The Coca-Cola Companys 10K Report Analysis

The 10-K report includes many factors involved in the business, and it can be hard for the inexperienced user to study the company via that form. Coca-Cola Company was chosen because of its steady position in the financial market and the well-developed supply chain, which interested me. Upon studying the 10-K report of Coca-Cola, there were three unfamiliar terms that required further investigation.

The understandable items include assets, liabilities, and debt. Those terms are basic for economic studies, so they can be described in general words with reference to the resources such as Investopedia. The term assets refers to things that hold financial or other material value to the company and lead to current or future benefits (Barone). On the contrary, liabilities refer to a companys responsibility to return money to the bank or an investor (Corporate Finance Institute). Usually, it is associated with the credit that the company has. Finally, debt is the sum of money or other material assets that the company owes other stakeholders (Chen).

The items which were new to me include foreign currency adjustments, treasury stock, and goodwill. According to Investopedia, treasury stock refers to shares that were previously owned by a company, which were sold and then repurchased by the same company (Tuovila). Foreign currency adjustments are associated with fluctuations in the currency exchange rate, which over time, has an impact on the amount of money the company receives in its main currency (Freshbooks). Finally, goodwill refers to the nonmaterial of the company, such as reputation, brand, media coverage, and general recognition of the product and its qualities (Hargrave). Therefore, investigating the 10-K and financial statements is important as it shows what items are important in the real business environment.