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%) |
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:
- Will You Take Your Coke Blak?
- Coke's a Bit Flat
- Why This Stock Is a Winner
- Monster Year Unleashed at Hansen
Coke and Anheuser-Busch are Motley Fool Inside Value recommendations. You can have access to lead analyst Philip Durell's best value ideas by taking a30-day free trial.
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.
