Coca Cola Beverages Florida, LLC., is a part of the worlds largest nonalcoholic beverage company. With ownership or license, this company markets more than 500 nonalcoholic beverage brands. According to the annual report of 2018, if I were to advise investment into this company, I would draw attention to their recoverability of current and noncurrent assets. The company faces many uncertainties and risks related to various economic, political, and regulatory environments in the countries in which we operate, particularly in developing and emerging markets. Refer to the heading Our Business Challenges and Risks and Item 1A. Risk Factors in Part I of the report. As a result, management must make numerous assumptions that involve a significant amount of judgment when completing recover ability and impairment tests of current and non current assets in various regions around the world.
The estimates require significant management judgment, including inherent uncertainties and are often interdependent; therefore, they do not change in isolation. Factors that management must estimate include, among others, the economic life of the asset, sales volume, pricing, cost of raw materials, delivery costs, inflation, cost of capital, marketing spending, foreign currency exchange rates, tax rates, capital spending and proceeds from the sale of assets. These factors are even more difficult to predict when global financial markets are highly volatile.
Also, I would draw attention to Item 1A. Risk Factors in Part I of the report for additional information about risks and uncertainties facing our Company. Any investor as well as the companys controlling stockholders should consider the reported factors, which could materially affect their business, financial condition, and or results of operations in future periods. The risks should be analyzed in what would deem to be immaterial or would materially adverse the effects of the business, financial condition, or results of operations in future periods
The public company that I chose is the Amazon company Inc. It is traded in the stock exchange market and its share price as of 1st September 2020 is 3,499.12. It is one of the largest multinational companies in the United States of America. Amazon was founded in 1994 by an American entrepreneur Jeff Bezos with the focus on consumer products such as books among others. It is a transnational electronic commerce organization and the largest retailer in America with distinct five different businesses that the firm has acquired from the time it was established (Gahlot, Singhal & Kendre, 2019). The company started by selling books but has expanded to the sale of different varieties of consumer products such as database technology to videos. Amazon has also expanded operations to Europe and dominated the market where it uses different websites to attract a high number of clients.
There are several ways in which Amazon invests its capital that it has acquired from its main business activities. The best way that it invests a large percentage of the profits is the reinvestment into the company, this is by purchase and development of software that will help in enhancing customer satisfaction. Amazon as an enterprise also participates in the purchase of marketable securities that will help the company to have unitized security funds in case of a liquidity crisis.
Before lending or rather investing money into a company, the investor should look at the profitability ratio of the company, this will show the effectiveness and the ease of how the company will generate profits. The investor should also look at how the company can be capable of meeting its long term and short term obligations therefore, he or she will look into the liquidity ratio of the company. Lastly, the investor should observe and analyze the company’s capability to meets its debts in the debt ratio without forgetting to check the efficiency of the company to meet all these ratios.