Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Coca-Cola Co., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Consolidated net income	10,649)	10,703)	9,571)	9,804)	7,768)
Depreciation and amortization	1,075)	1,128)	1,260)	1,452)	1,536)
Stock-based compensation expense	286)	254)	356)	337)	126)
Deferred income taxes	(11)	(2)	(122)	894)	(18)
Equity income, net of dividends	(802)	(1,019)	(838)	(615)	(511)
Foreign currency adjustments	(110)	175)	203)	86)	(88)
Significant (gains) losses, net	(1,737)	(492)	(129)	(1,365)	(914)
Other operating charges	4,000)	1,741)	1,086)	506)	556)
Other items	(311)	(43)	236)	201)	699)
(Increase) decrease in trade accounts receivable	(295)	(2)	(69)	(225)	882)
(Increase) decrease in inventories	(520)	(597)	(960)	(135)	99)
in prepaid expenses and other current assets and other noncurrent assets	(5,667)	(323)	225)	(241)	78)
Increase (decrease) in accounts payable and accrued expenses	1,134)	841)	759)	2,843)	(860)
Increase (decrease) in accrued income taxes	(823)	(578)	(360)	(566)	(16)
Increase (decrease) in other noncurrent liabilities	(63)	(187)	(200)	(351)	507)
Net change in operating assets and liabilities	(6,234)	(846)	(605)	1,325)	690)
Adjustments to reconcile consolidated net income to net cash provided by operating activities	(3,844)	896)	1,447)	2,821)	2,076)
Net cash provided by operating activities	6,805)	11,599)	11,018)	12,625)	9,844)
Purchases of investments	(5,640)	(6,698)	(3,751)	(6,030)	(13,583)
Proceeds from disposals of investments	6,589)	4,354)	4,771)	7,059)	13,835)
Acquisitions of businesses, equity method investments and nonmarketable securities	(315)	(62)	(73)	(4,766)	(1,052)
Proceeds from disposals of businesses, equity method investments and nonmarketable securities	3,485)	430)	458)	2,180)	189)
Purchases of property, plant and equipment	(2,064)	(1,852)	(1,484)	(1,367)	(1,177)
Proceeds from disposals of property, plant and equipment	40)	74)	75)	108)	189)
Collateral (paid) received associated with hedging activities, net	235)	366)	(1,465)	—)	—)
Other investing activities	194)	39)	706)	51)	122)
Net cash (used in) provided by investing activities	2,524)	(3,349)	(763)	(2,765)	(1,477)
Issuances of loans, notes payable and long-term debt	12,061)	6,891)	3,972)	13,094)	26,934)
Payments of loans, notes payable and long-term debt	(9,533)	(5,034)	(4,930)	(12,866)	(28,796)
Issuances of stock	747)	539)	837)	702)	647)
Purchases of stock for treasury	(1,795)	(2,289)	(1,418)	(111)	(118)
Dividends	(8,359)	(7,952)	(7,616)	(7,252)	(7,047)
Other financing activities	(31)	(465)	(1,095)	(353)	310)
Net cash used in financing activities	(6,910)	(8,310)	(10,250)	(6,786)	(8,070)
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents	(623)	(73)	(205)	(159)	76)
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the year	1,796)	(133)	(200)	2,915)	373)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	9,692)	9,825)	10,025)	7,110)	6,737)
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year	11,488)	9,692)	9,825)	10,025)	7,110)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

The consolidated net income exhibits an overall upward trend from 2020 through 2024, increasing from $7,768 million to a peak of $10,703 million in 2023 before slightly declining to $10,649 million in 2024. Depreciation and amortization expenses consistently decreased each year, falling from $1,536 million in 2020 to $1,075 million in 2024, which may reflect changes in asset base or amortization policies.

Stock-based compensation expenses increased significantly from 2020, peaking in 2022 at $356 million, followed by a moderate decline in subsequent years. Deferred income taxes show fluctuation with a large positive spike in 2021 ($894 million) but generally remain near zero or negative values. Equity income, net of dividends, has been persistently negative, deepening from -$511 million in 2020 to -$1,019 million in 2023, before recovering slightly to -$802 million in 2024, indicating ongoing losses or costs from equity investments.

Foreign currency adjustments display mixed results, starting at -$88 million in 2020, turning positive in 2021 and 2022, then reversing to -$110 million in 2024, which suggests exposure to currency volatility. Significant gains and losses have been volatile, with substantial negative impacts particularly in 2020 (-$914 million), 2021 (-$1,365 million), and 2024 (-$1,737 million), indicating episodic unusual gains or losses affecting earnings.

There is a notable rise in other operating charges, escalating sharply from $556 million in 2020 to $4,000 million in 2024, signaling increased operational costs or exceptional charges. Other items vary considerably, moving from $699 million in 2020 to negative figures in the most recent years, implying inconsistent miscellaneous influences on operations.

Working capital components reveal variable movements: trade receivables changes fluctuate from positive to negative, but generally show a moderate decline by 2024. Inventory reductions become more pronounced year over year, indicating potential inventory management efficiency or declining stock levels. Prepaid expenses and other assets present more volatility, with a significant decrease recorded in 2024 (-$5,667 million), which could point to asset write-downs or changes in prepayments.

Accounts payable and accrued expenses consistently increase, rising substantially from -$860 million in 2020 to $1,134 million in 2024, reflecting greater liabilities or deferral of payments. Accrued income taxes display a growing negative trend, suggesting increased tax outflows or adjustments. Other noncurrent liabilities decline slowly, indicating gradual liability reduction.

The net change in operating assets and liabilities peaks positively in 2021 but turns considerably negative from 2022 onward, culminating in -$6,234 million in 2024. This shift suggests decreasing cash inflow from working capital movements. Adjustments reconciling net income to operating cash flows also fluctuate and turn negative in 2024 (-$3,844 million), contributing to a reduced net cash provided by operating activities that dropped from $12,625 million in 2021 to $6,805 million in 2024.

Investment activities show variable cash flows with purchases and proceeds from investments decreasing over time. Purchases of property, plant, and equipment steadily increase, reaching $2,064 million in 2024, reflecting ongoing capital expenditures. Proceeds from disposals of such assets decrease annually. Collateral associated with hedging activities shows a significant negative impact in 2022 but positive contributions in subsequent years. Overall, net cash used in investing activities turned positive in 2024 ($2,524 million), shifting from negative outflows in prior years.

Financing activities are characterized by substantial debt issuances and repayments. Issuances of loans and long-term debt decline from $26,934 million in 2020 to $3,972 million in 2022, before increasing again to $12,061 million in 2024. Corresponding repayments exhibit a similar pattern but generally remain slightly lower than issuances in later years. Issuances of stock fluctuate modestly, while purchases of treasury stock increased sharply in 2022 and 2023, then decreased slightly in 2024. Dividends demonstrate a steady rise, indicating ongoing shareholder distributions. Other financing activities vary but tend to be negative in recent years. Overall, net cash used in financing activities decreases over the period but remains negative, indicating net cash outflows from financing.

Exchange rate effects on cash are inconsistent, ranging from positive to increasingly negative values, with a notable negative effect in 2024 (-$623 million). The net increase in cash and equivalents peaked in 2021 with a $2,915 million rise, then showed declines including slight decreases in 2022 and 2023, before recovering to $1,796 million in 2024. Ending cash and equivalents follow an upward trend overall, reaching $11,488 million in 2024 from $7,110 million in 2020, indicating strengthening liquidity despite cash flow volatility from other activities.

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Coca-Cola Co. (NYSE:KO)

Cash Flow Statement