Coca Cola

UNIVERSIDAD AUTNOMA DE NUEVO LEN
FACULTAD DE CONTADURA PBLICA Y ADMINISTRACIN

FINANCES I
Project
COCA COLA
Teacher: Alberto Nava

Group: 4xi
Complete name and ID
Cid Vergara, Edwin. 1648752
Fidalgo Ponce, Grecia Gisela. 1552214
Gmez Vlez, Alexia Karina. 1549372
Medrano Ortiz, Sonia Giselle. 1649032
Mota Garza, Leonel Alan. 1555877
Monterrey, N. L. February 142014
INDEX
INTRODUCTION ..................................................................................................... 3
THE COMPANY ...................................................................................................... 4
COMPANY BACKGROUND.................................................................................... 5
OVERVIEW OF THE ANNUAL REPORT.............................................................. 13
BUSINESS ENVIRONMENT. ................................................................................ 18
THE AUDITORS.................................................................................................... 20
INDUSTRY BACKGROUND ................................................................................. 22
OPERATING ACTIVITIES ..................................................................................... 24
ANALYSIS OF OPERATING ACTIVITIES ............................................................ 35
INVESTING ACTIVITIES....................................................................................... 42
ANALYSIS OF INVESTIG ACTIVITIES ................................................................. 49
EQUITY FINANCING. ........................................................................................... 64
ANALYSIS OF FINANCING ACTIVITIES. ............................................................. 70
COMPARISON TO INDUSTRY BENCHMARKS .................................................. 78
CONCLUSIONS .................................................................................................... 81
BIBLIOGRAPHY.................................................................................................... 86
INTRODUCTION
This is a project where youre going to see Coca-Cola in many ways, talking about
finance, you will have an opportunity to meet this company in different positions.
As you read this project, you will see what its learned in finance, but in real life
event, applying the knowledge its gotten, to analyze all the financial information we
got and how it is analyzed.
You will see here how well they do with those with whom they do business and
their other stakeholders, we took the support from the reports they publish annually
regarding their performance in various aspects of their business, but focusing in
the financial performance. These reports reflect, among other things, their
performance and accomplishments in the areas of product safety, quality and
integrity, marketing and innovation, community support, workplace rights and
protecting the environment, that just were useful in one or other points, but as we
have said, we focused in the financial area.
We review detailed financial information and learn about the scale of their
organization, their operating groups, the scope of their business and relationships
with their bottling partners.
Through the read, you will find the healthy financial issues of Coca-cola Co. has
benefits not just with the income and the success, they have many other way to
make people keep buy his products, by participating in events in most of the times
globally, like the world cup of soccer, event in which they are participating.
The Environmental care of Coca-cola co. and his bottling partners is remarkable,
nowadays they are transform his bottles in to
In any case, financially talking, the health of the company is well maintained, such
as their products all over the world, and we can learn about this project as a
motivator in the future to be part of the graphics that we just research, about
Financial highlights and get to understand them well.
THE COMPANY
Sector: Food and Drinks
Industry: Beverages Industry
Coca Cola Company is related with beverage industry, I think beverage industry
has been growing since 2000, but not just in the soft-drinks area, the main industry
has been growing. Nowadays Coca Cola is leading the beverage industry with
more than 500 beverage brands, including four of the world's top-five sparkling
brands.Besides, every second of the day, people consume nearly 8 thousand
drinks brands of the Coca-cola Company.
We are more interested in knowing about Coca-cola Company, because is not just
a company dedicated to elaborate carbonated and flavored drinks, They concern
about the environment and the ecosystem, and have create already an ecobottle which is designed and made off recycled bottles.
With the Coca Cola Civic Action Network (CAN) they provide information to
the Coca-Cola family about national, state and local issues that could affect the
industry, as well as each of us individually.
In any case, who do not know about Coca Cola Company, Or any drink related
with... Coca cola and their products are around the whole world. If you not know
about it, i think you might be a little disconnected to the world. They even have a
World cup 2014 campaign already. Thats another reason to be interested about.
Mexico have the World record of consumers of Coca cola with 675 bottles Annual
per capita, next to Mexico is Malta with 606, Then Chile with 445, and finally United
States with 394 Annually consumed.
COMPANY BACKGROUND
The Coca-Cola Company is an American multinational beverage corporation and
manufacturer, retailer and marketer of nonalcoholic beverage concentrates and
syrups, which is headquartered in Atlanta, Georgia. The company is best known for
its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith
Pemberton in Columbus, Georgia. The Coca-Cola formula and brand was bought
in 1889 by Asa Griggs Candler (December 30, 1851 - March 12, 1929), who
incorporated The Coca-Cola Company in 1892.
The Coca-Cola Company, incorporated on September 5, 1919, is a beverage
company. The Company owns or licenses and markets more than 500
nonalcoholic beverage brands, primarily sparkling beverages but also a variety of
still beverages, such as waters, enhanced waters, juices and juice drinks, ready-todrink teas and coffees, and energy and sports drinks. It owns and markets a range
of nonalcoholic sparkling beverage brands, which includes Coca-Cola, Diet Coke,
Fanta and Sprite. The Companys segments include Eurasia and Africa, Europe,
Latin America, North America, Pacific, Bottling Investments and Corporate. On
December 30, 2011, the Company acquired Great Plains Coca-Cola Bottling
Company (Great Plains) in the United States
Founded: 1892
Founders: Asa Griggs Candler
Initial public offering: 1919
Headquarters: 384 Northyards Blvd NW #690, Atlanta, GA 30313, United States.
Independent Audit Firm: Ernst & Young LLP
Webpage: http://www.coca-colacompany.com/
Company size.
Through the world's largest beverage distribution system, consumers in more than
200 countries enjoy its beverages at a rate of more than 1.8 billion servings a day.
With an enduring commitment to building sustainable communities, the Company
is focused on initiatives that reduce its environmental footprint, support active,
healthy living, create a safe, inclusive work environment, and enhance the
economic development of the communities where it operates. Together with its
bottling partners, it ranks among the world's top 10 private employers with more
than 700,000 system associates.
AnnualSummary Data (Millions)

Year
Sales
Net Income
EPS
12/2009
30,990.00
7,605.00
1.46
12/2010
35,119.00
11,787.00
2.53
12/2011
46,542.00
8,584.00
1.84
12/2012
48,017.00
9,019.00
1.97
12/2013
46,854.00
8,584.00
1.90
GrowthRates
10.89
3.07
6.81
Coca-Cola Board of Directors.
Muhtar Kent
Muhtar Kent is Chairman of the Board and Chief Executive Officer of The CocaCola Company, a position he has held since April 2009. Previously he was
President and Chief Executive Officer and earlier, President and Chief Operating
Officer.
Mr. Kent joined The Coca-Cola Company in Atlanta in 1978, holding a variety of
marketing and operations leadership positions over the course of his career. In
1985, he became General Manager of Coca-Cola Turkey and Central Asia.
Beginning in 1989, he served as President of the Company's East Central Europe
Division and Senior Vice President of Coca-Cola International, with responsibility
for 23 countries.
Herbert A.Allen
President and Chief Executive Officer
Herbert A. Allen has been director of The Coca-Cola Company since 1982. Mr.
Allen is President, Chief Executive Officer and a Director of Allen & Company
Incorporated, a privately held investment firm, and has held these positions for
more than the past five years.
Ronald W. Allen
Ronald W. Allen has been a Director of The Coca-cola Company since 1991. In
November 2012, Mr. Allen was appointed Chairman of the Board of Aarons, Inc.,
where he has served as a Director since 1997. Mr. Allen as served as President
and Chief Executive Officer of Aarons, Inc. since February 2012 and as interim
President and Chief Executive Officer of Aarons, Inc. from November 2011 until
February 2012. Mr. Allen retired as the Chairman of the Board, President and Chief
Executive Officer of Delta Air Lines, Inc., one of the worlds largest global airlines,
in July 1997. From July 1997 through July 2005, Mr. Allen was a consultant to and
Advisory Director of Delta. He previously served as a Director of Interstate Hotels &
Resorts, Inc. from 2006 to 2010.
Ana Botn
Ms. Botn has been a director of The Coca-Cola Company since July 18, 2013.
Ms. Botn is Chief Executive Officer and a Director of Santander UK plc, a leading
financial services provider in the United Kingdom and subsidiary of Banco
Santander, S.A., and has held these positions since December 2010. Ms. Botn
served as Executive Chairman of Banco Espaol de Crdito, S.A., also a
subsidiary of Banco Santander, S.A., from 2002 to 2010. She started her 32-year
career in the banking industry at JP Morgan in New York in 1981 and in 1988
joined Banco Santander, S.A., a global, multinational bank, where she established
and led its international corporate banking business in Latin America in the 1990s.
She previously served as a director of Assicurazion iGeneraliS.p.A., a global
insurance company based in Italy, from 2004 to 2011. She is a Director of Banco
Santander, S.A.
Howard G. Buffet
Howard G. Buffett has been a Director of The Coca-Cola Company since 2010. Mr.
Buffett is President of Buffett Farms, a commercial farming operation, and
Chairman and Chief Executive Officer of the Howard G. Buffett Foundation, a
charitable foundation that supports initiatives focused on food and water security,
conservation and conflict management, and has held these positions for more than
the past five years. He is a Director of Berkshire Hathaway Inc. and Lindsay
Corporation.
Richard M. Daley
Richard M. Daley has been a Director of The Coca-Cola Company since 2011. Mr.
Daley was the Mayor of Chicago from 1989 to 2011. Mr. Daley is the Executive
Chairman of Tur Partners LLC, an investment and advisory firm focusing on
sustainable solutions within the urban environment, and has held this position
since May 2011. He is an Of Counsel at Katten Muchin Rosenman LLP, a fullservice law firm with more than 600 attorneys in locations across the United States
and an affiliate in London and Shanghai, and has held this position since June
2011. In October 2011, he was appointed a senior advisor to JPMorgan Chase &
Co., where he chairs the Global Cities Initiative, a joint project of JPMorgan
Chase & Co. and the Brookings Institution to help cities identify and leverage their
greatest economic development resources. Mr. Daley also has been a
distinguished senior fellow at the University of Chicago Harris School of Public
8
Policy since May 2011. He is also a Director of Diamond Resorts International,

Inc.
Barry Diller
Barry Diller has been a Director of The Coca Cola Company since 2002. Mr. Diller
is Chairman of the Board and Senior Executive of IAC/InterActiveCorp, a leading
media and Internet company. Mr. Diller held the positions of Chairman of the
Board and Chief Executive Officer of IAC/InterActiveCorp and its predecessors
since August 1995 and ceased serving as Chief Executive Officer in December
2010. Mr. Diller is also Chairman of the Board and Senior Executive of Expedia,
Inc., an online travel company. Mr. Diller has served as Special Advisor to Trip
Advisor, Inc., an online travel company, since April 2013 and served as its
Chairman of the Board and Senior Executive from December 2011, when it was
spun off from Expedia, Inc., until December 2012, and was a member of its Board
until April 2013. Mr. Diller served as the non-executive Chairman of the Board of
Ticketmaster Entertainment, Inc. from 2008 to 2010, when it merged with Live
Nation, Inc. to form Live Nation Entertainment, Inc. Mr. Diller served as the nonexecutive Chairman of the Board of Live Nation Entertainment, Inc. from January
2010 to October 2010 and was a member of its Board until January 2011. Mr. Diller
also is a Director of Graham Holdings Company (formerly The Washington Post
Company).
Helen D. Gayle
Dr. Gayle has been a director of The Coca-Cola Company since April 24, 2013.
Dr. Gayle has been President and Chief Executive Officer of CARE USA, a leading
international humanitarian organization, since 2006. From 2001 to 2006, she
served as senior advisor in the Global Health Program at the Bill & Melinda Gates
Foundation. Dr. Gayle started her 20-year career in public health at the U.S.
Centers for Disease Control and Prevention (CDC) in 1984 where she held
various positions, ultimately becoming the director of the CDCs National Center for
HIV, STD and TB Prevention in 1995.
Evan G. Greenberg
Evan G. Greenberg has been a Director of The Coca-Cola Company since 2011.
Mr. Greenberg is the Chairman and Chief Executive Officer of ACE Limited, the
parent company of the ACE Group of Companies, a global insurance and
reinsurance organization. He served as President and Chief Operating Officer of
ACE Limited from June 2003 to May 2004, when he was elected to the position of
President and Chief Executive Officer. Mr. Greenberg has served on the Board of
ACE Limited since 2002 and was elected as Chairman of the Board of Directors in
May 2007. Prior to joining the ACE Group in 2001, Mr. Greenberg held a number of
9
senior management positions at American International Group, Inc., most recently

