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Estonian Entrepreneurship University of Applied Sciences Software Development and Entrepreneurship Accounting and Budgeting

The Coca-Cola Company is a beverage manufacturer and retailer headquartered in Atlanta, Georgia. It produces more than 500 brands of non-alcoholic drinks that are sold in over 200 countries. In 2019, Coca-Cola generated $37.27 billion in total revenue with a gross profit margin of 60.8%. The company's flagship product is Coca-Cola, which it sells over 1.6 billion servings of per day. Financial statements show the company has been consistently profitable with gross and net income margins above industry averages in recent years.

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56 views

Estonian Entrepreneurship University of Applied Sciences Software Development and Entrepreneurship Accounting and Budgeting

The Coca-Cola Company is a beverage manufacturer and retailer headquartered in Atlanta, Georgia. It produces more than 500 brands of non-alcoholic drinks that are sold in over 200 countries. In 2019, Coca-Cola generated $37.27 billion in total revenue with a gross profit margin of 60.8%. The company's flagship product is Coca-Cola, which it sells over 1.6 billion servings of per day. Financial statements show the company has been consistently profitable with gross and net income margins above industry averages in recent years.

Uploaded by

Hafiz Muhammad Umar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Estonian Entrepreneurship University of Applied

sciences
Software development and entrepreneurship
Accounting and Budgeting
Coca Cola
The Coca-Cola Company is a beverage retailer, manufacturer and
marketer of non-alcoholic beverage concentrates and syrups. The
company's flagship product is Coca-Cola, but it offers more than 500
brands in over 200 countries or territories and serves 1.6bn servings each
day. The Coca-Cola Company is headquartered in Atlanta, Georgia.
Income statement of coca-cola company
Total Revenue and Gross profit Margin of
coca cola company(annually)
Total Revenue= 37.27 B

Gross Profit Margin (%) = Gross profit / Total Revenue

Gross Profit Margin (%)= 22.65B / 37.27B

Gross Profit Margin (%)= 60.8 %


Gross Margin(annually)

Gross Margin= Sales Revenue- cost of goods sold

Gross Margin= $ 37266 - 14619

Gross Margin= $22,647 B

Sales Price/ Unit= Total sales/ cost of goods sold

Sales Price/ Unit= 37266/14619

Sales Price/ Unit= 2.55


Contribution Margin Per unit
As we know the total revenue of coca cola company is 37.27 B.

CM per unit= sales Price per unit - variable cost price per unit

CM per unit = 2.55 $ - 0.40 $

CM per unit = 2.15 $

Total Variable cost= total variable cost price/unit * number of units sold

Total Variable cost= 0.40 $ * 30.3 B

Total Variable cost= 12.12 B


Contribution Margin

Contribution Margin= Total Revenue -Total variable cost

Contribution Margin = 37.27- 12.12 B

Contribution Margin= 25.15 B


Contribution Margin Ratio

Contribution Margin ratio= Contribution margin / revenue

Contribution Margin ratio= 25.15 B / 37.27 B

Contribution Margin ratio (% )=67.74


Fixed Cost from operating Income

Operating Income= Contribution Margin - fixed cost

10086 = 25.15 B - fixed cost

fixed cost = 25144 B - 10,086 B

fixed cost= 15058 B

https://www.macrotrends.net/stocks/charts/KO/coca-cola/financial-statements
Gross Profit Margin
Net Income Margin
Conclusion

● From the picture in the previous slides, we can see that gross profit
margin of coca cola by 31 dec,2019 is 60.8 % and it’s very good if
we will compare it with the average of previous years that is of 61.2
%. So we can conclude that coca cola is so profitable company.
● Net Income Margin by 31 dec 2019 is 23.9 % and if we will compare
it by the average of previous years that is of 15.7 %, We can
conclude that Coca Cola company is doing very good and doing
progress and making so much profit.

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