Insights to Create Shareholder Value: Coca-Cola (PDF)

BENEFITS OF DOCUMENT

1. Empower decision makers to be leaders with relevant insights for Strategic decision making to create Shareholder Value​
2. Informs Corporate Strategy development with data, analysis, insight and meaning – in minutes
3. Great for Account Planning - understand the big picture when walking into briefings and writing proposals

DESCRIPTION

This product (Insights to Create Shareholder Value: Coca-Cola) is a 15-page PDF document, which you can download immediately upon purchase.

The key to creating shareholder value lies in the company's ability to grow Economic Profit (earnings after the cost of capital) and Invested capital in tandem, creating a self-reinforcing cycle of accelerating performance and shareholder value at a pace that competitors cannot match.

Why do only a handful of companies in the S&P 500 consistently shatter shareholder expectations while the majority lag behind? Value creation above shareholder expectations in the S&P 500 for example, sits almost entirely in the top quartile of performers. The secret lies not in one-time wins but in mastering a repeatable formula for sustainable growth—one that transforms Economic Profit and Invested Capital into a self-reinforcing engine of shareholder value.

Our reports on a target company and its peer group, classifies companies into four distinct categories based on how effectively they manage the levers of shareholder value.

Champions grow Invested Capital year after year, driven by sustained Economic Profit growth. Champions excel at directing increasing levels of investment at initiatives that drive profit growth, consistently outperforming competitors in shareholder value creation.

Idlers prioritize dependable, stable dividends above all else, limiting risk-taking and capping growth. These typically underperform in terms of share price appreciation.

Chasers aggressively pursue growth – often through M&A – but fail to translate it into sustained profit growth. Over time, their investment capacity erodes, resulting in underperformance in share price trajectory.

Agile Transformers embark on disciplined transformations, often driven by new strategies and leadership. These organizations aim to align strategy, portfolio focus, and capital allocation to ignite the self-reinforcing cycle of performance.

Source: Best Practices in Value Creation, Shareholder Value, Shareholder Value Analysis, Total Shareholder Value PDF: Insights to Create Shareholder Value: Coca-Cola PDF (PDF) Document, PivotXY