On April 19, Coca-Cola (NYSE:KO) released fiscal first-quarter earnings for the period ended March 31, 2006.

  • Profit increased 10% on flat sales growth.
  • Gross and net margins increased almost two full percentage points.
  • Working capital increases hurt operating cash flow.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q1 2006

Q1 2005

Change

Sales

$5,300

$5,226

$5,206

0.4%

Net Profit

--

$1,106

$1,002

10.4%

EPS

$0.48

$0.47

$0.42

11.9%



Get back to basics with a look at the income statement.

Margin Checkup

Q1 2006

Q1 2005

Change

Gross Margin

66.97%

65.08%

1.89%

Op. Margin

26.69%

26.10%

0.59%

Net Margin

21.16%

19.25%

1.92%



Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q1 2006

Q4 2005

Change

Cash+ ST Invest.

$4,492

$4,767

(5.8%)

Inventory

$1,549

$1,379

12.3%

Accounts Rec.

$2,237

$2,281

(1.9%)



Liabilities

Q1 2006

Q4 2005

Change

Long-Term Debt

$1,152

$1,154

(0.2%)

Accounts Pay.

$4,954

$4,493

(10.3%)



Inventories at work.

Cash Flow Highlights

Q1 2006

Q1 2005

Change

Cash From Ops

$707

$1,372

(48.5%)

Capital Expend.*

$499

$172

190.1%

Free Cash Flow

$208

$1,200

(82.7%)

*Includes acquisitions, principally trademarks, and bottlers.

Related retail companies:

  • Anheuser-Busch (NYSE:BUD)
  • Cadbury Schweppes (NYSE:CSG)
  • Cott (NYSE:COT)
  • Hansen Natural (NASDAQ:HANS)
  • Jones Soda (NASDAQ:JSDA)
  • Pepsi (NYSE:PEP)

Related Foolishness:

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Fool analyst Andy Cross owned shares of Pepsi. Fool rules are here.