The Fundamentals of Financial Statement Analysis as Applied to the Coca-Cola Company


One reason for the exacerbation of recent stock market crises is a lack of understanding by investors of financial ratio analysis and what it can reveal about the way companies operate. Stock markets are efficient in that they incorporate, and even anticipate, information about companies based on financial accounting data that is provided by companies. However, market efficiency results from extensive analysis performed by financial analysts. Much of this financial analysis is based on the analysis of company-provided financial information that is then analyzed using financial ratio analysis. The goal of this book is to provide a detailed step-by-step demonstration of how to download data from Internet sources, transfer the data into a spreadsheet, and conduct a financial ratio analysis. The company selected for financial analysis is Coca Cola but the same process outlined in the proposed book could be applied to any company. The data retrieved from the financial statements is copied to a worksheet and used to compute and to graph the financial ratios. The ratios and graphs are used to determine the performance drivers of Coca-Cola. The proposed book can be used as a supplement to basic courses in Corporate Finance, Financial Statement Analysis or in a variety of executive education courses dealing with financial accounting and corporate finance.


About the Author(s)

Carl B. McGowan

Carl B. McGowan, Jr., PhD, CFA is a faculty distinguished professor and professor of finance at Norfolk State University, has a BA in international relations (Syracuse), an MBA in finance (Eastern Mic…

John C. Gardner

John C. Gardner is the KPMG Professor of Accounting in the Department of Accounting at the University of New Orleans. He earned his undergraduate degree from the State University of New York at Albany…

Susan E. Moeller

Susan E. Moeller is a Professor of Finance at Eastern Michigan University. Prior to joining EMU, Dr. Moeller taught at Northeastern University and the University of Michigan–Flint. Her corporate exper…

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Pub Date

October 31, 2014





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