serving as President and Chief Operating Officer from 1997 until 2000.
Alexis M. Herman
Alexis Herman has been a Director of The Coca Cola Company since 2007. Ms.
Herman is the Chair and Chief Executive Officer of New Ventures LLC, a corporate
consulting company, and has held these positions since 2001. She serves as Chair
of the Business Advisory Board of Sodexo, Inc., an integrated food and facilities
management services company, and as Chair of Toyota Motor Corporation's North
American Diversity Advisory Board. As chair of the Company's Human Resources
Task Force from 2001 to 2006, Ms. Herman worked with the Company to identify
ways to improve its human resources policies and practices following the
November 2000 settlement of an employment lawsuit. From 1997 to 2001, she
served as U.S. Secretary of Labor. She is also a Director of Cummins Inc., Entergy
Corporation and MGM Resorts International.
Robert A. Kotick
Robert A. Kotick has been a Director of The Coca-Cola Company since 2012. Mr.
Kotick is President, Chief Executive Officer and a Director of Activision Blizzard,
Inc., an interactive entertainment software company, and has held these positions
since 2008. Mr. Kotick served as Chairman and Chief Executive Officer of the
predecessor to Activision Blizzard, Inc. from 1991 to 2008.
Maria Elena Lagomasino

Maria Elena Lagomasino has been a Director of The Coca-Cola Company since
2008. Ms. Lagomasino is the Chief Executive Officer and Managing Partner of WE
Family Offices, a multi-family office serving global high net worth families, and has
held these positions since March 2013. Ms. Lagomasino served as Chief Executive
Officer of GenSpring Family Offices, LLC, an affiliate of SunTrust Banks, Inc., from
November 2005 through October 2012. From September 2001 to March 2005, Ms.
Lagomasino was Chairman and Chief Executive Officer of JPMorgan Private Bank,
a division of JPMorgan Chase & Co., a global financial services firm. Prior to
assuming this position, she was Managing Director of The Chase Manhattan Bank
in charge of its Global Private Banking Group. Ms. Lagomasino had been with
Chase Manhattan since 1983 in various positions in private banking. She is a
Director of Avon Products, Inc. and served as a Director of the Company from April
2003 to April 2006.
10
Sam Nunn
Sam Nunn has been a Director of The Coca Cola Company since 1997. Mr. Nunn
is Co-Chairman and Chief Executive Officer of the Nuclear Threat Initiative, a
position he has held since 2001. The Nuclear Threat Initiative is a nonprofit
organization working to reduce the global threats from nuclear, biological and
chemical weapons. He has served as the Chairman of the Board of the Center for
Strategic & International Studies since 1999. He served as a member of the United
States Senate from 1972 through 1996. He previously served as a Director of
Chevron Corporation from 1997 to 2011, Dell Inc. from 1999 to 2011, General
Electric Company from 1997 to April 2013 and Hess Corporation from 2012 to May
2013.
James D. Robinson III

James D. Robinson III has been a Director of The Coca Cola Company since
1975. Mr. Robinson is Co-Founder and General Partner of RRE Ventures, an early
stage technology-focused venture capital firm, and has held this position since
1994. He is also President of J.D. Robinson, Inc., a strategic advisory firm. He
served as non-executive Chairman of the Board of Bristol-Myers Squibb Company
from 2005 to 2008 and as Chairman and Chief Executive Officer of American
Express Company from 1977 to 1993. He previously served as a Director of
Novell, Inc. from 2001 to 2009.
Peter V. Ueberroth
Peter V. Ueberroth has been a Director of The Coca Cola Company since 1986.
Mr. Ueberroth is an investor and Chairman of the Contrarian Group, Inc., a
business management company, and has held this position since 1989. He serves
as Chairman of the Board of Aircastle Limited and non-executive Co-Chairman of
Pebble Beach Company. He previously served as a Director of Adecco SA from
2004 to 2008 and Ambassadors International, Inc. from 2005 to 2008.
11
Coca-Cola Majority-owned Subsidiaries

Holder
Shares
Berkshire Hathaway Inc
%
Out
400,000,000 9.10
Vanguard Group Inc.
218,661,801 4.98
State Street Corporation
176,901,346 4.02
FMR, LLC
124,359,813 2.83
BlackRock Institutional Trust

Company, N.A.
Northern Trust Corporation
98,853,867
2.25
70,816,142
1.61
Bank of New York Mellon

Corporation
Yacktman Asset Management
LP
BlackRock fund advisors
54,975,213
1.25
43,243,371
0.98
42,427,078
0.97
Grantham Mayo Van

Otterloo&Company
38,425,687
0.87
Value*
Reported
16,524,00,000 Dec 31
2013
9,032,918,999 Dec 31
2013
7,307,794,603 Dec 31
2013
5,137,303,875 Dec 31
2013
4,083,653,245 Dec 31
2013
2,925,414,826 Dec 31
2013
2,271,026,049 Dec 31
2013
1,786,383,656 Dec 31
2013
1,752,662,592 Dec 31
2013
1,587,365,129 Dec 31
2013
12
OVERVIEW OF THE ANNUAL REPORT

1.- Financial Highlights:
Financial information: 10 years.
Growth Profitability and Financial Ratios for Coca-Cola Co
Financials
2004-12
2005-12
2006-12
2007-12
2008-12
2009-12
2010-12
2011-12
2012-12
2013-12
TTM
Revenue USD Mil
21,962
23,104
24,088
28,857
31,944
30,990
35,119
46,542
48,017
46,854
Gross Margin %
65.2
64.5
66.1
63.9
64.4
64.2
63.9
60.9
60.3
60.7
Operating Income USD Mil
5,698
6,085
6,308
7,252
8,446
8,231
8,449
10,154
10,779
10,228
Operating Margin %
25.9
26.3
26.2
25.1
26.4
26.6
24.1
21.8
22.4
21.8
Net Income USD Mil
4,847
4,872
5,080
5,981
5,807
6,824
11,809
8,572
9,019
8,584
Earnings Per Share USD
1
1.02
1.08
1.29
1.25
1.47
2.53
1.85
1.97
1.9
Dividends USD
0.5
0.56
0.62
0.68
0.76
0.82
0.88
0.94
1.02
1.12
Payout Ratio %
50
55
57.4
53
61.2
56
34.8
50.9
51.8
58.8
Shares Mil
4,858
4,786
4,700
4,662
4,672
4,658
4,666
4,646
4,584
4,509
Book Value Per Share USD
3.29
3.44
3.61
4.7
4.42
5.38
6.76
6.99
7.34
7.54
Operating Cash Flow USD Mil
5,968
6,423
5,957
7,150
7,571
8,186
9,532
9,474
10,645
10,542
Cap Spending USD Mil
-755
-899
-1,407
-1,648
-1,968
-1,993
-2,215
-2,920
-2,780
-2,550
Free Cash Flow USD Mil
5,213
5,524
4,550
5,502
5,603
6,193
7,317
6,554
7,865
7,992
Free Cash Flow Per Share USD
1.07
1.15
0.97
1.18
1.2
1.33
1.57
1.41
1.72
1.77
Working Capital USD Mil
1,123
414
-449
-1,120
-812
3,830
3,071
1,214
2,507
3,493
Company and products

As we know The Coca-Cola Company is the world's largest beverage company,
which offers consumers 500 brands of soft drinks without gas.
13
46,395
60.8
10,196
22
8,452
1.88
1.15
60.9
4,493
7.43
11,130
-2,501
8,629
Along with Coca-Cola, recognized as the world's most valuable brand, the product
portfolio of the company includes 12 other brands worth several billion dollars,
including Coca-Coca Light, Fanta, Sprite, Coca -Cola Zero, vitamin water,
Powerade and Minute Maid.
Globally, Coke is the leading supplier of soft drinks, juices and juice-based drinks
as well as tea and coffee ready to drink. Through more beverage distribution
system in the world, consumers in more than 200 countries enjoy the Company's
beverages at a rate of nearly 1,600 billion servings a day. In its ongoing
commitment to building sustainable communities, Coca Cola focuses on a series of
initiatives to protect the environment, conserve resources and enhance the
economic development of the communities where it operates.
Management Discussion and Analysis:

Coca cola has being the #1 of nonalcoholic beverage companies, as well as one of
the world's most recognizable brands. Coca cola has many competitors throughout
the world, the majoritarian these are small, true coca cola competitors globally are:
DPS = Dr Pepper Snapple Group, Inc.
NSRGY = Nestl
PEP = Pepsico, Inc.
Industry = Beverages - SoftDrinks
14
Coca-Cola Co., Consolidated Income Statement

USD $ in millions
12 months ended Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
Net operating revenues
46,854
48,017
46,542
35,119
30,990
Cost of goods sold
-18,421
-19,053
-18,216
-12,693
-11,088
Gross profit
28,433
28,964
28,326
22,426
19,902
Selling, general and administrative expenses
-17,310
-17,738
-17,440
-13,158
-11,358
Other operating charges
-895
-447
-732
-819
-313
Operating income
10,228
10,779
10,154
8,449
8,231
Interest income
534
471
483
317
249
Interest expense
-463
-397
-417
-733
-355
Equity income, net
602
819
690
1,025
781
Other income (loss), net
576
137
529
5,185
40
Income before income taxes
11,477
11,809
11,439
14,243
8,946
Income taxes
-2,851
-2,723
-2,805
-2,384
-2,040
Consolidated net income
8,626
9,086
8,634
11,859
6,906
Net income attributable to noncontrolling interests
-42
-67
-62
-50
-82
Net income attributable to shareowners of The
Coca-Cola Company
8,584
9,019
8,572
11,809
6,824
Coca-Cola Co.'s net operating revenues increased from 2011 to 2012 but
then slightly declined from 2012 to 2013 not reaching 2011 level.
Coca-Cola Co.'s operating income increased from 2011 to 2012 but then
slightly declined from 2012 to 2013 not reaching 2011 level.
Coca-Cola Co.'s income before income taxes increased from 2011 to 2012
but then slightly declined from 2012 to 2013 not reaching 2011 level.
Coca-Cola Co.'s consolidated net income increased from 2011 to 2012 but
then declined significantly from 2012 to 2013.
15
Coca-Cola Co.'s net income attributable to shareowners of The Coca-Cola

