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Coca-Cola Enterprises Inc. Long-Term Financing Policy

Submitted by moeycp on January 24, 2006

Category: Business
Words: 1115 | Pages: 5
Views: 288
Popularity Rank: 33,430
Average Member Grade: N/A (Add a Comment / Grade this Paper)

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
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...

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