Procesos de traducción teatral

Horizontal analysis focuses on the changes, developments and the trends in financial statements over time. Whereas vertical financial analysis shows a percentage of one financial position compare to another item in a specific time period. In regard of the Coca Cola Company, based on our ratio calculations, it was found that Coca Cola Company is a strong liquid and profitable company. In addition, given that most of the calculated ratios do not show significant differences from one year to another in percentage, shows that Coca Cola Company is a mature and serious company which doesn’t seem to have fluctuations over time in terms of relationship between the inputs and outputs. In other words the increase in outputs, in most of the cases, corresponds with the increase in inputs and vice versa. However, last year, 2016 shows a slight decrease on revenues, which may has occurred as a result of the increase of short term investments, which benefits would come later in a near future.

Having a look at the Consolidated Income Statements (Appendix. 1), in regard of Net Operating Revenues we can see a decrease for around 8% from the year 2014 and 2015 to the year 2016, in figures a

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decrease by 4.135 millions compare to 2014 and by 2.431 millions compare to 2015. These results were also affecting, consolidated net income which decreased compare to the year 2015 and 2014 by 816 millions, and by 574 respectively. These declining figures from the year 2014 to 2015 and 2016 can be noticed in all positions of Income Consolidated statements. As we will explain below, the decrease on revenues came as a result of the increase of short term investments in Consolidated Balance Sheet financial account.

In regard of Consolidated Balance Sheet financial statement (Appendix. 2), it is noticed a considerable increase from the year 2015 to 2016 of cash, cash equivalents and of the short term investments, in figures from 15.631 millions in 2015 to 18.150 millions in 2016. We have noticed a considerable increase of Equity Methods Investment position, in figures from 12.318 millions in 2015 to 12.260 millions in 2016, which means that Coca Cola Company managed to assess the profits earned by its investments in other companies. In addition in Consolidated Balance Sheet financial statement is noticed a considerable increase from the year 2015 to 2016 of cash, cash equivalents and of the short term investments, in figures from 15.631 millions in 2015 to 18.150 millions in 2016. This is where we see the reason why Revenues were decreased in 2016, because there were considerable short term investments. Hence, it is expected that revenue growth trend of Coca Cola Company will recur in the near future.

Total Current Assets of Coca Cola Company as experienced a slight increase, in figures from 33.395 millions in 2015 to 34.010 millions in 2016. Whereas, the Total Current Liabilities and Total Assets have suffered a slight decrease, from 26.929 millions in 2015 to 26.532 millions in 2016, and from 89.996 millions in 2015 to 87.270 millions in 2016.

CONCLUSIONS

The objective of this paper was the analysis of financial account reporting, with its practical example of the Coca Cola Company. As some introductory notes regarding the accounting and financial reporting were conducted, we continued with some short information about the company, which was followed by a literature review and by some practical explanation of profitability, liquidity, activity and dividend ratios. Horizontal and vertical analyses of the Company were also provided, as well as some insights about usefulness of financial reporting. We found that Coca Cola Company regarding profitability was performing relatively well in last three years. However, in regard of the year 2016 it was identified that revenues and incomes in general had suffered a decrease, which according to the thorough analysis of financial statements might have come as a result of the increase of short term investments. Therefore, it is believed that there was kind of trade off between short term profitability and short term investments.

We may conclude that in overall company is performing well in terms of liquidity. All the ratio calculations and analysis indicates slight improvements regarding liquidity.

With regard to activity ratios, according to the ratio calculations, the company is performing very well. Whereas, related to Investments ratios, in the year 2016 Net Income Attributable to Shareowners suffered a slight decrease, which is a direct consequence of the decrease of revenues and other positions of income.

In general annual financial reports of Coca Cola Company are very comprehensive reports. Besides

financial information’s, explanatory notes are provide

d, which makes company’s

easy to understand. We found this simplicity very significant for shareholders. Some research as, Lee & Tweedie, (1977), found that sometimes annual reports lose their importance because the users do not understand them. In addition, besides its simplicity, Coca Cola Company financial annual reports are very well designed and create a very positive perception to a reader.

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