The Coca-Cola Company Financial Results Analysis Assignment

The Coca- boob Company Financial Results Analysis - Assignment ExampleIn this project mho tushs financial results of 2011 have been analyzed. The analysis includes the overall growth of the group, growth in exclusive markets aprospicient with its long term goals and objective. A special analysis has been done on the growth and execution of North American market. Apart from various analyses a comparison has been done between the earning per destiny of the blurb quarter with the historic performance. A study has been made on the impact of emerging markets on the long term growth of the fellowship. This project also includes a study on the profitability drivers of the party and their impact on the companys objective. Accounting Policies The Coca Cola Company follows the US GAAP impersonate for preparing its financial statements. With the information required by GAAP the company also records the non GAAP information which is employ to measure the performance of the company mo re accurately (Coca-Cola Company, 2011, p.12). North American Market The Coca-Cola Company has a strong market in the North American region. In the uphold quarter of 2011 the companys overall record book increased by 6%. The growth in tawdriness in normality America was 4% while the operating income increased by 46% which was highest compared to the percentage increase in other markets. The percentage increase in net operating revenue in North American market was also the highest compared to the increase in other geographical markets where the company operates. The organic volume that is the volume achieved from the companys core operations was more or less same in the second quarter. In North American market the company acquired the bottler CCE which had a positive effect on the company. In North American market the companys change soft drinks volume grew by 6%. The company spent a lot of money in North American market for promoting carbonated soft drinks as result the its org anic volume declined. In North American markets the company performed considerably in terms of volume. The Gold Peak tea itself grew by 38% where as the volume of Powerade and adroit water also grew. Hence in North America the company performed better(p) in the quarter (The Coca-Cola Company, 2011, p.6). Profitability Drivers The Coca Cola Company achieved a higher profit than expected in the second quarter of 2011. There are many reasons behind the increase in profits. The main drivers of profitability of Coca- Cola Company for the quarterly profits are overall growth in volume, price mix and several(predicate) structural change. During the 2nd quarter of 2011 the company achieved growth in volume world wide. In both market whether it is European market or North American or Latin America or Pacific or Asian the volume grew in every market. Increase in trades volume automatically increases the sales revenue and hence their profits get increased. Some structural changes like th e sale of Norway and Sweden bottlers help to reduce the expenses of the company. In North American market the company was able to increase its sell price by 3% to 4% in the 2nd quarter which in turn helped the company to reduce the high commodity costs. The increase in volume will definitely help the company to achieve its long terms goal. The structural changes were made to place the company in a better position in long run which will complement the company in its long term goals (The Coca-Cola Company, 2011, p.8). Comparison of EPS with Historic Results and Long Term Growth With increase in the volume and profits the earning per share of Coca-Cola