Identifying the Stock Exchange of Coca-Cola Stock

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Essay Paper on Stocks
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1. In your own words, identify the stock exchange under NYSE, which is the Coca-Cola stock.
 The Coca-Cola stock is listed as “KO” on the NYSE.
 2. Using the one stock you identified, determine the free cash flow from 2015 and 2016. What inference can you draw from the companies’ free cash flow?
Free Cash Flow (Dec. 2015) = Cash Flow from Operations + Capital Expenditure
 Cash Flow from Operations= 10,528 million
 Capital Expenditure (Purchases of property, plant, and equipment) = (2,553) million
 Free Cash Flow (Dec. 2016) = $ 10,528 million+ $ (2,553) million= $ 7, 975 million
 Free Cash Flow (Dec. 2016) = Cash Flow from Operations + Capital Expenditure
 Cash Flow from Operations= 8,796 million
 Capital Expenditure (Purchases of property, plant, and equipment) = (2,262) million
 Free Cash Flow (Dec. 2016) = $ 8,796 million+ $ (2,262) million= $ 6,534 million
Cash flow from operations in 2015 was $ 10,528 million and $ 8,796 million in 2016, which partly explains the decline in the free cash flow (Coca-Cola, 2017).
 3. Using the 2017 and 2018 financial statements for both stocks, prepare two financial ratios for each of the following categories: liquidity ratios, asset management ratios, and profitability ratios. You should have a total of six ratios for each stock per year. What challenges, strengths, or weaknesses do you see?
 
 
Liquidity ratios
2017
Current ratio 
* Current ratio =Current asset/ current liability= 36,545 M/ 27,194 M = 1.34 
2018
* Current ratio =Current asset/ current liability= 30,634M / 29,223M = 1.05
Quick (Acid Test) Ratio
2017
Quick Ratio= Current assets − Inventories / Current liabilities
* Quick Ratio= (36,545M-2,655M) / 27,194 M= 1.25
2018
* Quick Ratio= (30,634 M-2,766 M) / 29,223 M=0.95
Liquidity ratios answer the question of whether a company can pay for the short-term obligations as they fall due. The current assets were $ 36,545 million in 2017 and $ 30,634 million in 2018 (Coca Cola, 2019). Paying the short-term debt is necessary to maintain liquidity, and the ability to pay the long-term debt and liabilities indicates solvency (Noor, 2020). The current ratio is determined by dividing current assets by the current liabilities and was 1.34 in 2017 but declined to 1.25 in 2018. Current liabilities increased while the current assets declined.
Quick (liquid) assets are assets that can be converted into cash within a short period of time and exclude the inventories since it takes more time to convert the inventories into cash. The quick ratio declined in 2018 as it was 0.95 compared to 1.05 in 2017. When the quick ratio is 1, it implies the quick assets are equal to the current liabilities. Coca Cola can pay off the current liabilities without liquidating the inventory as the quick ratio was ju...