Message Font: Serif | Sans-Serif
No. of Recommendations: 3

Okay, I've found the incriminating evidence. For those with the red glossy annual, it's in the right column of page 46. For those trying to find it online, it is (by incredible coincidence) also on page 46. Go to the following link, scroll to page 46, then go back to the top portion:

Albert, I'm with you on this issue. It's ludicrous the way Coke is exhibiting its KO side as very capital efficient, while the CCE side drowns in debt. The whole notion of CCE's "cash operating profit" is a joke. CCE includes the non-cash depreciation expenses as part of its cash operating profit, even though those depreciation expenses represent a true economic cost. For the past 3 years, CCE's annual capital outlays (CASH) have been HIGHER than the non-cash depreciation expenses. Here's a link to the cash flow statement from the '98 10-K:

Here's how CCE's free cash flow (operating cash flow less net cap ex) looks for the past 3 years:

1998 1997 1996
Operating Cash Flow 946 942 1006
- Investments in Capital Assets 1551 967 622
+ Fixed Asset Disposals 17 20 12
= Free Cash Flow -588 -5 396

Ain't that a thing of beauty?!

Albert, you've opened my eyes to what's really going on within Coca-Cola. And it's not a pretty sight. KO is propping up its suffering siamese brother with "marketing support" so that it won't become insolvent. All so that KO won't have to consolidate the capital intensive portion of its business.

Hmmm, I've really got to give this whole issue more thought. Thanks again, Albert.


Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.