On Oct. 19, Coca-Cola (NYSE:KO) released earnings for the third quarter ended Sept. 29.

  • Coca-Cola came in well above revenue and earnings-per-share estimates, though through the first nine months of the year, free cash flow is down compared with last year.
  • Margins improved across the board.
  • Sales of carbonated beverages were unexpectedly strong, matching non-carbonated beverages with a 5% increase in volume.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$6,210

$6,454

$6,037

6.9%

Net Profit

--

$1,460

$1,283

13.8%

EPS

$0.59

$0.62

$0.54

14.8%

Diluted Shares

2,343

2,385

(1.8%)



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

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

64.91%

62.98%

1.93

Operating Margin

25.75%

24.71%

1.04

Net Margin

22.62%

21.25%

1.37

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$3,523

$5,062

(30.4%)

Accounts Rec.

$2,489

$2,217

12.3%

Inventory

$1,592

$1,431

11.3%



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$5,620

$5,194

8.2%

Long-Term Debt

$1,242

$1,121

10.8%



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$4,634

$5,280

(12.2%)

Capital Expenditures

$960

$633

51.7%

Free Cash Flow

$3,674

$4,647

(20.9%)



Find out why Fools always follow the money.

Related companies:

  • PepsiCo (NYSE:PEP)
  • Coca-Cola Enterprises (NYSE:CCE)
  • Coca-Cola FEMSA (NYSE:KOF)
  • Hansen Natural (NASDAQ:HANS)
  • Jones Soda (NASDAQ:JSDA)

For another cup of Foolish reading:

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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 checkFool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication,Nathan Parmelee had no positions in any of the companies mentioned. Fool rules are here.