Company increased from 2011 to 2012 but then slightly declined from 2012
to 2013 not reaching 2011 level.
Coca-Cola Co., Consolidated Statement of Financial Position, Liabilities and Stockholders' Equity
USD $ in millions
Accrued marketing
Other accrued expenses
Trade accounts payable
Accrued compensation
Sales, payroll and other taxes
Container deposits
Accounts payable and accrued expenses
Loans and notes payable
Current maturities of long-term debt
Accrued income taxes
Liabilities held for sale
Current liabilities
Long-term debt, excluding current maturities
Other liabilities
Deferred income taxes
Noncurrent liabilities
Total liabilities
Common stock, $0.25 par value
Capital surplus
Reinvested earnings
Accumulated other comprehensive loss
Treasury stock, at cost
Equity attributable to shareowners of The CocaCola Company
Equity attributable to noncontrolling interests
Total equity
Total liabilities and equity
Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
2,407
2,231
2,286
2,250
1,912
3,515
2,711
2,749
2,920
1,883
1,933
1,969
2,172
1,887
1,410
933
1,045
1,048
1,068
720
450
389
405
401
375
339
335
349
333
357
9,577
8,680
9,009
8,859
6,657
16,901
16,297
12,871
8,100
6,749
1,024
1,577
2,041
1,276
51
309
471
362
273
264
796
27,811
27,821
24,283
18,508
13,721
19,154
14,736
13,656
14,041
5,059
3,498
5,468
5,420
4,794
2,965
6,152
4,981
4,694
4,261
1,580
28,804
25,185
23,770
23,096
9,604
56,615
53,006
48,053
41,604
23,325
1,760
1,760
880
880
880
12,276
11,379
11,212
10,057
8,537
61,660
58,045
53,550
49,278
41,537
-3,432
-3,385
-2,703
-1,450
-757
-39,091
-35,009
-31,304
-27,762
-25,398
33,173
267
33,440
90,055
32,790
378
33,168
86,174
31,635
286
31,921
79,974
31,003
314
31,317
72,921
24,799
547
25,346
48,671
Coca-Cola Co.'s trade accounts payable declined from 2011 to 2012 and
from 2012 to 2013.
Coca-Cola Co.'s current liabilities increased from 2011 to 2012 but then
slightly declined from 2012 to 2013.
Coca-Cola Co.'s noncurrent liabilities increased from 2011 to 2012 and from
2012 to 2013.
Coca-Cola Co.'s total liabilities increased from 2011 to 2012 and from 2012
to 2013.
Coca-Cola Co.'s equity attributable to shareowners of The Coca-Cola
Company increased from 2011 to 2012 and from 2012 to 2013.
Coca-Cola Co.'s total equity increased from 2011 to 2012 and from 2012 to
2013.
16
Coca-Cola Co., Consolidated Statement of Cash Flows

USD $ in millions
12 months ended Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
8,626
9,086
8,634
11,859
6,906
Depreciation and amortization
1,977
1,982
1,954
1,443
1,236
Stock-based compensation expense
227
259
354
380
241
648
632
1,028
617
353
Equity income, net of dividends
-201
-426
-269
-671
-359
Foreign currency adjustments
168
-130
7
151
61
Significant (gains) losses on sales of assets, net
-670
-98
-220
-645
-43
Other significant (gains) losses, net
-4,713

465
166
214
264
134
Other items
234
254
-335
477
221
(Increase) decrease in trade accounts receivable
28
-33
-562
-41
-404
(Increase) decrease in inventories
-105
-286
-447
182
-50
(Increase) decrease in prepaid expenses and other
assets
-163
-29
-350
-148
-332
Increase (decrease) in accounts payable and
accrued expenses
-158
-556
63
656
319
Increase (decrease) in accrued taxes
22
770
-132
-266
81
Increase (decrease) in other liabilities
-556
-946
-465
-13
-178
Net change in operating assets and liabilities
-932
-1,080
-1,893
370
-564
Net cash provided by operating activities
10,542
10,645
9,474
9,532
8,186
Purchases of investments
-14,782
-14,824
-4,798
-4,711
-2,152
Proceeds from disposals of investments
12,791
7,791
5,811
5,004
240
Acquisitions of businesses, equity method
investments and nonmarketable securities
-353
-1,486
-971
-2,511
-300
Proceeds from disposals of businesses, equity
method investments and nonmarketable securities
Purchases of property, plant and equipment
Proceeds from disposals of property, plant and
equipment
Other investing activities
Net cash used in investing activities
Issuances of debt
Payments of debt
Issuances of stock
Purchases of stock for treasury
Dividends
Other financing activities
Net cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents
Cash and cash equivalents, net increase
(decrease) during the year
Cash and cash equivalents, balance at beginning of
year
Cash and cash equivalents, balance at end of
year
872
-2,550
20
-2,780
398
-2,920
-2,215
-1,993
111
-303
-4,214
43,425
-38,714
1,328
-4,832
-4,969
17
-3,745
143
-268
-11,404
42,791
-38,573
1,489
-4,559
-4,595
100
-3,347
101
-145
-2,524
27,495
-22,530
1,569
-4,513
-4,300
45
-2,234
134
-106
-4,405
15,251
-13,403
1,666
-2,961
-4,068
50
-3,465
104
-48
-4,149
14,689
-12,326
664
-1,518
-3,800
-2
-2,293
-611
-255
-430
-166
576
1,972
-4,361
4,286
1,496
2,320
8,442
12,803
8,517
7,021
4,701
10,414
8,442
12,803
8,517
7,021
The net cash from (used in) all of the entity's operating activities, including those of
discontinued operations, of the reporting entity. Operating activities generally
involve producing and delivering goods and providing services. Operating activity
cash flows include transactions, adjustments, and changes in value that are not
defined as investing or financing activities.
Coca-Cola Co.'s net cash provided by operating activities increased from 2011 to
2012 but then slightly declined from 2012 to 2013.
17
BUSINESS ENVIRONMENT.
The Coca-Cola Company is the worlds largest beverage company. They own or
license and market more than 500 nonalcoholic beverage brands, primarily
sparkling beverages but also a variety of still beverages such as waters, enhanced
waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and
sports drinks. They own and market four of the worlds top five non-alcoholic
sparkling beverage brands: Coca-Cola, Diet Coke, Fanta and Sprite.
They make their branded beverage products available to consumers throughout
the world through their network of Company-owned or controlled bottling and
distribution operations as well as independent bottling partners, distributors,
wholesalers and retailers, the worlds largest beverage distribution system.
Beverages bearing trademarks owned by or licensed to us account for 1.9 billion of
the approximately 57 billion beverage servings of all types consumed worldwide
every day.
In their concentrate operations, they typically sell concentrates and syrups to their
bottling partners, who use the concentrate to manufacture finished products which
they sell to distributors and other customers. Outside the United States, their
concentrate operations also include the sale of concentrates for fountain
beverages to their bottling partners who are typically authorized to manufacture
fountain syrups, which they sell to fountain retailers such as restaurants and
convenience stores which use the fountain syrups to produce beverages for
immediate consumption, or to authorized fountain wholesalers who in turn sell and
distribute the fountain syrups to fountain retailers.
In addition, from time to time they make equity investments representing noncontrolling interests in selected bottling operations with the intention of maximizing
the strength and efficiency of the Coca-Cola systems production, marketing, sales
and distribution capabilities around the world. These investments are intended to
result in increases in unit case volume, net revenues and profits at the bottler level,
which in turn generate increased concentrate sales for our Companys concentrate
and syrup business. When this occurs, both they and their bottling partners benefit
from long-term growth in volume, improved cash flows and increased shareowner
value.
18
Competitive factors impacting their business include, but are not limited to, pricing,
advertising, sales promotion programs, product innovation, increased efficiency in
production techniques, the introduction of new packaging, new vending and
dispensing equipment, and brand and trademark development and protection.
Their competitive strengths include leading brands with high levels of consumer
acceptance; a worldwide network of bottlers and distributors of Company products;
sophisticated marketing capabilities; and a talented group of dedicated associates.
Their competitive challenges include strong competition in all geographic regions
and, in many countries, a concentrated retail sector with powerful buyers able to
freely choose among Company products, products of competitive beverage
suppliers and individual retailers own store or private label beverage brands.
Consumer demand determines the optimal menu of Company product offerings.

Consumer demand can vary from one locale to another and can change over time
within a single locale. Employing their business strategy, and with special focus on
core brands, the Company seeks to build its existing brands and, at the same time,
to broaden its historical family of brands, products and services in order to create
and satisfy consumer demand locale by locale.
19
THE AUDITORS
Ernst & Young has one of the worlds largest tax practices, serving multinational
clients that have to comply with multiple local tax laws. It looks like Ernst &Younng
has been with Coca-cola since the 90s till today.
E&Y is one of the Big four accountant firms of the world; third in revenue behind
Price waterhouse coopers and Deloitte Touche Tohmatsu, And ahead of KPMG. It
has some 700 offices that provide Auditory and accounting services in 140
countries. It also provides legal services and advisory services relating to emerging
growth companies, human resources issues, and corporate transactions, mergers
and acquisitions, etc.
In The next article from 1990 we can prove that E&Y has been collaborating with
Coca-cola Co. since that date.
Ernst Drops Pepsi for Coke As Auditor
A Coke executive, Carlton L. Curtis, disputed Pepsi's account. ''That was an Ernst
& Young decision,'' he said. Mort Meyerson, a spokesman for the accounting firm,
said, ''We have made a decision to make a choice between two valued clients
because we understood the Coca-Cola Company's concerns.'' The auditor change
was disclosed yesterday in documents that Pepsico filed with the Securities and
Exchange Commission.
This is the most prominent account conflict since the merger fever struck the
accounting profession last spring. To the accounting firms that were weighing
mergers, some shuffling of clients was viewed as unavoidable under the rules
governing the profession because of the conflicts that the combinations would
create. But accounting experts also predicted that other clients would be
uncomfortable being served by the same accounting firm that handled their
archrivals.
''They're taking the ad agency attitude, namely we wouldn't have the same ad
agency for Pepsi and Coke, so why should we have the same accountants,''
Spencer Harris, a Menlo Park, Calif., publisher who tracks auditor changes, said of
Coca-Cola.
Arthur Young's relationship with Pepsico spans two and a half decades, while Ernst
&Whinney has reviewed Coca-Cola's books since the 1920's. $9 Million Account
Ernst & Young is giving up an account that has generated nearly $9 million in each
of the last two years in audit and tax fees, according to Pepsico's latest proxy.
20
Coca-Cola and its affiliates are believed to spend about $14 annually. Both
numbers are less than 1 percent of Ernst's $4.5 billion in revenues last year.
In a deal with the government signed this week, accounting firm Ernst & Young
agreed to pay $123 million to the government and admitted to wrongful conduct by
some of its partners and employees in connection with the firms participation, from
1999 to 2004, in the promotion of abusive tax shelters to rich individuals. In return,
the firm itself wont face criminal charges.
As part of a non-prosecution agreement that U.S. Attorney for the Southern District
of New York PreetBharara announced today, E&Y acknowledged that in league
with various law firms, banks and investment advisors, it developed and sold four
different tax shelter products designed to save 200 high net worth clients $2 billion
in tax. For its efforts, E&Y received gross fees of about $123 millionthe amount
its now forking over to the government. As part of its deal, E&Y agreed to continue
to cooperate with prosecutors and to keep certain restrictions on its tax practice.
The accounting firm, one of the four largest in the world, has cooperated with the
government investigation since 2004, but acknowledged in the agreement that
E&Y employees misled the Internal Revenue Service when it first began
investigating the shelters.
In a statement, E&Y said, it was pleased to put this matter from a decade ago
behind us adding that as the settlement with the US Attorneys office recognizes,
these activities represent an isolated period in the firms long history of providing
ethical and professional tax services. Indeed, the Statement of Facts that is part
of the agreement concludes with this nod to E&Y: The wrongdoing in this case by
a small group of professionals at E&Y represented a deviation from the more than
100-year history of ethical and professional conduct by E&Y and its partners.
The E&Y deal is just the latest in a long line of settlements relating to the promotion
of over the edge-tax-shelters during the late 1990s and early 2000s. In 2005,
KPMG agreed to pay what was then a record $456 million fine in a deferred
prosecution deal covering its role in promoting shelters. Deutsche Bank agreed
to pay a record $554 million in a deferred prosecution deal in 2010. And last June,
accounting firm BDO USA paid $50 million, and admitted generating $6.5 billion in
phony losses in its own deferred prosecution agreement. In a different line of tax
21
abuse cases, in February 2009, Swiss Bank UBS entered into a deferred
prosecution deal and paid $780 million in fines, for its role in helping Americans
hide assets offshore. Deferred prosecution, also known as pretrial diversion, has
been the feds preferred method of dealing with wrongdoing by prominent
corporations since the Department of Justice came under fire for causing the 2002
collapse of accounting firm Arthur Andersen, which was convicted of obstruction of
justice in the Enron scandal. This past January, Switzerlands oldest bank, Wegelin
& Co., went out of business after it was forced to plead guilty to helping to hide
$1.2 billion for American tax cheats.
In any case, wether the Articles are Negative, Or Positive reads we have to
recognize that E&Y has been on Auditing and Accounting issues since long time
on and its a Global Firm working around the world with companies like Coke,
Pepsi before the incident, Google, and many more offering their services.
But, we all now that Avoid taxes is a Crime that by the power of the law have a
sentence. Reading about cheating and helping wealthy companies to not pay taxes
and not having the punishment that they deserve isnt the image that we were
expecting to know.
You only have one chance to give a good impression, and suddenly reading 2
articles with this information of corrupted firms and companies is kind of
disappointing, also the government corruption and the power to the company with
money.
INDUSTRY BACKGROUND
As we know coke falls within the beverage industry because has a variety of soft
drinks: such as waters, enhanced waters, juices and juice drinks, ready-to-drink
teas and coffees, and energy and sports drinks, having a great competition
involved. Although we know that there are thousands of similar products for coca
cola and it does not mean they are "competition" its real competition within this
industry is Pepsi in first place. Second place Dr. Pepper, Nestle.
Look a little competition between Coke and Pepsi .
Pepsi 's birth in 1893 was the largest competition problem for the company , Coca
Cola. Although the beginnings were nothing to Pepsi positive after two consecutive
22
failures the company was acquired by a distributor of Coca Cola , who managed to
stand up to his former company.
Pepsi began an aggressive attitude, increasing the amounts of product and
reducing prices compared to Coca Cola, increasing sales
However the power of Coca Cola still prevalent in U.S. Pepsi finally managed to
catch up with Coke changing its position thanks to unify its flavor and an
aggressive advertising strategy.
The marketing strategy is mainly rely on differentiate Pepsi Cola of Coca Cola
trying to make an approach to the youth segment identifying the Coca Cola drink
with traditional parents . This approach was a tremendous success
Currently Coca -Cola and Pepsi offer similar, at the same price products, almost
always attack the same market segment and its coverage is almost identical
worldwide.
The 2 companies compete in a much wider range of products including energy
drinks, juices and even coffee and tea brands. But the more recognized for us the
Mexicans are the following:
Coca Vs. Pepsi
Coca Light Vs. Pepsi Light
Sprite Vs. 7Up
Fanta Vs.Mirinda
Coca Zero Vs. Pepsi Max
Despite the strong competition between Pepsi and Coke, Coke is what continues
to dominate the market for this style of drinks the Coca Cola Company is known for
its marketing expertise and the company has always followed a great marketing
strategy that is responsible for bringing the success to the company for over a
century. The biggest strength of Coca Cola is its brand. It has taken a lot of effort
and good strategy to create the widely known brand. Apart from this, there are
various strategies that Coca Cola has followed over the years in order to achieve
competitive advantage using its Strategic capabilities.
23
OPERATING ACTIVITIES
Coca-ColasIncomeStatement.
12 monthsended
Net operatingrevenues
Dec 31, 2013
Dec 31, 2012
46,854
48,017
-18,421
-19,053
28,433
28,964
-17,310
-17,738
-895
-447
10,228
10,779
Interest income
534
471
Interest expense
-463
-397
Equity income, net
602
819
Othe rincome (loss), net
576
137
11,477
11,809
Income taxes
-2,851
-2,723
8,626
9,086
-42
-67
8,584
9,019
Cost of goodssold
Gross profit
Operating income

