Elie Obeid & Isabelle Khalil

• Name: Coca-Cola Co.

• Ticker: KO
• Exchange: New York Stock Exchange (NYSE)
• Number of shares of common stock outstanding: 4,415,922,733
• Industry: Consumer Goods
• Country:`United States
 12 months Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008
ended
Net operating revenues 48,017 46,542 35,119 30,990 31,944
Cost of goods sold -19,053 -18,216 -12,693 -11,088 -11,374
Gross profit 28,964 28,326 22,426 19,902 20,570
Selling, general and administrative expenses -17,738 -17,440 -13,158 -11,358 -11,774
Other operating charges -447 -732 -819 -313 -350
Operating income 10,779 10,154 8,449 8,231 8,446
Interest income 471 483 317 249 333
Interest expense -397 -417 -733 -355 -438
Equity income (loss), net 819 690 1,025 781 -874
Other income (loss), net 137 529 5,185 40 39
Income before income taxes 11,809 11,439 14,243 8,946 7,506
Income taxes -2,723 -2,805 -2,384 -2,040 -1,632
Consolidated net income 9,086 8,634 11,859 6,906 5,874
Net income attributable to noncontrolling interests -67 -62 -50 -82 -67
Net income attributable to shareowners of The
Coca-Cola Company 9,019 8,572 11,809 6,824 5,807
Source: Coca-Cola Co., Annual Reports
Coca-Cola Co., liquidity ratios

Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008
Current ratio 1.09 1.05 1.17 1.28 0.94
Quick ratio 0.77 0.78 0.85 0.95 0.62
Cash ratio 0.59 0.58 0.61 0.67 0.38
Source: Based on data from Coca-Cola Co. Annual Reports

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Coca-Cola Co., profitability ratios

Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008
Return on Sales
Gross profit margin 60.32% 60.86% 63.86% 64.22% 64.39%
Operating profit margin 22.45% 21.82% 24.06% 26.56% 26.44%
Net profit margin 18.78% 18.42% 33.63% 22.02% 18.18%
Return on Investment
Return on equity (ROE) 27.51% 27.10% 38.09% 27.52% 28.37%
Return on assets (ROA) 10.47% 10.72% 16.19% 14.02% 14.33%
Source: Based on data from Coca-Cola Co. Annual Reports

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Activity ratios measure how efficiently a
company performs day-to-day tasks, such
us the collection of receivables and
management of inventory.
Coca-Cola Co., short-term (operating) activity ratios

Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008
Turnover Ratios
Inventory turnover 14.71 15.05 13.25 13.16 14.61
Receivables turnover 10.09 9.46 7.93 8.25 10.34
Payables turnover 24.39 21.43 18.61 21.98 23.32
Working capital turnover 19.15 38.34 11.44 8.09 –
Average No. of Days
Average inventory processing period 25 24 28 28 25
Add: Average receivable collection period 36 39 46 44 35
Operating cycle 61 63 74 72 60
Less: Average payables payment period 15 17 20 17 16
Cash conversion cycle 46 46 54 55 44
Source: Based on data from Coca-Cola Co. Annual Reports

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Average inventory processing period 25 24 28 28 25
Add: Average receivable collection period 36 39 46 44 35
Operating cycle 61 63 74 72 60
Less: Average payables payment period 15 17 20 17 16
Cash conversion cycle 46 46 54 55 44
Source: Based on data from Coca-Cola Co. Annual Reports

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Coca-Cola Co., debt and solvency ratios

Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008
Debt to equity 0.99 0.90 0.76 0.48 0.45
Debt to capital 0.50 0.47 0.43 0.32 0.31
Interest coverage 30.75 28.43 20.43 26.20 18.14
Source: Based on data from Coca-Cola Co. Annual Reports

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Coca-Cola Co., two-component disaggregation of ROE

ROE = ROA × Leverage

Dec 31, 2012 27.51% 10.47% 2.63
Dec 31, 2011 27.10% 10.72% 2.53
Dec 31, 2010 38.09% 16.19% 2.35
Dec 31, 2009 27.52% 14.02% 1.96
Dec 31, 2008 28.37% 14.33% 1.98
Source: Based on data from Coca-Cola Co. Annual Reports

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The primary reason
for the increase in
Return on Equity
(ROE) over 2012 year
is the increase in
Financial Leverage.
Coca-Cola Co., EV calculation

Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008
No. shares of common stock outstanding 4,456,717,99 4,526,408,442 4,588,633,662 4,610,247,876 4,629,316,324
6
Share price (USD $) 38.45 34.59 31.96 26.36 20.54
USD $ in millions
Common equity (market value) 171,36 156,568 146,653 121,526 95,086
1
Add: Equity attributable to noncontrolling interests
(per books) 378 286 314 547 390
Total equity 171,73 156,854 146,967 122,073 95,476
9
Add: Loans and notes payable (per books) 16,297 12,871 8,100 6,749 6,066

Add: Current maturities of long-term debt (per 1,577 2,041 1,276 51 465
books)
Add: Long-term debt (per books) 14,736 13,656 14,041 5,059 2,781
Total equity and debt 204,34 185,422 170,384 133,932 104,788
9
Less: Cash and cash equivalents 8,442 12,803 8,517 7,021 4,701
Less: Short-term investments 5,017 1,088 2,682 2,130 –
Less: Marketable securities 3,092 144 138 62 278
Enterprise value (EV) 187,79 171,387 159,047 124,719 99,809
8

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Coca-Cola Co.'s enterprise value
increased from 2010 to 2011 and from
2011 to 2012, therefore it is safe to invest
in this company.