The Coca-Cola Company (NYSE:KO)- Profitability Ratios Proving Vital for Investment: Colgate-Palmolive (NYSE:CL)

Moving on tracing line, The Coca-Cola Company (NYSE:KO) need to consider for profitability analysis, in latest session share price swings at $41.90 with percentage change of -0.24%.

The Co has positive 17% profit margin to find consistent trends in a firm’s earnings. Gross profit margin and operating profit margin are its sub parts that firm have 60.60% and 20.70% respectively. KO has returns on investment of 9.30%. The returns on assets was 7.80% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 28%, which is measuring profitability by disclosing how much profit generates by KO with the shareholders’ money.

The firm attains analyst recommendation of 2.30 on scale of 1-5 with week’s performance of 4.06%. The firm current ratio calculated as 1.40, this value is acceptable if it lies in 1.3% to 3%. But its varies industry to industry. To strengthen these views, active industry firm has Quick Ratio of 1.30, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 1.81, sometimes its remain same with long term debt to equity ratio.

Colgate-Palmolive Company (NYSE:CL) also making a luring appeal, share price swings at $66.75 with percentage change of 0.69% in most recent trading session.

Profitability Valuation

The profit margin can answer significantly to find consistent trends in a firm’s earnings, the Co has positive 9% profit margin that indicates every dollar of sales a firm actually keeps in earnings, and the larger number indicates improving and vise worse. Gross profit margin, operating profit margin are its sub parts that firm has 59.90% and 17.80% respectively. Moving toward returns ratio, CL has returns on investment of 25.20% which indicates firm’s investment efficiency or to compare the efficiency of a number of different investments.

While returns on assets calculated as 11.10% hat gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of -508.60%, which is measuring a corporation’s profitability by revealing how much profit generates by CL with the shareholders’ money. The firm attains analyst recommendation of 2.70 on scale of 1-5 with week’s performance of 2.43%.

Moving toward ratio analysis, it has current ratio of 1 and quick ratio was calculated as 0.80. The firm attains analyst recommendation of 2.70 out of 1-5 scale with week’s performance of 2.43%.

 

About Aaron Smithies

Aaron Smithies has a wide look on current monetary and financial events. He is an editor and a writer. His views; At Streetwise Report, we think the best opportunities arise from a complete understanding of all investing disciplines in order to identify the most attractive stocks at any given time. Interests: Biotech, Finical markets, Dividend stock ideas & income, Energy stocks, Consumer goods stocks

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