Net income attribute able to non-controlling interests
Net income attribute abletoshareowners of The Coca-Cola
Company
24
Coca Colas BALANCE SHEET.

Dec 31, 2013
Cash and cash equivalents
Dec 31, 2012
10,414
8,442
6,707
5,017
17,121
13,459
Marketable securities
3,147
3,092
Trade accounts receivable, less allowances
4,873
4,759
Inventories
3,277
3,264
Prepaid expenses and other assets
2,886
2,781
2,973
Current assets
31,304
30,328
Equity method investments
10,393
9,216
Other investments, principally bottling companies
1,119
1,232
Other assets
4,661
3,585
14,967
14,476
Trademarks with indefinite lives
6,744
6,527
Bottlers' franchise rights with indefinite lives
7,415
7,405
12,312
12,255
1,140
1,150
Noncurrent assets
58,751
55,846
Total assets
90,055
86,174
Accrued marketing
2,407
2,231
3,515
2,711
1,933
1,969
933
1,045
450
389
Short-term investments
Cash, cash equivalents and short-term investments
Assets held for sale
Property, plant and equipment, net
Goodwill
Other intangible assets
25
Container deposits
339
335
9,577
8,680
16,901
16,297
1,024
1,577
309
471
796
Current liabilities
27,811
27,821
19,154
14,736
Other liabilities
3,498
5,468
6,152
4,981
28,804
25,185
Total liabilities
56,615
53,006
1,760
1,760
Capital surplus
12,276
11,379
Reinvested earnings
61,660
58,045
-3,432
-3,385
-39,091
-35,009
33,173
32,790
267
378
Total equity
33,440
33,168
90,055
86,174

Common stock, $0.25 par value

Equity attributable to shareowners of The Coca-Cola
Company
Equity attributable to non-controlling interests
26
Coca Colas Cash Flow.

12 months ended
Dec 31, 2013
Dec 31, 2012
8,626
9,086
Depreciation and amortization
1,977
1,982
Stock-based compensation expense
227
259
648
632
-201
-426
168
-130
-670
-98
465
166
Other items
234
254
28
-33
(Increase) decrease in inventories
-105
-286
(Increase) decrease in prepaid expenses and otherassets
-163
-29
Increase (decrease) in accountspayable and accrued

expenses
-158
-556
Increase (decrease) in accrued taxes
22
770
Increase (decrease) in other liabilities
-556
-946
Net change in operatingassets and liabilities
-932
-1,080
10,542
10,645
-14,782
-14,824
12,791
7,791
-353
-1,486
872
20
Equity income, net of dividends

Foreign currency adjustments
Significant (gains) losseson sales of assets, net
Other significant (gains) losses, net
(Increase) decrease in trade accounts receivable

Purchases of investments
Proceeds from disposals of investments
Acquisitions of businesses, equitymethodinvestments and
nonmarketablesecurities
Proceedsfromdisposals of businesses,
equitymethodinvestments and nonmarketablesecurities
27
Purchases of property, plant and equipment
-2,550
-2,780
111
143
-303
-268
Net cash used in investingactivities
-4,214
-11,404
Issuances of debt
43,425
42,791
Payments of debt
-38,714
-38,573
1,328
1,489
-4,832
-4,559
Dividends
-4,969
-4,595
17
100
-3,745
-3,347
-611
-255
Cash and cash equivalents, net increase (decrease)

duringtheyear
1,972
-4,361
Cash and cash equivalents, balance at beginning of year
8,442
12,803
10,414
8,442
Proceedsfromdisposals of property, plant and equipment

Other investing activities
Issuances of stock

Net cash used in financingactivities
Effect of exchangeratechangeson cash and cash
equivalents
Cash and cash equivalents, balance at end of year
28
Coca ColasConsolidatedIncomeStatement.
*This shows that Coca Cola Company decreased in the net income during the
years 2012-2013, the company has the same revenues, all the loosses are in the
operating area as you can see. They have more expenses during 2013.
12 months ended
Dec 31, 2013
Dec 31, 2012
100.00%
100.00%
Cost of godos sold
-39.32%
-39.68%
60.68%
60.32%
-36.94%
-36.94%
-1.91%
-0.93%
Operating income
21.83%
22.45%
Interest income
1.14%
0.98%
Interest expense
-0.99%
-0.83%
Equity income, net
1.28%
1.71%
Other income (loss), net
1.23%
0.29%
24.50%
24.59%
Income taxes
-6.08%
-5.67%
18.41%
18.92%
Net income attribute ableto non-controlling interests
-0.09%
-0.14%
Net income attribute abletoshareowners of The CocaCola Company
18.32%
18.78%
Gross profit
29
Consolidated Cash Flow

12 monthsended
Dec 31, 2013
Dec 31, 2012
10,542
10,645
12 monthsended
Dec 31, 2013
Dec 31, 2012
Net income from continuing operations
8,584
9,019
12 monthsended
Dec 31, 2013
Dec 31, 2012
Differenc ebetween them
1,958
1,626

Consolidated Income Statement.
30
Consolidated Balance Sheet of Financial Position, Assets.

Dec 31, 2013
5.41%
Dec 31, 2012

5.52%
31
Trade Accounts Receivable, less Allowances.- Amount due from customers or

clients, within one year of the balance sheet date (or the normal operating cycle,
which ever is longer),for goods or services (including trade receivables) that have
been delivered or sold in the normal course of business, reduced to the estimated
net realizable fair value by an allowance established by the entity of the amount it
deems uncertain of collection.
Inventories.- The Coca-Cola Company determines cost on the basis of the average
cost or first-in, first-out methods.
As it is showed in the following chart:

Dec 31, 2013
Dec 31, 2012
Raw materials and packaging
1,692
1,773
Finished goods
1,240
1,171
345
320
3,277
3,264
Other
Inventories
The income taxes on undistributed earnings of foreign subsidiaries not

deemed to be indefinitely reinvested:
Dec 31, 2013
Statutory U.S. federal taxrate
State and local incometaxes, net of federal benefit
Earnings in jurisdictionstaxed at
ratesdifferentfromthestatutory U.S. federal rate
Reversal of valuation allowances
Equity income or loss
Dec 31, 2012
35.00%
35.00%
1.00%
1.10%
-10.30%
-9.50%
-2.40%
-1.40%
-2.00%
32
CCE transaction
Sale of Norwegian and Swedishbottlingoperations
1.20%
0.40%
Other, net
-0.70%
0.50%
Effective tax rates
24.80%
23.10%
Coca-Cola Co.'s effective tax rates declined from 2011 to 2012 but then increased
from 2012 to 2013 exceeding 2011 level, as a result that can be in earnings. Their
effective tax rate reflects the tax benefits of having significant operations outside
the United States, which are generally taxed at rates lower than the U.S. statutory
rate of 35 percent. As a result of employment actions and capital investments
made by the Company, certain tax jurisdictions provide income tax incentive
grants, including Brazil, Costa Rica, Singapore and Swaziland. The terms of these
grants expire from 2015 to 2022. We expect each of these grants to be renewed
indefinitely. Tax incentive grants favorably impacted our income tax expense by
$279 million, $280 million and $193 million for the years ended December 31,
2013, 2012 and 2011, respectively. In addition, their effective tax rate reflects the
benefits of having significant earnings generated in investments accounted for
under the equity method of accounting, which are generally taxed at rates lower
than the U.S. statutory rate.
They evaluate their ability to realize the tax benefits associated with deferred tax
assets by analyzing their forecasted taxable income using both historical and
projected future operating results; the reversal of existing taxable temporary
differences; taxable income in prior carry back years; and the availability of tax
planning strategies. A valuation allowance is required to be established unless
management determines that it is more likely than not that the Company will
ultimately realize the tax benefit associated with a deferred tax asset. As of
December 31, 2013, the Companys valuation allowances on deferred tax assets
were $586 million and primarily related to uncertainties regarding the future
realization of recorded tax benefits on tax loss carry forwards generated in various
jurisdictions.
33
The Company believes it will generate sufficient future taxable income to realize
the tax benefits related to the remaining net deferred tax assets in our consolidated
balance sheets.
In 2013, proceeds from disposals of businesses, equity method investments and

nonmarketable securities were $872 million. These proceeds primarily included the
sale of a majority ownership interest in our previously consolidated Philippine
bottling operations, and separately, the deconsolidation of our Brazilian bottling
operations, purchases of property, plant and equipment net of disposals for the
years ended December 31, 2013, 2012 and 2011 were $2,439 million, $2,637
million and $2,819 million, respectively.
Net income from Operating activities.
10,542
10,645
Net income from Investing activities.
-4,214
-11,404
Net income from Financial Activities.
-3,745
-3,347
34
ANALYSIS OF OPERATING ACTIVITIES

Gross Profit Margin
Coca-Cola Co., Gross Profit Margin
Dec 31, 2013
Dec 31, 2012
Dec 31, 2011
Dec 31, 2010
Dec 31, 2009
Selected Financial Data (USD $ in millions)

