This is a graded exercise. Please make sure to follow the instructions carefully, as an evaluator will be giving you feedback on your submission. You must attach the essay as a file.
Understanding financial ratios is key to understanding the financial health of the company at which you work and companies in which you may have personal investments. To better understand the difference between the various financial ratios, conduct a financial analysis of Coca-Cola’s Balance Sheet and make a decision about a personal investment in a 2-3 page essay.
In your essay do the following:
1. Perform a ratio from each of the following categories: Liquidity, Solvency, Profitability, Efficiency
2. Describe your conclusions using a relevant source:
(a) Choose a ratio in each of the categories
(b) Document the ratio calculated and the equation you use to calculate the ratio
(c) Draw a conclusion as to whether the ratio is “good”, “average”, or “poor” based on your knowledge and indicate why you have drawn that conclusion using a credible source
3. Answer the question “If you had the opportunity to invest any amount in Coca-Cola company, how much would you invest based on your financial analysis and why?”