Finance Blog Essay

2729 Words Aug 7th, 2011 11 Pages
Figures in million dollars except percentage change. Major components | 2010 | 2009 | 2008 | Percentage change | | | | | 2010vs2009 | 2010vs2008 | Revenue | 35,119 | 30,990 | 31,944 | 13% | 10% | Cost of goods sold | 12,693 | 11,088 | 11,374 | 14% | 11.5% | Operating income | 8,449 | 8,231 | 8,446 | 3% | 0.03% | Interest expenses | 733 | 355 | 438 | 106% | 67% |
Source: coca cola annual report 2010, 2009 and 2008 * As we can see from the above table that the net revenues (sales) shows an increased in 2010 as compared to 2009 and 2008 with 13% and 10% respectively. The sales were high in 2008 but deteriorate in 2009. The percentage change in net operating revenue due to increase or decrease in
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Reflects the impact in debt assumed from CCE. However while comparing the 2010 with 2008 the percentage increase was 67% or $295 million.

* As we can see from the above table that the operating income inclined by 3% in 2010 with increased of $231 million from 2009, which occurs due to currency fluctuation and geographic mix i.e. emergence into developing market. In 2010 according to the company’s annual report, operating income has an great impact by deconsolidation of certain entities as a result of company’s adoption of new accounting guidance issued by the FASB. They are accounted under equity method of accounting since Jan 2010. The comparison doesn’t shows the big difference between 2010 and 2008, so profit margin slightly drops in 2009 but again increased in 2010.

Cash flow statement:
Figure in millions. Major section | 2010 | 2009 | 2008 | Difference | | | | | 2010 vs 2009 | 2010 vs 2008 | operating activities | $ 9,532 | 8,186 | 7,571 | 1,346 | 1,961 | investing activities | 4,405 | 4,149 | 2,363 | 256 | 2042 | Financing activities | 3,465 | 2,293 | 3,985 | 1,172 | (520) |
Source: coca cola annual report 2010, 2009 and 2008. * According to annual report of the company, the net cash from operating activities for 2010, 2009 & 2008 was $9,532 million, $8,186 million and $7,571 million respectively. Cash flow increased by $1,346 mil in 2010 compared to 2009, increased was due to increased cash receipts

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