Gross profit
Gross profit margin
Ratio
Gross Profit Margin
28,433
46,854
28,964
48,017
28,326
46,542
22,426
35,119
19,902
30,990
60.68%
60.32%
60.86%
63.86%
64.22%
Description
Gross profit margin
indicates the percentage
of revenue available to
cover operating and other
expenditures.
The company
Coca-Cola Co.'s gross
profit margin deteriorated
from 2011 to 2012 but
then improved from 2012
to 2013 not reaching
2011 level.
35
Operating Profit Margin
Coca-Cola Co., Operating Profit Margin

Dec 31, 2013
Dec 31, 2012
Dec 31, 2011
Dec 31, 2010
Dec 31, 2009

Operating income
10,228
46,854
10,779
48,017
10,154
46,542
8,449
35,119
8,231
30,990
21.83%
11.48%
22.45%
10.18%
21.82%
10.76%
24.06%
10.31%
26.56%
8.41%
Operating Profit Margin, Comparison to Industry

Coca-Cola Co.
Industry, Consumer Goods
Ratio
Operating Profit Margin
Description
A profitability ratio
calculated as operating
income divided by
revenue.
The company
Coca-Cola Co.'s
operating profit margin
improved from 2011 to
2012 but then slightly
deteriorated from 2012 to
2013 not reaching 2011
level.
36
Net Profit Margin

Coca-Cola Co., Net Profit Margin
Dec 31, 2013
Dec 31, 2012
Dec 31, 2011
Dec 31, 2010
Dec 31, 2009

Coca-Cola Company
8,584
46,854
9,019
48,017
8,572
46,542
11,809
35,119
6,824
30,990
18.32%
8.60%
18.78%
7.49%
18.42%
9.33%
33.63%
8.38%
22.02%
6.40%
Net Profit Margin, Comparison to Industry

Coca-Cola Co.
Ratio
Net Profit Margin
Description
The company
An indicator of
profitability, calculated as
net income divided by
revenue.
Coca-Cola Co.'s net profit

margin improved from
2011 to 2012 but then
deteriorated significantly
from 2012 to 2013.
37
Receivables turnover
Coca-Cola Co., Receivables Turnover
Dec 31, 2013
Dec 31, 2012
Dec 31, 2011
Dec 31, 2010
Dec 31, 2009

46,854
4,873
48,017
4,759
46,542
4,920
35,119
4,430
30,990
3,758
9.62
12.70
10.09
11.74
9.46
13.36
7.93
12.24
8.25
13.79
Receivables Turnover, Comparison to Industry

Coca-Cola Co.
Ratio
Receivables Turnover
Description
An activity ratio equal to
revenue divided by
receivables.
The company
Coca-Cola Co.'s
receivables turnover
2012 but then slightly
2013 not reaching 2011
level.
38
Inventory Turnover
Coca-Cola Co., Inventory Turnover
Dec 31, 2013
Dec 31, 2012
Dec 31, 2011
Dec 31, 2010
Dec 31, 2009

Cost of goods sold
Inventories
18,421
3,277
19,053
3,264
18,216
3,092
12,693
2,650
11,088
2,354
5.62
6.79
5.84
6.63
5.89
7.33
4.79
6.94
4.71
6.85
Inventory Turnover, Comparison to Industry

Coca-Cola Co.
Ratio
Inventory turnover
Description
The company
An activity ratio calculated Coca-Cola Co.'s
as cost of goods sold
inventory turnover
divided by inventory.
2012 and from 2012 to
2013.
39
Total asset turnover

Coca-Cola Co., Total Asset Turnover
Dec 31, 2013
Dec 31, 2012
Dec 31, 2011
Dec 31, 2010
Dec 31, 2009

Total assets
46,854
90,055
48,017
86,174
46,542
79,974
35,119
72,921
30,990
48,671
0.52
0.73
0.56
0.72
0.58
0.75
0.48
0.73
0.64
0.75
Total Asset Turnover, Comparison to Industry

Coca-Cola Co.
Ratio
Total asset turnover
Description
An activity ratio
calculated as total
revenue divided by total
assets.
The company
Coca-Cola Co.'s total
asset turnover
2012 and from 2012 to
2013.
40
Equity Turnover
Coca-Cola Co., Equity Turnover
Dec 31, 2013
Dec 31, 2012
Dec 31, 2011
Dec 31, 2010
Dec 31, 2009

Equity attributable to shareowners of The CocaCola Company
46,854
48,017
46,542
35,119
30,990
33,173
32,790
31,635
31,003
24,799
1.41
2.32
1.46
2.34
1.47
2.37
1.13
2.36
1.25
2.58
Equity Turnover, Comparison to Industry

Coca-Cola Co.
Ratio
Equity turnover
Description
An activity ratio calculated
as total revenue divided
by shareholders' equity.
The company
Coca-Cola Co.'s equity
turnover deteriorated from
2011 to 2012 and from
2012 to 2013.
Information was found in: http://www.stock-analysis-on.net/NYSE/Company/Coca-Cola-Co/Profile
41
INVESTING ACTIVITIES
Cash Equivalents
The Coca-Cola Company classifies time deposits and other investments that are
highly liquid and have maturities of three months or less at the date of purchase as
cash equivalents. The Coca-Cola Company manages exposure to counterparty
credit risk through specific minimum credit standards, diversification of
counterparties and procedures to monitor credit risk concentrations.
Short-Term Investments
The Coca-Cola Company classifies time deposits and other investments that have
maturities of greater than three months but less than one year as short-term
investments.
Investments in Equity and Debt Securities
The Coca-Cola Company uses the equity method to account for investments in
equity securities if investment gives The Coca-Cola Company the ability to
exercise significant influence over operating and financial policies of the investee.
The Coca-Cola Company includes proportionate share of earnings and/or losses of
equity method investees in equity income (loss) net in consolidated statements
of income. The carrying value of The Coca-Cola Company's equity investments is
reported in equity method investments in consolidated balance sheets.
The Coca-Cola Company accounts for investments in companies that The CocaCola Company does not control or accounts for under the equity method either at
fair value or under the cost method, as applicable. Investments in equity securities,
other than investments accounted for under the equity method, are carried at fair
value if the fair value of the security is readily determinable. Equity investments
carried at fair value are classified as either trading or available-for-sale securities
with their cost basis determined by the specific identification method. Realized and
unrealized gains and losses on trading securities and realized gains and losses on
available-for-sale securities are included in other income (loss) net in The CocaCola Company's consolidated statements of income. Unrealized gains and losses,
net of deferred taxes, on available-for-sale securities are included in The CocaCola Company's consolidated balance sheets as a component of accumulated
other comprehensive income (loss) ("AOCI"). Trading securities are reported as
either marketable securities or other assets in The Coca-Cola Company's
consolidated balance sheets. Securities classified as available-for-sale are
reported as either marketable securities, other investments or other assets in
42
consolidated balance sheets, depending on the length of time The Coca-Cola

Company intends to hold the investment.
Investments in equity securities that The Coca-Cola Company does not control or
accounts for under the equity method and does not have readily determinable fair
values for are accounted for under the cost method. Cost method investments are
originally recorded at cost and The Coca-Cola Company records dividend income
when applicable dividends are declared. Cost method investments are reported as
other investments in The Coca-Cola Company's consolidated balance sheets, and
dividend income from cost method investments is reported in the line item other
income (loss) net in consolidated statements of income.
The Coca-Cola Company's investments in debt securities are carried at either
amortized cost or fair value. Investments in debt securities that the Company has
the positive intent and ability to hold to maturity are carried at amortized cost and
classified as held-to-maturity.
Investments in debt securities that are not classified as held-to-maturity are carried
at fair value and classified as either trading or available-for-sale.
Each reporting period The Coca-Cola Company reviews all of investments in equity
and debt securities, except for those classified as trading, to determine whether a
significant event or change in circumstances has occurred that may have an
adverse effect on the fair value of each investment. When such events or changes
occur, The Coca-Cola Company evaluates the fair value compared to cost basis in
the investment. The Coca-Cola Company also performs this evaluation every
reporting period for each investment for which cost basis exceeded the fair value in
the prior period. The fair values of most of The Coca-Cola Company's investments
in publicly traded companies are often readily available based on quoted market
prices. For investments in non-publicly traded companies, management's
assessment of fair value is based on valuation methodologies including discounted
cash flows, estimates of sales proceeds and appraisals, as appropriate. The CocaCola Company considers the assumptions that The Coca-Cola Company believes
hypothetical marketplace participants would use in evaluating estimated future
cash flows when employing the discounted cash flow or estimates of sales
proceeds valuation methodologies.
In the event the fair value of an investment declines below The Coca-Cola
Company's cost basis, management determines if the decline in fair value is other
than temporary. If management determines the decline is other than temporary, an
impairment charge is recorded. Management's assessment as to the nature of a
decline in fair value is based on, among other things, the length of time and the
43
extent to which the market value has been less than The Coca-Cola Company's
cost basis, the financial condition and near-term prospects of the issuer, and intent
and ability to retain the investment for a period of time sufficient to allow for any
anticipated recovery in market value.
Source: Coca-Cola Co., Annual Report
44
Item
Non-Current Assets
Description
Sum of the carrying amounts
as of the balance sheet date
of all assets that are
expected to be realized in
cash, sold or consumed
after one year or beyond the
normal operating cycle, if
longer.
Coca Cola Company

Coca-Cola Co.'s noncurrent
assets increased from 2011
to 2012 and from 2012 to
2013.
Coca-Cola Co., Consolidated Statement of Financial Position, Assets

USD $ in millions

Cash, cash equivalents and short-term
investments
Marketable securities
Inventories
Current assets
Other assets
Trademarks with indefinite lives
Goodwill
Noncurrent assets
Total assets
Dec 31, 2013

10,414
6,707
Dec 31, 2012

8,442
5,017
17,121
3,147
4,873
3,277
2,886
31,304
10,393
1,119
4,661
14,967
6,744
7,415
12,312
1,140
58,751
90,055
13,459
3,092
4,759
3,264
2,781
2,973
30,328
9,216
1,232
3,585
14,476
6,527
7,405
12,255
1,150
55,846
86,174
Source: Coca-Cola Co., Annual Reports
45
Non Current Assets

60,000
58,000
56,000
54,000
Non Current Assets
52,000
50,000
48,000
46,000
2010
2011
2012
2013
Coca-Cola Co., Common-Size Consolidated Statement of Financial Position,

Assets

Cash, cash equivalents and short-term
investments
Market able securities
Inventories
Current assets
Other assets
Trade marks within definite lives
Goodwill
Non-current assets
Total assets
Dec 31, 2013 Dec 31, 2012

11.56%
9.80%
7.45%
5.82%
19.01%
15.62%
3.49%
5.41%
3.64%
3.20%
34.76%
11.54%
1.24%
5.18%
16.62%
7.49%
8.23%
13.67%
1.27%
65.24%
100.00%
3.59%
5.52%
3.79%
3.23%
3.45%
35.19%
10.69%
1.43%
4.16%
16.80%
7.57%
8.59%
14.22%
1.33%
64.81%
100.00%
46
Non-Current Assets
36.00%
35.00%
34.00%
33.00%
32.00%
31.00%
30.00%
29.00%
28.00%
27.00%
26.00%
Non-Current Assets
2010
2011
2012
2013
(As a Percentage)
47
The Coca-Cola Company (KO)

Cash Flow.(Thousands)
PeriodEnding
Dec 31, 2013
Dec 31, 2012
Dec 31, 2011
Net Income
8,584,000
9,019,000
8,584,000
1,977,000
1,982,000
1,954,000
Operating Activities, Cash Flows Provided By or Used In

Depreciation
AdjustmentsTo Net Income
871,000
657,000
767,000
Changes In AccountsReceivables
Changes In Liabilities
Changes In Inventories
Changes In Other Operating Activities

Total Cash Flow From Operating Activities
(932,000)
10,542,000
(1,080,000)
10,645,000
(1,893,000)
9,474,000
Investing Activities, Cash Flows Provided By or Used In

