Company DCF analysis file
Coca-Cola DCF Analysis
A Coca-Cola DCF should separate beverage operating economics from the fairlife payment and changes in the bottling perimeter. FY2025 operating profit improved much faster than sales, partly reflecting a different operating-charge base. An adjusted cash comparison does not reverse an actual acquisition-related payment.
Revenue, expenses and profit on one annual basis
Historical Coca-Cola consolidated comparison, $ millions: FY2024 ended 2024-12-31 and FY2025 ended 2025-12-31. These annual periods are separate from the later interim observation below.
| Measure | FY2024 | FY2025 |
|---|---|---|
| Net operating revenues | 47,061 | 47,941 |
| Cost of goods sold | 18,324 | 18,397 |
| Gross profit | 28,737 | 29,544 |
| Selling, general and administrative | 14,582 | 14,521 |
| Other operating charges | 4,163 | 1,261 |
| Operating income | 9,992 | 13,762 |
| Consolidated net income | 10,649 | 13,137 |
| Net income attributable to company shareowners | 10,631 | 13,107 |
Source: Annual financial statements. Annual values are reported unless a row is marked derived.
Other operating charges fell substantially, so operating-profit growth cannot be attributed to beverage volume alone. Consolidated net income and income attributable to company shareowners have different noncontrolling-interest boundaries. Price/mix, input cost, currency and ownership changes need distinct explanations before a recurring margin is assumed.
Keep operating performance and attribution distinct
| Reported annual profit context, $ millions | FY2024 | FY2025 |
|---|---|---|
| Gross profit | 28,737 | 29,544 |
| Other operating charges: expense | 4,163 | 1,261 |
| Equity income, net | 1,770 | 2,031 |
Source: Annual business disclosures and financial notes. Annual values are reported unless a row is marked derived.
Gross profit is before corporate selling and other operating charges. Equity-method income is a different ownership measure below operating income. None of these rows supplies brand-level profit or the cash needs of every bottler. Keep the operations actually consolidated inside the forecast perimeter.
Reconcile reported cash before forecasting investor cash
| Measure | FY2024 | FY2025 |
|---|---|---|
| 2025 operating cash | See period-specific comparison | 7,408 |
| 2025 property purchases | Positive deduction | 2,112 |
| 2025 cash after property purchases: derived | Not an adjusted measure | 5,296 |
| Cash after property purchases: derived | 4,741 | 5,296 |
Source: Annual cash-flow statement and related notes. Annual values are reported unless a row is marked derived.
The detailed 2025 subtraction is 7,408 minus 2,112 = $5,296 million. The issuer separately presents rounded $5.3 billion FCF, a $6.1 billion fairlife payment and $11.4 billion FCF excluding that payment. Keep rounded billions separate from exact millions. The adjusted comparison asks a different question and cannot fund the historical payment.
The later interim period stays separate
| Observation | Period-specific evidence |
|---|---|
| Reported period basis | Q2 2026 covers 2026-04-04 through 2026-07-03 and was released 2026-07-28. Revenue was $13,380 million in this quarter. |
| Interpretation boundary | The next Q3 release is after the cutoff. The actual second-quarter release is used here; fairlife cash payments remain distinct from an adjusted operating-cash comparison. |
Source: official reporting for the stated period. The dated quarter is not annualized here and is not added to either full-year column. Later reporting must be checked before refreshing the valuation date.
Turn the statements into a DCF operating case
Forecast volume and price/mix for the selected concentrate and finished-beverage perimeter, then input costs, selling expense and operating taxes. Reconcile noncash charges, operating balances and investment to that case. Acquisition-related cash needs an explicit treatment instead of an automatic add-back. Do not assume every bottler asset or cash flow is consolidated; classify equity affiliates and noncontrolling claims before moving from enterprise to shareowner value.
| Driver | Evidence to carry into the forecast | Downside condition to test |
|---|---|---|
| Consumer demand | Volume and realized price/mix separately | Price realization is assumed without a volume response |
| Input economics | Ingredients, packaging and distribution costs | Costs rise before prices or mix can compensate |
| Portfolio and transaction cash | Consolidated bottling scope and fairlife funding | An adjusted FCF figure is treated as cash actually retained |
Compare stable volume with a changed price/mix case, then vary input costs independently. Keep completed ownership changes distinct from future proposals. A terminal margin must fund the assets and commercial support used by that specific beverage case; a non-GAAP cash adjustment does not establish it.
Use the Coca-Cola financial analysis for the broader operating context, the company forecast to state the operating assumptions, and the DCF calculator only after defining the investor cash stream. Keep the statement definitions, reporting dates and your own assumptions visible when comparing valuation cases.
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