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Interpretation:
Liquidity is actually that in how much time the asset can be converted into
cash. So the liquidity rate is growing in case of 2008.
Interpretation:
It is manufacturing concern so quick ratio must be taken into account more
than any ratio and it must has the value of 1 whereas the company is having values of .
747 and .769 which is alarming for the company but still Coke is improving the ratio
which is in favor of the Coke survival.
Interpretation:
The value of account receivable is better for the organization when it is
larger. The company a/c receivable turn over has increased from 8.69 to 10.33 means that
in 2007 its account receivable turned 8.69 times into cash but in 2008 they turn 10.33
which is good for the firm.
Interpretation:
The objective for managing the inventory is to turn over inventory as
quickly as possible without losing sales from stock. So the turn over is increasing which
is good for the company.
Interpretation:
Total asset turn over indicates the overall efficiency with which the firm
uses its assets to generate sales. The higher the turn over then higher the efficiency by
using assets.
Profitability Ratios
Interpretation:
Gross margin measures the % of each sales amount remaining after the
firm has paid for its goods. So the profit margin is increasing which is beneficial for
Coke.
Interpretation:
The margin is reduced because the profit margin is the measure of
firm success with respect to earn on sale.
Debt Ratios
Debt ratio = debts / total assets * 100