Capital Expenditures
(2,550,000)
(2,780,000)
(2,920,000)
Investments
(1,991,000)
(7,033,000)
1,013,000
327,000
(1,591,000)
(617,000)
(4,214,000)
(11,404,000)
(2,524,000)
Dividends Paid
(4,969,000)
(4,595,000)
(4,300,000)
Sale Purchase of Stock
(3,504,000)
(3,070,000)
(2,944,000)
Net Borrowings
4,711,000
4,218,000
4,965,000
17,000
100,000
45,000
Other Cash flows from Investing Activities

Total Cash Flows From Investing Activities
Financing Activities, Cash Flows Provided By or Used In
Other Cash Flows from Financing Activities

Total Cash Flows From Financing Activities
Effect Of Exchange Rate Changes
Change In Cash and Cash Equivalents
(3,745,000)
(3,347,000)
(2,234,000)
(611,000)
(255,000)
(430,000)
1,972,000
(4,361,000)
4,286,000
48
ANALYSIS OF INVESTIG ACTIVITIES

Ratio
Description
Coca Cola
ROA
calculated as adjusted net
income divided by total
assets.
Coca-Cola Co.'s adjusted

ROA deteriorated from
2012 to 2013.
Companys Rate of Return (Accrual Basis)
Formula: (expressed in percentage)
Coca-Cola Co., Adjusted Return On Assets (ROA)

Dec 31, 2013
Dec 31, 2012
As Reported
Coca-Cola Company (USD $ in millions)
Total assets (USD $ in millions)
8,584
90,055
9,019
86,174
ROA
9.53%
10.47%
Adjusted net income attributable to shareowners of

The Coca-Cola Company (USD $ in millions)
Total assets (USD $ in millions)
8,504
90,055
9,197
86,174
Adjusted ROA
9.44%
10.67%
Adjusted: Mark to Market Available-for-sale Securities
Coca Cola 2013

Net Incomeadjusted: $8,504,000
Total Assets: $90,055,000
Substitution
49
100 8,504 90,055 = 9.44
Companys Rate of Return (Cash Flow Basis)

Item
Description
Net cash provided by The net cash from (used
operating activities
in) all of the entity's
operating
activities,
including
those
of
discontinued operations,
of the reporting entity.
Operating
activities
generally
involve
producing and delivering
goods
and
providing
services.
Operating
activity cash flows include
transactions,
adjustments,
and
changes in value that are
not defined as investing
or financing activities.
Coca Cola
Coca-Cola Co.'s net cash
provided by operating
activities increased from
slightly declined from
2012 to 2013.
( )
Google 2012
: $10,645,000
Total Assets: $86,174,000
( )
Cash Return on Assets= 12.35%
Coca Cola 2013

Cash Flow from Operating Activities: $10,542,000
50
Total Assets:$90,055,000
( )
Cash Return on Assets= 11.71%
51
These two measurements tell us how well the company is running. The ROA
shows how profitable companys assets are in generating revenue. In addition, the
Cash Return on Assets measures the Cash Flow from Operations in the relation to
Total Assets.
We think the ROA is more indicative on the firms financial performance because
it shows how much revenue Coke is able to generate and how much money goes
to the company. In addition the Cash Return on Assets as our point of view it is
extremely important, for the company and especially for those that interested in
investing on the Company.
With this measure, the company will be able to see how efficient is being.
Moreover, this is something that could be attractive for the regular investor,
because it tells them the financial skills that the company have.
These results show us that the company is going on good track. Although
comparing these measures with the industry the ROA is a bit down than for
example PepsiCo that is in the same beverage industry.
We believe this is a good result, because the industry that we are talking about is
Beverage and Coca Cola is a company leading in this industry, the companies
competing arent as strong as this company known worldwide. Lets remember that
Coke sells soft drinks like Coke, Sprite, Powerade etc. It is a very strong
competitive company, but the advantage that PepsiCo has is that they also sell
Sabritas etc. that makes them have more revenues because they offer more
products. But Coke is a leading company and has a great prestige since many
years.
This information could be useful to the purchase of another company, the
constructions of new buildings, offices, stores etc. This information could either
convince an investor or make him change his mind.
52
Operating Profits by Product Lines

The Coca-Cola Company (NYSE: KO) is the worlds largest manufacturer,
distributor, and marketer of non-alcoholic beverage concentrates and syrups.
Based in Atlanta, Georgia, KO sells concentrated forms of its beverages to bottlers
who then produce, package, and sell the finished products to retailers. The CocaCola Company operates in over 200 countries and sells more than 400 different
brands that produce over 3000 different products, including the famous Coca-Cola
and Sprite lines of soft drinks.
Growing consumer preference for healthier drinks and increasingly saturated
markets has resulted in slowing growth rates for sales of carbonated soft drinks
(abbreviated as CSD), which constitutes 78% of KOs sales. KOs profits are also
vulnerable to the volatile costs for the raw materials used to make drinks - the corn
syrup used as a sweetener, the aluminum used in cans, and the plastic used in
bottles. Furthermore, decreased consumer spending in Coke's large North
American market compounds the challenge of rising costs and a weak economic
environment.[3] Finally, Coca-Cola earns approximately 75% of revenue from
international sales, exposing it to currency fluctuations, which are particularly
adverse with a stronger U.S. Dollar (USD).
Despite these challenges, Coca-Cola has remained profitable. Though the nonCSD market is growing quickly, the traditional CSD market is still large in terms of
both revenues and volume and highly lucrative. The size and variety of KOs
offerings in the CSD category, coupled with the unparalleled brand equity of the
Coca-Cola trademark, has allowed KO to maintain its share of this important
market. KO has also responded to consumers changing tastes with new, non-CSD
product launches and acquisitions such as that of Glaceau. Strong international
growth has also more than offset a weak domestic market.
53
54
Debt Financing.
Coca-Colas Balance Sheet.
Dec 31, 2013
Dec 31, 2012
Accrued marketing
2.407
2.231
3.515
2.711
1.933
1.969
933
1.045
450
389
Container deposits
339
335
9.577
8.680
55
Item
Description
The company
16.901
16.297
1.024
1.577
309
471
796
Current liabilities
27.811
27.821
19.154
14.736
Other liabilities
3.498
5.468
6.152
4.981
28.804
25.185
Total liabilities
56.615
53.006
The statement of financial position provides creditors, investors, and analysts with
information on company's resources (assets) and its sources of capital (its equity
and liabilities). It normally also provides information about the future earnings
capacity of a company's assets as well as an indication of cash flows that may
come from receivables and inventories.
Liabilities represent obligations of a company arising from past events, the
settlement of which is expected to result in an outflow of economic benefits from
the entity.
56
Tradeaccountspayable
Carrying value as of the balance sheet

date of liabilities incurred (and for which
invoices have typically been received) and
payable to vendors for goods and
services received that are used in an
entity's business. Used to reflect the
current portion of the liabilities (due within
one year or within the normal operating
cycle if longer).
Coca-Cola
Co.'s
trade
accounts
payable declined
from 2011 to 2012
and from 2012 to
2013.
Currentliabilities
Total obligations incurred as part of

normal operations that are expected to be
paid during the following twelve months or
within one business cycle, if longer.
Coca-Cola
Co.'s
current
liabilities
increased
from
2011 to 2012 but
then
slightly
declined
from
2012 to 2013.
Noncurrentliabilities
Total obligations incurred as part of

normal operations that is expected to be
repaid beyond the following twelve
months or one business cycle.
Coca-Cola
Co.'s
noncurrent
liabilities increased
from 2011 to 2012
and from 2012 to
2013.
57
58
Coca-Cola Co., Common-Size Consolidated Income Statement
Interestincome
1,14%
0,98%
Interest expense
-0,99%
-0,83%
Equityincome, net
1,28%
1,71%
Otherincome (loss), net
1,23%
0,29%
24,50%
24,59%
Incomebeforeincometaxes
Obligations over the next five years.
Coca-Cola Co., Statement of Financial Position, Debt

USD $ in millions
Dec 31, 2013

Dec 31, 2012
16.901
16.297
1.024
1.577
19.154
14.736
Total debt
37.079
32.610
59
In 2012, Coca Cola had a debt of 14.73 in long term, that the next year (2013) we
can see the debt increase to 19.15.
As of December 31, 2013, the Company had $6,410 million in lines of credit for
general corporate purposes. These backup lines of credit expire at various times
from 2014 through 2018. There were no borrowings under these backup lines of
credit during2013. These credit facilities are subject to normal banking terms and
conditions. Some of the financial arrangements requirecompensating balances.
Deferred income tax liabilities as of December 31, 2013, were $6,491 million. Refer
to Note 14 of Notes to Consolidated Financial Statements. This amount is not
included in the total contractual obligations table because we believe that
presentation would not be meaningful. Deferred income tax liabilities are calculated
based on temporary differences between the tax bases of assets and liabilities and
60
their respective book bases, which will result in taxable amounts in future years
when the liabilities are settled at their reported financial statement amounts. The
results of these calculations do not have a direct connection with the amount of
cash taxes to be paid in any future periods. As a result, scheduling deferred
income tax liabilities as payments due by period could be misleading, because this
scheduling would not relate to liquidity needs.
Pension and Other Postretirement Benefit Plans

Coca-Colas Company sponsors and/or contributes to pension and postretirement
health care and life insurance benefit plans covering substantially all U.S.
employees. They also sponsor nonqualified, unfunded defined benefit pension
plans for certain associates and participate in multi-employer pension plans in the
United States. In addition, the Company and its subsidiaries have various pension
plans and other forms of postretirement arrangements outside the United States.
Debt Financing
Issuances and payments of debt included both short-term and long-term financing
activities. On December 31, 2013, they had $6,410 million in lines of credit
available for general corporate purposes. These backup lines of credit expire at
various times from 2014 through 2018. There were no borrowings under these
backup lines of credit during 2013. These credit facilities are subject to normal
banking terms and conditions.
Coca-Cola in 2013 made payments of $38,714 million, which included $70 million
of net payments of commercial paper and short-term debt with maturities of 90
days or less, $35,199 million of payments of commercial paper and short-term debt
with maturities greater than 90 days and long-term debt payments of $3,445
million. The long-term debt payments included the extinguishment of $2,154 million
of long-term debt prior to maturity, which resulted in associated charges of $53
million, including hedge accounting adjustments reclassified from accumulated
other comprehensive income, in the line item interest expense in our consolidated
statement of income during the year ended December 31, 2013.
61
Coca-Colas Cash Flow (Financial Activies)

12 monthsended Dec 31, 2013
Dec 31, 2012
Issuances of debt
43.425
42.791
Payments of debt
-38.714
-38.573
1.328
1.489
-4.832
-4.559
Dividends
-4.969
-4.595
17
100
-3.745
-3.347
Issuances of stock

