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Financial and Economic Interpretation and Communication

Executive Summary of Coca-Cola Amatil Limited Analysis

Coca-Cola Amatil Limited, collected with its businesses, makes, dispenses, and vends both alcoholic and non-alcoholic beverages in several countries. Its product range includes non-alcoholic drinks, water, sports beverages, slushes etc. The business offers its drinks under Sprite, Zico Coconut Water, Grinders Coffee, Fanta, Kiwi Blue as well as alcohol under many other brand names. Amatil Limited was a former name of a company that later changed to Coca-Cola Amatil Limited in 1989. (Coca-Cola Amatil, 2020)

The financial and non-financial performance indicator for Coca-Cola Amatil has been discussed in the report. The report also opens up recommendations and presents facts for the Investors to look into before funding.

Analysis and Interpretation

Various departments of the economy, the soundness and stability are monitored through the extensive use of financial indicators. ... International comparisons are also eased by the use of financial. The performance of Coca-Cola is investigated on some of them that are discussed briefly.


According to the report of Coca- Cola for the year 2019, $603.4 million, up 31.9% was the Statutory Earnings before the Interest and Taxes, and legal Net Revenue After Taxes was about 374.4 million dollars, up 34%. (Annual Report, 2019)

Before the tax, depreciation, tax and the amortization (EBITDA), any earning is considered a measure of a company's operating performance. It is a renowned firm valuation metric which compares a business's general worth to its operative grossing authority. The EBITDA proportion is frequently used for corporate valuation since it shows whether a business may be undervalued or overvalued concerning industry peers. (Infront Analytics, 2019)

$639.3 million was ongoing EBIT that was later up 0.8 per cent. $393.9 million, up 1.4 per cent was ongoing NPAT. 26 cents were the final dividend for the year, which is unfranked This characterizes a complete year continuing pay-out proportion of 86.4%. These statistics eliminate the 4% share superior dividend that was compensated at the end of the initial half subsequent achievement of the asset sale. Amatil dividend is expected to return to frank in 2 years from 2019, at above 50%. (Annual Report, 2019)

As per the analytics, The EBITDA ratio of Amatil is greater than the average of its peer group which is approximately 10. This makes Amatil’s valuation more than the market valuation of its peer group.

Also, it is observed that the EBITDA proportion of Coca-Cola Amatil Ltd is a little greater compared to the median of its sector (Soft Drinks) which is 10.12. The valuation of Amatil is steady with the market estimate of its subdivisions conferring to these fiscal ratios. (Infront Analytics, 2019)

Net Sales:

The company’s net sales chart is shown in figure 1.

Starting from 2015, The net income trend is 5093.6, 5150.8, 4933.8, 4962.5, 5169.9, 4759.3, 5047, 5287, 5733 respectively to 2023. This is clear from the above graph that the net sales of Coca-Cola Amatil are predicted to increase in the coming years. Coca-Cola Amatil’s functioning margin is growing annually, showing that the business is growing in sales and regulating prices.

P/E Ratio:

Price to Earnings ratio is regarded as P/E which is 19.66 for Coca-Cola Amatil, based on the last twelve months record. This is correspondent to income profit of around 5.1%. (Annual Report, 2019)

This ratio shows if the market has more or fewer potentials of a business. Analysing the chart below, Coca-Cola Amatil has a subordinate Price to Earnings ratio compared to the average (28.3) in the beverage industry classification. (Simply Wall St, 2019)

(Simply Wall St, 2019)

Price based on Past Earnings display that Coca-Cola Amatil is a decent worth grounded on grossing than other Brew Industries. This also shows that Amatil is overvalued on earning than the Australian Market.

The second indicator shows the price based on Expected growth in which Amatil displays a poor value built-in forthcoming year (2020).

The third Indicator shows the Price based on the value of assets. This indicator reflected This shows overestimated founded on resources than the Australian Beverage business for Coca-Cola Amatil.

This proposes that the retail industry partakers contemplate Amatil will flounder other businesses in its trade. Though present potentials are near to the ground, the stock could be underestimated if the state is improved compared to the market undertakes. It is debatably worth inspection if insiders are purchasing stocks since this could infer, they have confidence in the stock is underrated.

Future Return on Equity: 

The company’s return on Equity is predicted to be grown in the coming 3 years around 24.7%.

(Stock Analysis Report, 2019)

Risk Analysis – Debt:

Coca-cola Amatil displays a high level of debt. The debt to equity ratio is 135.9 per cent which is well-thought-out as high and equity ratio has amplified from 107.5 per cent to 135.9 per cent in a period of 5 years. (Stock Analysis Report, 2019)

Debt is 2.104 Billion Australian Dollars while Equity is 1.90 for 2019 which make 130% Debt/Equity ratio. (Stock Analysis Report, 2019)

Consumer Satisfaction:

If the non-financial factors are analysed, Coca-Cola Amatil remains concerned about its consumer satisfaction. Consumer comfort and happiness last to be a precedence for Coca-Cola Amatil as they deliver customer choice based on favourites. With this said, the company has claimed to have more 630,000 active customers. (Annual Report, 2019)

Employee Relationship:

Coca Cola Amatil attempt to attain and uphold a zero-harm office where security is everybody’s duty. (Annual Report, 2019)

Conclusion on Coca-Cola Amatil Limited Analysis

According to the 2019 Official Annual report of Coca-Cola, 2019 was a good year with top-line income progress dazzling the influence of the company’s corporate initiatives throughout markets.

The EBTIDA displays a fit monetary performance for the company, showing prudently beset outlay in the Australian and Indonesian industries and sturdy internal market performance.

P/E ratio of Amatil is 19.7, that is overhead its marketplace median of 18.3. The market has from top to bottom prospects of upcoming incomes. Though investors must be observing to purchase stocks about which the market is incorrect. As one of the famous investors stated, “In the short run, a market is a voting machine but in the long run, it is a weighing machine.”

The coming year's prediction shows Coca-Amatil as a good place to invest in. Also, the debt to equity ratio indicates not very high, making it a considerable market to invest it.

Bibliography for Coca-Cola Amatil Limited Analysis

Annual Report. (2019). 2019 Annual Report. Retrieved 10 October 2020, from

Coca-Cola Amatil. (2020). Coca-Cola Amatil | Home. Retrieved 10 October 2020, from

Infront Analytics. (2019). Coca-Cola Amatil Limited: Financial ratios (CCL | AUS | Soft Drinks) - Infront Analytics. Retrieved 10 October 2020, from

Simply Wall St. (2019). Here’s How P/E Ratios Can Help Us Understand Coca-Cola Amatil Limited (ASX:CCL). Retrieved 10 October 2020, from

Stock Analysis Report. (2019). Coca-Cola Amatil (ASX:CCL) - Share price, News & Analysis - Simply Wall St. Retrieved 10 October 2020, from

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