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I'm trying to setup a spreadsheet to do the rulemaker screens as explained in the book. In the process of doing so, I came across something that is puzzling. I've downloaded KO's financials from goinvest.com and couldn't get them to match up with the numbers in the book.

On page 246 of "Rule Breakers/Rule Makers", values are given for Coke (KO). The heading is "Fiscal 1998
(Through Second Quarter)". I found that these numbers are actually totals of four quarters ended 6/30/98. KO's fiscal year ends in December, according to goinvest. So instead of two quarters of data, there are four.

At this point, my original question was going to be should we use annual or quarterly data for the screens? But on page 248, under the same heading, "Fiscal 1998..." I have found that the data presented here is for one quarter, the second, ending 6/30/98.

Can someone explain this, please? And, what data should one use when screening companies, quarterly or annual?

Thanks, Don
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I've wondered the same thing about the data in the Rule Book. Let me expand slightly on the previous question: Should we use Year-to-Date, Trailing 12 Months, or Quarterly data? Or, maybe it doesn't matter so long as we're consistent in comparing the same periods from year-to-year or quarter-to-quarter?

Also, on page 246 the figure for KO's Net Income is $4.4 billion; however, when I add up the numbers for the trailing 4 quarters I get $3.9 billion. All the other numbers for KO match the numbers I've found except this one. I've used data from about 5 different sources, including the 10-Q's and 10-K's, and they all give me the same numbers. Any ideas? Maybe I'm using the wrong line from the Income Statement?
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>>Any ideas? Maybe I'm using the wrong line from the Income Statement?
Thanks for your reply. I think that quarterly data is best.
I'm disappointed that some of the TMF higher-ups haven't joined in. This kind of dialog is what it's supposed to be all about. Maybe I should rename the thread.
Don
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One very good web site is Zacks for financial data. Also Free Edgar. Joe
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I've downloaded KO's financials from goinvest.com and couldn't get them to match up with the numbers in the book.

Hi Don,

Although I didn't write the book, I'll take a guess at why I think there may be an inconsistancy. In the book (page 225), Tom says investors should check the year to year sales to examine the company's sales growth. Although not specifically notated in the book on page 246, I would assume that we were looking at one year's sales. Since he used Second Q fiscal 1998, he would have had to have used Q 2 1997 through Q 2 1998.

On page 248 Tom is illustrating the calculation of the Cash to Debt ratio. I'm not 100% certain, but it's possible that this calculation could/should be done quarter to quarter or year to year. What I mean is, you can use either the quarterly or yearly balance sheet to figure out this ratio, and then run it again for a subsequent quarter to see if there is a change.

Hopefully Tom will soon respond to this question so we can know the answer once and for all. It's entirely possible that you stumbled on an error.

Fool on and prosper!

Karen

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