk-conscious but well-balanced capital structure. The debt side is substantial, and declining liquidity measures indicate potential danger. Nevertheless, the return on equity (ROE) of Coca-Cola continues to be supported by stable profit margins and effective use of leverage. A DuPont analysis would indicate that net margins contribute most to returns and financial leverage adds to shareholder value creation.

Applying time value of money concepts, Coca-Cola's revenue trend is encouraging. As revenue grows at a three-year rate of 3.45%, it is expected to be approximately $52 billion by the year 2028. Assuming the current trend continues, it would take the company approximately 21 years to double its revenue, which highlights the persistent but slow long-term growth of Coca-Cola.

In short, Coca-Cola is financially healthy for the next three to two years based on strong profitability, stable growth, and long brand resilience. Nonetheless, the management should focus on improving liquidity and prudent debt management. Some strategic steps such as working capital optimization, investing in high-margin business, and emerging market growth will further promote long-term sustainability and shareholder value.

Report Direction:

To evaluate your ability to conduct comprehensive financial analysis combining ratio analysis techniques with time value of money applications to assess a company's financial viability and make strategic recommendations based on quantitative analysis and professional judgment.

Associated Skills

• Financial statement analysis
• Ratio calculation and interpretation
• Trend analysis
• Forecasting techniques
• Time value of money applications
• Research and data collection
• Written communication
• Critical thinking
• Professional presentation of financial analysis findings

Instructions

The project will be completed as an Individual Assignment. THE COMPANY to be analyzed for this project is selected by the instructor.

Please note that you don't need to sign up for any premiums or to pay for any information for the project.

This assessment requires you to demonstrate proficiency in collecting and analyzing financial data, applying analytical techniques to evaluate company performance, integrating quantitative analysis with qualitative business judgment, communicating findings through professional written analysis, and making strategic recommendations based on comprehensive financial evaluation.

You will complete an individual research project analyzing the financial viability of a company selected by your instructor over the next two to three years. This project closely aligns with professional financial analyst responsibilities and can serve as a portfolio piece demonstrating your analytical capabilities to potential employers. The Unit 3 summative assessment effectively reflects real-world, project-based application, as skills demonstrated here like ratio analysis and forecasting revenue directly translate to roles you might undertake professionally, from financial analyst positions requiring company evaluation to corporate development roles involving strategic planning and competitive analysis.

Project Objective: Please remember that you are the financial analyst of THE COMPANY and should prepare the report to be read by the chairman (CEO) of THE COMPANY.

Determine whether THE COMPANY will be financially viable over the next two to three years and recommend specific strategic actions to improve its financial stability and performance.

Research and Analysis Requirements:

1) Introduction (5% of grade):

The paper should begin with a short introduction that explains the purpose of the paper, and provides an overview of the contents that follow (one short paragraph).

Please note that you don't need to sign up for any premiums or to pay for any information for the project.

2) Comprehensive Ratio Analysis (50 % of the project grade):

a) Data Collection and Ratio Calculations:

Collect three years of financial data for your assigned company using reliable sources such as www.morningstar.com (www.morningstar.com)

Collect the following ratio categories:

Liquidity ratios: Current ratio, quick ratio

Operating efficiency ratios: Days of Sales in Inventory, Accounts Receivable Turnover, Inventory Turnover, Total Assets Turnover

Profitability ratios: Gross Profit Margin, Operating Profit Margin, Net Profit Margin

Leverage ratios: Debt-to-Equity, Times Interest Earned (TIE), Financial Leverage (Equity Multiplier)

Return ratios: ROA, ROE

b) Data Source Navigation Instructions:

Liquidity ratios, Debt-to-Equity, and Financial leverage ratios are available on www.morningstar.com > type the stock symbol in the Search window to get into the company's page. Click on Valuation and scroll down to Key Statistics > choose Financial Health tab.

Operating efficiency ratios, Profitability ratios, ROE, and ROA ratios are available on www.morningstar.com > type the stock symbol in the Search window to get into the company's page. Click on Valuation and scroll down to Key Statistics > choose Operating and Efficiency tab.

Present ratios in professional table format. Create graphs for some ratios on your choice to show trends.

If you are using published ratios you must cite the source.

c) Write 2-3 pages (or more) of analysis of the ratio results that you collected. In your analysis you should answer the following questions:

How liquid is the company?

Analyze operating efficiency ratios. What important information does this analysis provide?

Is management generating a substantial profit on the company's assets?

How is the company financing its assets? Discuss how much risk is associated with the financial structure of the company.

Have the company's ROA and ROE changed over the last three years? What was the main factor that influenced this change? To answer this question, apply DuPont analysis and three factors of the DuPont formula: Net profit margin, asset turnover, financial leverage. What ratio(s) has (have) been changed mostly over these three years and why?

3) Time Value of Money Applications (20% of the project grade):

Calculate the compound growth rate of revenue for your company over the last five years using revenue from the income statement five years ago as PV and revenue from the most recent income statement as FV, assuming annual compounding. (All the work must be shown)

Calculate the forecast of revenue in three years from now if the company will be able to sustain the growth rate calculated in the previous question for the next three years, assuming annual compounding. (All the work must be shown)

How many years will it take for the company to double its revenue if it is able to sustain its growth rate from previous questions? (All the work has to be shown)

4) Develop a specific recommendation, with supporting rationale (10% of the project grade): Based on your quantitative analysis, as to whether the assigned company's recent results in ratio analysis is of sufficient financial strength, will THE COMPANY be financially sustainable over the next several years, and which steps should be done to improve its financial stability? If the management of the company would like to improve the company's financial performance, what should the management of THE COMPANY do? Your recommendations should be based on the results of your analysis in the project. (About 1 page)

5) Reflection (5% of the project grade): Please write a paragraph in their own words reflecting on specifically what you learned from the assignment and how you could apply what you learned in the workplace.

Deliverables:

Comprehensive written report (8-10 pages) with executive summary, detailed analysis, and strategic recommendations

Professional data presentation including ratio tables and trend graphs

Complete time value of money calculations with supporting work

Professional citations for all data sources and references

Submission Guidelines / Criteria for Success

General Guidelines for All Written Work

Presentation and Paper Writing (10% of the project grade)

Organization, Format and Presentation of Paper including the Title page, Introduction, Body, and Summary. Each section of the paper must begin with sub-headings.

Please use the sub-headings included in the assignment. Please use double space, with one-inch margins, and use 12-point Times New Roman font.

Use of Tables, Figures and Other Graphics to Summarize and Support Analysis Presented in the Paper. All tables and charts should have the numbering system, like "Table 1...", the title, and foot/end note to reference the source of the information.

Logical and Smooth Flowing Transitions and Relationships among Sections of the Written Report

Research Sources and Significance of Research Information and Data.