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Coca-Cola Enterprises Inc. Long-Term Financing Policy

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Coca-Cola Enterprises Inc. Long-Term Financing Policy


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

Beta 0.03

Share Related Items

Mkt. Cap. (Mil) $ 9,741.136

Shares Out (Mil) 469.226

Float (Mil) 239.400

Dividend Information

Yield % .77

Annual Dividend .16

Payout Ratio (TTM) % 11.53

Financial Strength

Quick Ratio (MRQ) .58

Current Ratio (MRQ) .99

LT Debt/Equity (MRQ) 2.07

Total Debt/Equity (MRQ) 2.19

Valuation Ratios

Price/Earnings (TTM) 15.20

Price/Sales (TTM) .54

Price/Book (MRQ) 1.92

Price/Cash Flow (TTM) N/A

Per Share Data

Earnings (TTM) $ 1.37

Sales (TTM) $ 38.44

Book Value (MRQ) $ 10.82

Cash Flow (TTM) $ 3.76

Cash (MRQ) $ .28

Mgmt Effectiveness

Return on Equity (TTM) 2.93

Return on Assets (TTM) 2.51

Return on Investment (TTM) 2.93


Gross Margin (TTM) % 41.03

Operating Margin (TTM) % 8.59

Profit Margin (TTM) % 3.56

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

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