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, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Consolidated net income	13,137)	10,649)	10,703)	9,571)	9,804)
Depreciation and amortization	1,050)	1,075)	1,128)	1,260)	1,452)
Stock-based compensation expense	279)	286)	254)	356)	337)
Deferred income taxes	517)	(11)	(2)	(122)	894)
Equity income, net of dividends	(1,038)	(802)	(1,019)	(838)	(615)
Foreign currency adjustments	191)	(110)	175)	203)	86)
Significant gains, net	(713)	(1,737)	(492)	(129)	(1,365)
Other operating charges	1,052)	4,000)	1,741)	1,086)	506)
Other items	141)	(311)	(43)	236)	201)
(Increase) decrease in trade accounts receivable	334)	(295)	(2)	(69)	(225)
(Increase) decrease in inventories	(154)	(520)	(597)	(960)	(135)
in prepaid expenses and other current assets and other noncurrent assets	(388)	(5,667)	(323)	225)	(241)
Increase (decrease) in accounts payable and accrued expenses	(6,612)	1,134)	841)	759)	2,843)
Increase (decrease) in accrued income taxes	(558)	(823)	(578)	(360)	(566)
Increase (decrease) in other noncurrent liabilities	170)	(63)	(187)	(200)	(351)
Net change in operating assets and liabilities	(7,208)	(6,234)	(846)	(605)	1,325)
Adjustments to reconcile consolidated net income to net cash provided by operating activities	(5,729)	(3,844)	896)	1,447)	2,821)
Net cash provided by operating activities	7,408)	6,805)	11,599)	11,018)	12,625)
Purchases of investments	(6,160)	(5,640)	(6,698)	(3,751)	(6,030)
Proceeds from disposals of investments	4,665)	6,589)	4,354)	4,771)	7,059)
Acquisitions of businesses, equity method investments and nonmarketable securities	(461)	(315)	(62)	(73)	(4,766)
Proceeds from disposals of businesses, equity method investments and nonmarketable securities	3,567)	3,485)	430)	458)	2,180)
Purchases of property, plant and equipment	(2,112)	(2,064)	(1,852)	(1,484)	(1,367)
Proceeds from disposals of property, plant and equipment	13)	40)	74)	75)	108)
Collateral (paid) received associated with hedging activities, net	330)	235)	366)	(1,465)	—)
Other investing activities	91)	194)	39)	706)	51)
Net cash (used in) provided by investing activities	(67)	2,524)	(3,349)	(763)	(2,765)
Issuances of loans, notes payable and long-term debt	4,980)	12,061)	6,891)	3,972)	13,094)
Payments of loans, notes payable and long-term debt	(4,967)	(9,533)	(5,034)	(4,930)	(12,866)
Issuances of stock	313)	747)	539)	837)	702)
Purchases of stock for treasury	(746)	(1,795)	(2,289)	(1,418)	(111)
Dividends	(8,779)	(8,359)	(7,952)	(7,616)	(7,252)
Proceeds from sale of a noncontrolling interest	1,338)	—)	—)	—)	—)
Other financing activities	(279)	(31)	(465)	(1,095)	(353)
Net cash used in financing activities	(8,140)	(6,910)	(8,310)	(10,250)	(6,786)
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents	321)	(623)	(73)	(205)	(159)
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the year	(478)	1,796)	(133)	(200)	2,915)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	11,488)	9,692)	9,825)	10,025)	7,110)
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year	11,010)	11,488)	9,692)	9,825)	10,025)

Based on: 10-K (reporting date: 2025-12-31), 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).

The company demonstrates generally positive net income over the analyzed period, increasing from US$9.804 billion in 2021 to US$13.137 billion in 2025. However, cash flow from operating activities exhibits more volatility. While initially strong, it declines significantly in 2024 and 2025. Investing activities fluctuate considerably, and financing activities consistently represent a net cash outflow. Overall, the net change in cash shows a mixed pattern, with increases in 2021 and 2024, but decreases in 2022, 2023, and 2025.

Operating Activities: Net cash provided by operating activities begins at US$12.625 billion in 2021, remaining relatively stable at around US$11 billion through 2023. A substantial decrease is observed in 2024, falling to US$6.805 billion, and this trend continues into 2025 with US$7.408 billion. This decline is partially attributable to significant changes in operating assets and liabilities, particularly a large outflow in 2024 and 2025. Adjustments to reconcile net income to operating cash flow also contribute to the volatility, showing a large negative adjustment in 2024 and 2025.
Investing Activities: Investing activities show considerable fluctuation. Purchases of investments are consistently negative, ranging from approximately US$5.6 billion to US$6.7 billion annually. Proceeds from disposals of investments partially offset these purchases, but the net result is generally a cash outflow. A notable exception occurs in 2024, where net cash provided by investing activities reaches US$2.524 billion, driven by increased proceeds from disposals. Acquisitions of businesses also contribute to cash outflows, though these decrease over time.
Financing Activities: Financing activities consistently represent a net cash outflow throughout the period. This is primarily due to substantial payments of debt and consistent dividend payments, which remain relatively stable around US$8 billion annually. Issuances of debt and stock provide some offsetting inflows, but are insufficient to cover the outflows. A notable inflow from the sale of a noncontrolling interest occurs in 2025, but does not fully mitigate the overall outflow.
Key Adjustments to Net Income: Depreciation and amortization consistently contribute positive cash flow, though the amount decreases slightly over time, from US$1.452 billion in 2021 to US$1.050 billion in 2025. Stock-based compensation also adds to cash flow, remaining relatively stable. Deferred income taxes exhibit significant variability, with a negative impact in 2022 and 2023, followed by a positive impact in 2025. Significant gains consistently represent a cash outflow, though the magnitude varies. Other operating charges show a large increase in 2024, contributing to the overall negative adjustment to net income in that year.
Working Capital: Changes in working capital demonstrate significant fluctuations. Increases in accounts payable and accrued expenses generally provide a cash inflow, but this effect is dramatically reversed in 2025, resulting in a substantial cash outflow. Decreases in inventories generally provide a cash inflow, but the magnitude varies. The change in prepaid expenses and other assets shows considerable volatility, with a particularly large outflow in 2024. Changes in accrued income taxes consistently represent a cash outflow.

The company’s ability to generate cash from operations appears to be weakening in the later years of the period, despite increasing net income. This warrants further investigation into the drivers of the decline in operating cash flow, particularly the significant changes in operating assets and liabilities and the adjustments to net income. The consistent reliance on financing activities to cover cash outflows suggests a potential need to optimize capital structure and cash management strategies.

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Coca-Cola Co. (NYSE:KO)

Cash Flow Statement