Net cash used in financing activities
Contigent Liabilities.
The Company has numerous global insurance programs in place to help protect
the Company from the risk of loss. In general, we are self-insured for large portions
of many different types of claims; however, we do use commercial insurance above
our self-insured retentions to reduce the Companys risk of catastrophic loss. Our
reserves for the Companys self-insured losses are estimated through actuarial
62
procedures of the insurance industry and by using industry assumptions, adjusted

for our specific expectations based on our claim history. The Companys selfinsurance reserves totaled $537 million and $508 million as of December 31, 2013
and 2012, respectively.
The following table summarizes our minimum lease payments under noncancelable operating leases with initial or remaining lease terms in excess of one
year as of December 31, 2013 (in millions):
As of December 31, 2013, we were contingently liable for guarantees of

indebtedness owed by third parties of $662 million, of which $288 million was
related to VIEs. Refer to Note 1 for additional information related to the Companys
maximum exposure to loss due to our involvement with VIEs. Our guarantees are
primarily related to third-party customers, bottlers, vendors and container
manufacturing operations and have arisen through the normal course of business.
We establish reserves for specific legal proceedings when we determine that
the likelihood of an unfavorable outcome is probable and the amount of loss can be
reasonably estimated. Management has also identified certain other legal matters
where we believe an unfavorable outcome is reasonably possible and/or for which
no estimate of possible losses can be made. Management believes that the total
liabilities to the Company that may arise as a result of currently pending legal
proceedings will not have a material adverse effect on the Company taken as a
whole.
Does Coca-Cola have a financial well-being?
The information shows that in debts, Coca-Cola increased talking about the long
term debts, but you can also see that in the prediction they have for the next years
is that in debt, they are going to go down, which means that financially, they are
going to be good by time and you can see also that they know how to manage the
payments they have to do.
63
EQUITY FINANCING.
Leverage ratio indicating the relative proportion of shareholders' equity and debt
used to finance a company's assets. A low debt to equity ratio indicates lower risk,
because debt holders have less claims on the company's assets. A debt to equity
ratio of 5 means that debt holders have a 5 times more claim on assets than equity
holders.
A high debt to equity ratio usually means that a company has been aggressive in
financing growth with debt and often results in volatile earnings.
Calculation: Debt to Equity = (Long Term Debt + Current Portion of Long Term
Debt) / Total Shareholders' Equity
USD $ in millions.
Dec 31, 2013
Dec 31, 2012
Accrued marketing
2,407
2,231
3,515
2,711
1,933
1,969
933
1,045
450
389
Container deposits
339
335
9,577
8,680
Accounts payable and

accrued expenses
16,901
16,297
1,024
1,577
309
471
796
Current liabilities
27,811
27,821
19,154
14,736
Other liabilities
3,498
5,468
6,152
4,981
28,804
25,185
56,615
53,006
1,760
1,760
Capital surplus
12,276
11,379
Reinvested earnings
61,660
58,045
Total liabilities
Common stock, $0.25 parvalue
64

Equity attributable to
shareowners of The Coca-Cola
Company
Equity attributable to non-controlling
interests
Total equity
(3,432)
(3,385)
(39,091)
(35,009)
33,173
32,790
267
378
33,440
33,168
90,055
86,174
We record changes in the fair value like gains or losses of the derivatives in the
accompanying Consolidated Statements of income as interest and other income,
net, as part of revenues, or as a component of accumulated other comprehensive
income (AOCI) in the accompanying Consolidated Balance Sheets.
Coca-Cola Co.'s net operating revenues increased from 2011 to 2012 but
then slightly declined from 2012 to 2013 not reaching 2011 level.
Coca-Cola Co.'s operating income increased from 2011 to 2012 but then
slightly declined from 2012 to 2013 not reaching 2011 level.
Coca-Cola Co.'s income before income taxes increased from 2011 to 2012
but then slightly declined from 2012 to 2013 not reaching 2011 level.
Coca-Cola Co.'s consolidated net income increased from 2011 to 2012 but
then declined significantly from 2012 to 2013.
Coca-Cola Co.'s net income attributable to shareowners of The Coca-Cola
Company increased from 2011 to 2012 but then slightly declined from 2012
to 2013 not reaching 2011 level.
Business enters into foreign currency contracts with financial institutions to reduce
the risk that cash flows and earnings will be adversely affected by foreign currency
exchange rate fluctuations. Use certain interest rate derivative contracts to hedges
interest rate exposures on our fixed income securities and our anticipated debt
issuance.
65
TOTAL EQUITY
Total of Stockholders'
Equity (deficit) items, net
of receivables from
officers, directors owners,
and affiliates of the entity
including portions
attributable to both the
parent and noncontrolling
interests (previously
referred to as minority
interest), if any. The entity
including portions
attributable to the parent
and noncontrolling
interests is sometimes
referred to as the
economic entity.
Coca-Cola Co.'s total

equity increased from
2012 to 2013.
Our Company uses derivative financial instruments primarily to reduce our

exposure to adverse fluctuations in foreign currency exchange rates and, to a
lesser extent, adverse fluctuations in interest rates and commodity prices and other
market risks. We do not enter into derivative financial instruments for trading
purposes. As a matter of policy, all our derivative positions are used to reduce risk
by hedging an underlying economic exposure. Because of the high correlation
between the hedging instrument and the underlying exposure, fluctuations in the
value of the instruments are generally offset by reciprocal changes in the value of
the underlying exposure. Virtually all of our derivatives are straightforward, overthe-counter instruments with liquid markets.
Foreign Exchange
We manage most of our foreign currency exposures on a consolidated basis,
which allows us to net certain exposures and take advantage of any natural offsets.
In 2005, we generated approximately 71 percent of our net operating revenues
from operations outside of our North America operating group; therefore, weakness
in one particular currency might be offset by strengths in others over time. We use
derivative financial instruments to further reduce our net exposure to currency
fluctuations.
66
Our Company enters into forward exchange contracts and purchases currency
options (principally euro and Japanese yen) and collars to hedge certain portions
of forecasted cash flows denominated in foreign currencies.
Additionally, we enter into forward exchange contracts to offset the earnings impact
relating to exchange rate fluctuations on certain monetary assets and liabilities. We
also enter into forward Exchange contracts as hedges of net investments in
international operations.
Interest Rates
We monitor our mix of fixed-rate and variable-rate debt, as well as our mix of term
debt versus non-term debt. From time to time we enter into interest rate swap
agreements to manage our mix of fixed-rate and variable-rate debt.
Comparise Last Balance Sheet.
PeriodEnding
Mar 28, 2014
Dec 31, 2013
Cash And Cash Equivalents
9,131,000
10,414,000
Short Term Investments
10,302,000
9,854,000
Net Receivables
5,233,000
4,873,000
Inventory
3,357,000
3,277,000
Other Current Assets
3,029,000
2,886,000
Total Curren tAssets
31,052,000
31,304,000
Long Term Investments
13,127,000
11,512,000
Property Plant and Equipment
14,860,000
14,967,000
Goodwill
12,343,000
12,312,000
Intangible Assets
15,252,000
15,299,000
Accumulated Amortization
67
Other Assets
4,655,000
4,661,000
Deferred Long Term Asset Charges
Total Assets
91,289,000
90,055,000
Accounts Payable
10,255,000
9,886,000
Short/Current Long Term Debt
19,801,000
17,925,000
Other Current Liabilities
Total Current Liabilities
30,056,000
27,811,000
Long Term Debt
18,640,000
19,154,000
Other Liabilities
3,414,000
3,498,000
Deferred Long Term Liability Charges
6,257,000
6,152,000
Minority Interest
268,000
267,000
Negative Goodwill
Total Liabilities
58,635,000
56,882,000
Misc Stocks Options Warrants
Redeemable Preferred Stock
Preferred Stock
Common Stock
1,760,000
1,760,000
Retained Earnings
61,937,000
61,660,000
Treasury Stock
(39,781,000)
(39,091,000)
Capital Surplus
12,332,000
12,276,000
Other Stockholder Equity
(3,594,000)
(3,432,000)
Total Stockholder Equity
32,654,000
33,173,000
Net Tangible Assets
5,059,000
5,562,000
68
Value-at-Risk and Significant Equity Financing Activities.

We monitor our exposure to financial market risks using several objective
measurement systems, including value-at-risk models. Our value-at-risk
calculations use a historical simulation model to estimate potential future losses in
the fair value of our derivatives and other financial instruments that could occur as
a result of adverse movements in foreign currency and interest rates. We have not
considered the potential impact of favorable movements in foreign currency and
interest rates on our calculations. We examined historical weekly returns over the
previous 10 years to calculate our value-at-risk. The average value-at-risk
represents the simple average of quarterly amounts over the past year.
As a result of our foreign currency of Equity Financing calculations, we estimate
with 95 percent confidence that the fair values of our foreign currency derivatives
and other financial instruments, over a one-week period, would decline by less
than $9 million, $17 million and $26 million, respectively, using 2011, 2012 or 2013
average fair values, and by less than $9 million and $18 million, respectively, using
December 31, 2012 and 2013 fair values. According to our interest rate value-atrisk calculations, we estimate with 95 percent confidence that any increase in our
net interest expense due to an adverse move in our 2012 average or in our
December 31, 2013, interest rates over a one-week period would not have a
material impact on our consolidated financial statements. Our December 31, 2013
estimates also were not material to our consolidated financial statements.
69
ANALYSIS OF FINANCING ACTIVITIES.

Coca-Cola, Consolidated Statement of
Stockholders Equity USD $ in millions.
Financial Position, Liabilities and
Mar 28, 2014

30,056,000
28,579,000
58,635,000
32,654,000
91,289,000
Current Liabilities
Non-current liabilities
Total liabilities
Stockholders equity
Total liabilities and
stockholders equity.
Dec 31, 2013

27,811,000
29,071,000
56,882,000
33,173,000
90,055,000
We can see in the chart that Coca-Cola has that much of liabilities is telling us that
they are investing on its operating activities in order to keep getting more revenue.
But in this case the stockholders are receiving less quantity that we get in the total
liabilities. In my opinion Coca Cola is going great. Their results are more and better
over the years. Coca-Cola hasnt made any material changes in capital structure in
the past two years.
STOCK EXCHANGE: NYSE, KO

$40.95
0.17 (0.42%)
Open
Day High
52-Wk High
$40.79
$40.96
$43.43
Shares Outstanding
Volume
Prev. Close
Day Low
52-Wk Low
4,395,183,000
14,197,800
$40.78
$40.63
$36.83
70
Rate of Return on Total Assets.

Ratio
Description
calculated as net income
divided by total assets.
ROA
ROA% =
The Company
Coca-Cola Co.'s ROA
deteriorated from
Q3 2013 to Q4 2013 and
from Q4 2013 to
Q1 2014.
NET INCOME___ (100)

TOTAL ASSETS
Coca-Cola K.O 2013

Net Income = 8,584,000
Total Assets= 90,055,000
ROA%=
(100)
ROA = 9.53%
Coca-Cola K.O 2012

ROA%=
(100)
ROA= 10.46%
71
Rate of Return on Total Stockholders Equity

Ratio
Description
calculated as net income
divided by shareholders'
equity.
ROE
ROE% =
The Company
Coca-Cola Co.'s ROE
2012 but then
deteriorated significantly
from 2012 to 2013.
NET INCOME___ (100)
STOCKHOLDERS EQUITY
Coca-Cola K.O 2013

ROE%=
(100)
ROE = 25.87%
Coca-Cola K.O 2012

ROE%=
(100)
ROE = 26.17%
72
Dividend Payout Ratio
Dividend Payout Ratio =
DIVIDENDS___
NET INCOME
Coca-Cola K.O 2013

Dividend Payout Ratio=
Dividend Payout Ratio = 1.89
Coca-Cola K.O 2012

Dividend Payout Ratio=
Dividend Payout Ratio = 2.72
In dividends investing, Payout Ratio and Dividend Growth Rate are the two most
important variables for consideration. A lower payout ratio may indicate that the
company has more room to increase its dividends.
73
Financial Ratios
Ratio
Description
A liquidity ratio calculated
as current assets divided
by current liabilities.
Current Ratio
Current Ratio =
The Company
Coca-Cola Co.'s current
ratio improved from 2011
to 2012 and from 2012 to
2013.
CURRENT ASSETS___
CURRENT LIABILITIES
Coca-Cola K.O 2013

Current Assets = 31,304,000
Current Liabilities= 27,811,000
Current Ratio=
Current Ratio = 1.12
Coca-Cola K.O 2012

Current Ratio=
Current Ratio = 1.09
74
Ratio
Description
A liquidity ratio calculated
as (cash plus short-term
marketable investments
plus receivables) divided
by current liabilities.
Quick Ratio
Quick Ratio =
The Company
Coca-Cola Co.'s quick
ratio deteriorated from
2013 exceeding 2011
level.
CURRENT ASSETS-INVENTORY___
CURRENT LIABILITIES
Coca-Cola K.O 2013

