Coca-Cola Enterprises Inc. Long-Term Financing Policy
Coca-Cola Enterprises Inc. Long-Term Financing Policy
Introduction
In 2004, due to difficult market conditions in both North America and Europe, Coca-Cola Enterprises, Inc. was left with a full-years performance below their initial forecasts. Earning per common share on a similar basis reached $1.27, which was down 5 cents from the previous year, while comparable operating income was slightly down compared to the preceding year. However, they were able to achieve a free cash flow from operations less capital spending, of $669 million. These available funds were used primarily to reduce debt, thereby facilitating their goal of strengthening their balance sheet through continued debt reduction (Coca-Cola Enterprises Annual Report 2004, p. 2).
Coca-Cola Enterprises Inc, (CCE), markets, distributes and produces bottled and canned beverage products for The Coca-Cola Company. According to CCE annual report as of 2005 for the 9 months that ended on 10/1/04, “revenues increased 6% to $13.75B and net income to Common decreased 6% to $514M. Revenues reflect improved North American & European pricing growth, innovations in brand extensions and new packaging. Higher interest expenses offset increased earnings.”
Table A
Key Ratios & Statistics
Price & Volume
Recent Price $
20.76
52 Week High $
29.34
52 Week Low $
18.45
Avg Daily Vol (Mil)
24.931
Share Related Items
Mkt. Cap. (Mil) $
9,741.136
Shares Out (Mil)
469.226
Float (Mil)
239.400
Dividend Information
Yield %
Annual Dividend
Payout Ratio (TTM) %
11.53
Financial Strength
Quick Ratio (MRQ)
Current Ratio (MRQ)
LT Debt/Equity (MRQ)
Total Debt/Equity (MRQ)
Valuation Ratios
Price/Earnings (TTM)
15.20
Price/Sales (TTM)
Price/Book (MRQ)
Price/Cash Flow (TTM)
Per Share Data
Earnings (TTM) $
Sales (TTM) $
38.44
Book Value (MRQ) $
10.82
Cash Flow (TTM) $
Cash (MRQ) $
Mgmt Effectiveness
Return on Equity (TTM)
Return on Assets (TTM)
Return on Investment (TTM)
Profitability
Gross Margin (TTM) %
41.03
Operating Margin (TTM) %
Profit Margin (TTM) %
Mil = Millions MRQ = Most Recent Quarter
TTM = Trailing Twelve Months
Asterisk (*) indicates numbers are derived from Earnings Announcements
Pricing and volume data as of 01/20/2005
The following table provides a summary of Coca-Cola Enterprises, Inc. debt and credit facilities as of December 31, 2004 and 2003 (in millions):
At December 31,
Amounts available for borrowing:
Amounts available under committed domestic and international credit facilities
2,863
3,302
Amounts available under public debt facilities: (A)
Shelf registration statement with the U.S. Securities