Coca-Cola Co reports roughly 9.68
B in cash with 12.62
B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.06.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Coca Cola has an asset utilization ratio of 40.97 percent. This suggests that the company is making $0.41 for each dollar of assets. An increasing asset utilization means that Coca-Cola Co is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in Coca Cola, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Coca Cola along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Coca Cola's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Coca Cola. Your research has to be compared to or analyzed against Coca Cola's peers to derive any actionable benefits. When done correctly, Coca Cola's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Coca Cola.
How important is Coca Cola's Liquidity
Coca Cola
financial leverage refers to using borrowed capital as a funding source to finance The Coca Cola ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Coca Cola financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Coca Cola's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Coca Cola's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Coca Cola's total debt and its cash.
Coca Cola Gross Profit
Coca Cola Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Coca Cola previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Coca Cola Gross Profit growth over the last 10 years. Please check Coca Cola's
gross profit and other
fundamental indicators for more details.
Coca Cola Correlation with Peers
Investors in Coca can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in The Coca Cola. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Coca Cola and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Coca is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of Coca for more details
A Deeper look at Coca
We consider Coca Cola very steady.
Coca-Cola secures Sharpe Ratio (or Efficiency) of 0.0856, which signifies that the company had 0.0856% of return per unit of standard deviation over the last 3 months. Our philosophy in foreseeing the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-seven
technical indicators for Coca-Cola Co, which you can use to evaluate the future volatility of the firm. Please confirm Coca-Cola
mean deviation of 0.9593, and Risk Adjusted Performance of 0.1004 to double-check if the risk estimate we provide is consistent with the expected return of 0.11%.
Momentum Analysis of Coca Cola suggests possible reversal in January
The downside deviation is down to 1.3 as of today.
As of the 3rd of December, Coca Cola shows the
mean deviation of 0.9593, and Risk Adjusted Performance of 0.1004. Coca-Cola
technical analysis gives you the methodology to make use of
historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of
historical prices and volume momentum, or the prices will eventually revert. We were able to break down and interpolate data for nineteen
technical drivers for Coca-Cola Co, which can be compared to its rivals. Please confirm
Coca-Cola variance, as well as the
relationship between the value at risk and
skewness to decide if Coca-Cola is priced correctly, providing market reflects its regular price of 64.35 per share. Given that Coca Cola has
jensen alpha of
(0.014629), we suggest you to validate Coca-Cola Co's prevailing market performance to make sure the company can sustain itself at a future point.
Our Takeaway on Coca Cola Investment
Whereas some other firms under the beverages—non-alcoholic industry are still a bit expensive, Coca Cola may offer a potential longer-term growth to institutional investors. The inconsistency in the assessment between current Coca Cola valuation and our trade advice on Coca Cola is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Coca Cola.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of The Coca Cola. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com