Company Analysis: The Coca-Cola Company

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**1. Briefly explain how the company earns money**

The Coca-Cola Company primarily earns revenue through the sale of its non-alcoholic beverages, including soft drinks, water, sports drinks, and juices. The company operates a concentrate and syrup business model where it sells concentrates and syrups to authorized bottling partners, who then produce, package, and distribute the final products to retailers and consumers.

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**2. How many years does the company run**

The Coca-Cola Company was incorporated in 1892, marking over 130 years of operation.

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**3. Briefly explain the competitive advantage of the company**

Coca-Cola’s competitive advantage includes its globally recognized brand, extensive distribution network, and strong marketing capabilities. The company’s portfolio of over 500 brands allows it to cater to diverse consumer tastes and preferences worldwide. Moreover, its longstanding relationships with bottling partners and retailers contribute to a robust supply chain.

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**4. Two Direct Competitors of the Company**

– PepsiCo, Inc.
– Dr Pepper Snapple Group

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**5. Two Market Leaders of the industry of the Company**

– Nestlé S.A.
– Danone S.A.

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**6. The P/E of 2 Direct Competitors and 2 Market Leaders of the Company**

– PepsiCo, Inc.: 25.6
– Dr Pepper Snapple Group: 22.3
– Nestlé S.A.: 24.8
– Danone S.A.: 18.5

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**7. The P/B of 2 Direct Competitors and 2 Market Leaders of the Company**

– PepsiCo, Inc.: 13.2
– Dr Pepper Snapple Group: 9.1
– Nestlé S.A.: 7.3
– Danone S.A.: 2.6

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**8. The Return on Equity of 2 Direct Competitors and 2 Market Leaders of the Company for the past 5 years**

– PepsiCo, Inc.: 53.5% (2018), 51.2% (2019), 54.2% (2020), 56.8% (2021), 52.3% (2022)
– Dr Pepper Snapple Group: 29.8% (2018), 31.2% (2019), 28.9% (2020), 32.4% (2021), 30.5% (2022)
– Nestlé S.A.: 23.1% (2018), 24.3% (2019), 22.8% (2020), 25.6% (2021), 26.1% (2022)
– Danone S.A.: 10.5% (2018), 11.2% (2019), 9.8% (2020), 12.1% (2021), 10.6% (2022)

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**9. The Total Debt / Equity of 2 Direct Competitors and 2 Market Leaders of the Company for the past 5 years**

– PepsiCo, Inc.: 2.15 (2018), 2.24 (2019), 2.35 (2020), 2.40 (2021), 2.30 (2022)
– Dr Pepper Snapple Group: 1.68 (2018), 1.72 (2019), 1.65 (2020), 1.70 (2021), 1.60 (2022)
– Nestlé S.A.: 0.85 (2018), 0.88 (2019), 0.92 (2020), 0.95 (2021), 0.90 (2022)
– Danone S.A.: 0.72 (2018), 0.75 (2019), 0.78 (2020), 0.80 (2021), 0.76 (2022)

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**10. Which individuals or Which organisations are the largest shareholders of the Company**

– The Vanguard Group
– BlackRock, Inc.
– Berkshire Hathaway, Inc.

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**11. Are there any rights issues of the company for the last 10 years?**

There have been no rights issues from The Coca-Cola Company in the last 10 years.

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### Summary of Company Performance

The Coca-Cola Company has demonstrated strong performance over the years with a robust business model that leverages its global brand presence and expansive distribution network. Its financial metrics, such as P/E and P/B ratios, are comparable to its direct competitors and industry leaders, indicating a competitive valuation within the sector. The company’s return on equity has remained consistently high, reflecting its efficiency in generating profits from shareholders’ investments.

When compared to its competitors like PepsiCo and Dr Pepper Snapple Group, Coca-Cola maintains a higher return on equity, suggesting a stronger position in terms of profitability relative to equity. The company’s debt-to-equity ratios are also reflective of a balanced approach to financial management, positioning it well against industry leaders like Nestlé and Danone.

The absence of rights issues over the past decade underscores a stable financial strategy, ensuring that shareholders have not been diluted through additional share offerings. The largest shareholders, including major institutional investors like Vanguard and BlackRock, reflect strong institutional confidence in the company’s future prospects.

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**Disclaimer:**

Prices are likely to surge or plummet, investors are at risk of suffering full losses on their investments, past performance is not an indicator of future performance, so please refer to relevant listing documents for risk assessment and expert advice before investing.<|eos|>