Inventory= 6,163,000
Current Ratio=
Quick Ratio = .90
Coca-Cola K.O 2012

Inventory= 9,994,000
Current Ratio=
Quick Ratio = .76
75
Ratio
Debt-to-Equity Ratio
Description
A solvency ratio
calculated as total debt
divided by total
shareholders' equity.
Debt-to-Equity Ratio =
The Company
Coca-Cola Co.'s debt-toequity ratio deteriorated
from 2011 to 2012 and
from 2012 to 2013.
TOTAL LIABILITIES___
STOCKHOLDERS EQUITY
Coca-Cola K.O 2013

Total Liabilities= 37,079,000
Stockholders Equity = 33,173,000
Debt-to-Equity Ratio=
Debt-to-Equity Ratio = 1.12
Coca-Cola K.O 2013

Total Liabilities= 32,610,000
Stockholders Equity = 32,790,000
Debt-to-Equity Ratio=
Debt-to-Equity Ratio = .99
76
Financial Ratios
In the Company that we chose Coca-Cola KO. I think the most important ratios for
the investors are the ROA and the Cash Return on Assets in order to check out the
Companys activities and how well its managing its money.
The ratio that in my opinion its more interested to the investors is the ROE, and
with this ratios results we can tell that investors would be very interested on invest
in this company because the results have been good.
The other ratios that we already calculated tell us that Coca-Cola KO. Has been
doing a good Financial job. Which this is very attractive to the investors, because
no one wants to invest on a company that does not manage its capital well. In
addition, Coca-Cola KO. Has demonstrated that is a very efficient company with all
the potencial to win to different benchmarks.
77
COMPARISON TO INDUSTRY BENCHMARKS

Comparing Coca-Cola, we have another globally important benchmarks like Pepsi,
first the different flavors that they have for example Coca-cola has Coca-Cola, New
Coke which was renamed Coke II, Diet Coke (also known as Coca-Cola Light),
Diet Coke Plus, Coca-Cola C2, Coca-Cola Zero, Coca-Cola Cherry Zero, Caffeine
Free Coca-Cola, Caffeine Free Diet Coke etcetera and in the other hand Pepsi has
Pepsi Diet, Pepsi, Pepsi max, Pepsi One, Caffeine Free Pepsi, Caffeine free Diet
Pepsi, Pepsi Throwback, and Pepsi Next. Prices for coke and pepsi vary by the
flavor and size.
Talking about numbers over the last several years, Coca Cola stock has
significantly outperformed Pepsico. In fact since 2005, Coke's stock price has
gained 35%, while Pepsi eked out only a marginal 3% gain. If you take into account
dividend payments, Coke delivered a 52% return to investors while Pepsi's 13%
return paled in comparison. Coca Cola's market cap is currently 33% higher than
Pepsi's.
Pepsi and Coke both offer similar dividend yields of 3%. Although Pepsi's dividend
payout ratio is slightly lower than Coca Cola's, the difference is marginal.
Since the end of the 19th century, Pepsi and Coca-Cola have been making
slugging it out over the hearts, minds, and wallets of the world's soda drinkers. On
the surface, the two companies look similar given that they both are valued at
around 17 times their future expected earnings.
78
Coca-Cola
PepsiCo
Market Cap
$173 billion
$125 billion
Revenues
$47 billion
$66 billion
Profit Margin
18.5%
10.1%
Return on Equity
26.7%
30.5%
Net Income
$8.7 billion
$6.7 billion
Price to Forward Earnings
17.6x
17.3x
79
80
CONCLUSIONS
Alexia Karina Gmez Vlez
id 1549372
In this project we learned that The Coca-Cola Company is the worlds largest
beverage company. Along with Coca-Cola, recognized as the worlds most
valuable brand, the Company markets four of the worlds top five nonalcoholic
sparkling brands. Through the worlds largest beverage distribution system,
consumers in more than 200 countries enjoy the Companys beverages at a rate of
1.5 billion servings each day.
We have audited The Coca-Cola Companys internal control over financial
reporting as of December 31, 2012 and 2013. The Coca-Cola Companys
management is responsible for maintaining effective internal control over financial
reporting.
I think a companys internal control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles.
How we can see in this project and the financial reports during the last 2 years, we
notice that 2012 was better than 2013, comparing the results, but not by much
difference, in my opinion this is just about has new actions plans for the following
years to make the company move faster and better than other benchmarks.
In conclusion I think, The Coca-Cola Company maintained, in all material respects,
effective internal control over financial reporting.
81
Leonel Alan Mota Garza. 1555877.

As we can see in this Project, we saw a lot of points referring to Coca-Colas
company, looking for its financial position, viewing where they are, where they are
good in the market, how bad they are o they are going to be.
We know this company is one of the most known in all world, so it has its
competition, but as you know, people still prefer coca cola because of how they
create its products, you can compare it with other one, and maybe you can see
that other one can have more revenues, but because it is in other industry too, but
if you compare both companies, but just in the same industry, youll see coca cola
has more revenues, but thats not all about this project.
As you see this project, you can realize and you can see how well this company is,
the way they manage their debt, how they manage their expenses and the
revenues, because they re-watch the last year and so on, to see how theyre going
in the present day, so thats why they do all the financial statements you could
see here, the point of this project is to relate the subject with real-life cases, but
also to know in future how to manage a process as well.
This project was done with the knowledge we got and with the support of pages
where we saw the numbers or information needed and we transformed it into the
development of this work, which was good because we could relate the way or the
numbers they gave you and convert them in what you need, interpret it.
82
Edwin Cid Vergara. 1648752

In this Project, we can saw lot of points referring to Coca-Colacompany, viewing
where they are, where they are good in the market, how bad they are o they are
going to be, if they are good enough to make to people keep drink their products,
and keep having recognition around the world.
We know this company is one of the most known in all world, so it has its
competition, but as you know, people still prefer coca cola because of how they
create its products, you can compare it with other one, and maybe you can see
that other one can have more revenues, but because it is in other industry too, but
if you compare both companies, but just in the same industry, youll see coca cola
has more revenues, but thats not all about this project.
We have audited The Coca-Cola Companys internal control over financial
reporting as of December 31, 2012 and 2013. The Coca-Cola Companys
management is responsible for maintaining effective internal control over financial
reporting.
Coca-Cola is always looking at ways to reduce the resources we use in the method
of packaging. At the moment, the raw materials needed to make most plastics
come from petroleum and other fossil fuels, and regular plastic bottles are
currently made from petroleum. The new Plant Bottle packagingwill move us one
step closer to our long-term goal of creating plastic bottles that are truly petroleumfree.
So we can star to Learn about coca-cola financial, environmental, and social Ideals
in to take care of the world.
83
Grecia Gisela Fidalgo Ponce, 1552214.
I would invest in a company like Coke, recently I went to some seminars of

Oswaldo Pecina, and I learned new strategies and business moves, he said that
"People do not purchase for quality, buy for a necessity" and "People moves (buys)
based on emotions, not logic."
So we know that sodas are products that make us wrong in our body, and our brain
tells us "do not do not do not drink", but in reality we are not interested, we know
that something is bad for our body but we still keeping buying.
And then there's something that I've always said.... well my parents have a small
seafood restaurant then there are lots of cokes and I used to drink at least 3 per
day, habit that I left after a few years, now I have not that feeling to drink it, but I
still love her because I have a feeling for coke. Why? Pecina says so in his
seminars "People move based on emotions, not logic" So, what makes to us the
Coke? Coke makes its photos and advertising based on emotions, touches our
heart, since coke started its advertisements are about emotions and make us
believe that coca cola is part of the family, that has been always there, or like
commercials about Christmas, they touch us. And based on these commercials ,
our minds changed, and changing , we believe that is a necessity in the time you
are going to buy a soda, you do not look at others, because you see the coke as
part of " your family "and thus created a new need .
And if we stop to think a little, that's how businesses do, like Facebook, that meets
our basic needs: security, recognition, connection. With recognition means that
when we got a picture and people give us "like" we get excited, and we felt full, and
with this I just want to say that everything moves based emotions.
And why I said this? Because when that coke gets to the heart of our customers,
has the power, and will have the power, because coke knows how to lead their
customers, which is why its success, so I would invest in this company because it
is a great leader, who knows how, and knowledge is power.
This project lets me how l this type of worldwide companies moves, and how its
competitors are, and annual sales they make, and its liquidity
Because we investigate all matters relating to the finances of coke, and everything
is awesome now, all that occurs, and how dominates the market, and as their
numbers make clear who is the leader.
84
Sonia Giselle Medrano Ortiz, 1649032

This is a very productive project. This Financial project talking about Coca-Cola
lets us know the financial position of the company and the evolution of the same
during the pass of the years.
Elaborating the project was a really good challenge, because it puts in prove our
skills obtained during the semester. We had to give an analysis about the data
researched, to convince the investors to invest in the company.
We could observe that Coca-Cola is a leading company known worldwide and that
is a company profitable, which has been established many years ago. This makes
Coca-Cola a good company to invest, because it stays steady in the market, and
the benefits obtained could be excellent.
We can see by giving a clear look to the project, how the company manage their
debts, their assets etc. It is crucial to compare Coke with other companies to
convince the investor that Coca-Cola is the best company to make is money
turnover. The industry of Coke is the beverage industry in this project we compared
it with a big competitor Pepsi. And we realize that Coke is a better company to
invest than coke.
So if I was an investor after analyzing the project I would definitely invest in Coke.
Making this project was a really good and interesting experience; it thought me a
lot about the world of finance.
85
BIBLIOGRAPHY
http://finance.yahoo.com/q/bs?s=ko+balance+sheet&annual
http://www.istockanalyst.com/article/viewarticle/articleid/3831488
http://www.stock-analysis-on.net/NYSE/Company/Coca-Cola-Co/FinancialStatement/Income-Statement
http://financials.morningstar.com/incomestatement/is.html?t=KO&region=usa&culture=en-US&ownerCountry=USA
http://finance.yahoo.com/q/co?s=ko+competitors
http://www.coca-colacompany.com/investors/investors-info-stock-information
http://ir.cokecce.com/phoenix.zhtml?c=117435&p=irol-fundincomea
http://www.coca-colacompany.com/investors/quarterly-earnings-releases
86

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UNIVERSIDAD AUTNOMA DE NUEVO LEN

FACULTAD DE CONTADURA PBLICA Y ADMINISTRACIN

Teacher: Alberto Nava

Monterrey, N. L. February 142014

AnnualSummary Data (Millions)

Coca-Cola Board of Directors.

Policy since May 2011. He is also a Director of Diamond Resorts International,

senior management positions at American International Group, Inc., most recently

Maria Elena Lagomasino

James D. Robinson III

Coca-Cola Majority-owned Subsidiaries

Berkshire Hathaway Inc

Vanguard Group Inc.

State Street Corporation

BlackRock Institutional Trust

Bank of New York Mellon

Grantham Mayo Van

OVERVIEW OF THE ANNUAL REPORT

Company and products

Management Discussion and Analysis:

Coca-Cola Co., Consolidated Income Statement

Coca-Cola Co.'s net income attributable to shareowners of The Coca-Cola

Coca-Cola Co., Consolidated Statement of Cash Flows

Other operating charges

Consumer demand determines the optimal menu of Company product offerings.

Dec 31, 2013

Dec 31, 2012

Equity income, net

Othe rincome (loss), net

Income before income taxes

Consolidated net income

Coca Colas BALANCE SHEET.

Dec 31, 2012

Trade accounts receivable, less allowances

Prepaid expenses and other assets

Equity method investments

Other investments, principally bottling companies

Trademarks with indefinite lives

Bottlers' franchise rights with indefinite lives

Other accrued expenses

Trade accounts payable

Sales, payroll and other taxes

Assets held for sale

Property, plant and equipment, net

Accrued income taxes

Liabilities held for sale

Long-term debt, excluding current maturities

Deferred income taxes

Accumulated other comprehensive loss

Total liabilities and equity

Accounts payable and accrued expenses

Common stock, $0.25 par value

Treasury stock, at cost

Coca Colas Cash Flow.

Dec 31, 2013

Dec 31, 2012

Consolidated net income

Depreciation and amortization

Stock-based compensation expense

Deferred income taxes

Other operating charges

(Increase) decrease in inventories