Coca-Cola Co.

(KO) Short-term (Operating) Activity Analysis Activity ratios measure how efficiently a company performs day-to-day tasks, suc h us the collection of receivables and management of inventory. * * * * * * * * * * Ratios (Summary) Inventory Turnover Receivables Turnover Payables Turnover Working Capital Turnover Average Inventory Processing Period Average Receivable Collection Period Operating Cycle Average Payables Payment Period Cash Conversion Cycle

Ratios (Summary)

Coca-Cola Co., short-term (operating) activity ratios Source: 50 53 45 55 54 Cash -14 -16 -17 -20 Less: 64 70 60 72 74 Operating cycle 39 42 35 44 46 Add: 25 28 Average turnover 7.30 6.94 8.18 6.59 6.76 Working turnover 25.93 20.91 23.32 Based 21.98 inventory processing period 18.61 No. Payablescapital data 9.31 8.70 10.34 2006 8.25 7.93 Receivables 14.68 2007 13.00 2008 14.61 2009 oncycle 13.16 Averagereceivable 13.25conversion turnovercollection period InventoryRatiosDays Dec Averageofpayables payment period ec 31, 2010turnover from Coca-Cola Co. Annual Reports A Tverage Durnover

Coca-Cola Co.'s inventory turnover deteriorated from 2008 to An company Inventory turnover Theactivity ratio calculated as revenue divided by inventory.2009 but then sligh Ratio Description Coca-Cola Co.'s receivables turnover deteriorated from 2008 An improved from equal Receivables ratio 2009 to revenue divided by receivables. to 2009 and from 200 tlyactivity turnover to 2010. Coca-Cola An activity ratio Payables turnover calculated as revenue divided 2008 to 2009 9 to 2010.Co.'s payables turnover declined from by payables. and from 2009 to 20 Coca-Cola Co.'s working An Working capital turnovercapital turnover deteriorated from 2008 to 10.activity ratio calculated as revenue divided by working capital.2009 but then An activity ratio equal 2009 period Average inventory processing tonumber of days in the period divided by inventory slightly improved from to the 2010. Coca-Cola over the period. turnover Co.'s average inventory processing period deteriorated from 2008 to 20 An activity ratio collection number Average receivableequal to theperiod of days in 09 but then slightly improved from 2009 to 2010. the period divided by receivabl Coca-Cola Co.'s average receivable collection period deteriorated from 2008 to 2 es turnover. Equal to cycle Operatingaverage to 2010. 009 and from 2009inventory processing period plus average receivables collection Coca-Cola Co.'s operating cycle deteriorated from 2008 to 2009 and from 2009 to period.

An estimate of the average number Average 2010. payables payment period of days it takes a company to pay its supplier s; equal to the number of days in the period divided by payables turnover ratio Coca-Cola Co.'s for the period. average payables payment period increased from 2008 to 2009 and A financial 2010. Cash conversion cycle from 2009 tometric that measures the length of time required for a company to co nvert cash invested in its operations to cash received as a result of its operat ions; equal to average inventory processing period plus average receivables coll Coca-Cola Co.'s cash conversion cycle deteriorated from 2008 to 2009 but then sl ection period minus average payables payment period. Inventory Turnover ightly improved from 2009 to 2010. Source: Co.1 9.75 9.48 10.50 10.06 10.28 14.68 13.00 14.61 13.16 13.25 Coca-Cola Turnover,Goods 1,641 2,220 2,187 2,354 2,650 Financial Data Inventories 24,088 Based 28,857 2006 31,944 2007 30,990 2008 35,119 2009 Net Dec operating on data (USD$inmillions) ec 31, 2010 revenuesfrom Coca-Cola Co. Annual Reports Industry, Snventory Delected Consumer Comparison to Industry 2010 Calculations 1Inventory turnover = Net operating revenues Inventories = 35,119 2,650 = 13.25

Coca-Cola Co.'s inventory turnover deteriorated from 2008 to An company Inventory turnover Theactivity Description ratio calculated as revenue divided by inventory.2009 but then sligh Ratio Payables Turnover tly improved from 2009 to 2010. Source: Consumer Goods 12.29 11.96 12.38 14.80 10.55 25.93 20.91 23.32 21.98 18.61 Coca-Cola Co.1 929 1,380 1,370 1,410 Turnover, Comparison to Industry 1,887 Financial Data Trade 24,088 Based 28,857 2006 31,944 2007 30,990 2008 35,119 2009 Net accounts payable Dec operating on data (USD$inmillions) ec 31, 2010 revenuesfrom Coca-Cola Co. Annual Reports I Pndustry, Sayables Delected 2010 Calculations 1Payables turnover = Net operating revenues Trade accounts payable = 35,119 1,887 = 18.61

Coca-Cola Co.'s payables turnover declined from 2008 to 2009 An company Payables turnover Theactivity Description ratio calculated as revenue divided by payables. and from 2009 to 20 Ratio Working Capital Turnover 10. Source: Consumer Goods 8.53 8.30 9.58 8.63 9.68 7.30 6.94 8.18 6.59 6.76 Coca-Cola Co.1 3,299 4,157 3,907 4,702 Financial Data 5,193 Based Working Capital 24,088 capital data (USD$inmillions) 28,857 2006 31,944 2007 30,990 2008 35,119 2009 Net Dec operating onTurnover, Coca-Cola Co. Annual ec 31, 2010 revenuesfromComparison to IndustryReports I Wndustry, Sorking Delected 2010 Calculations 1Working capital turnover = Net operating revenues Working capital = 35,119 5,193 = 6.76 Coca-Cola An company Working Co.'s working Theactivity Description ratio calculated as turnover deteriorated from 2008 to Ratio capital turnovercapital revenue divided by working capital.2009 but then Average Inventory Processing to 2010. slightly improved from 2009 Period Source: Based 37 39 35 36 25 28 Coca-Cola turnover Goods 14.68 Inventory Data 13.00 2006 14.61 2007 13.16 2008 13.25 2009 InventoryFinancialProcessing Period Co. Annual Reports Dec ec 31, 2010 on data from Coca-Cola(no. of days), Comparison to Industry I Andustry, Sverage Consumer Delected Co.1 2010 Calculations 1Average inventory processing period = 365 Inventory turnover = 365 13.25 = 28 An company Average Theactivity Description ratio equal to the number Ratio inventory processing period of days in the period divided by inventory Coca-Cola over the period. turnover Co.'s average inventory processing period deteriorated from 2008 to 20 Average Receivable Collection Period 09 but then slightly improved from 2009 to 2010. Source: 2008 36 33 31 37 39 42 35 44 46 Coca-ColaFinancial Data 9.31 8.70 10.34 2009 8.25 7.93 Receivables on data Dec ec 31, 2010turnover from Coca-Cola (no.Annual Reports I Andustry, Co.1 Sverage 2006 Delected2007 Based Receivable Collection Period Co. of days), Comparison to Industry Consumer Goods 2010 Calculations 1Average receivable collection period = 365 Receivables turnover = 365 7.93 = 46 An company Average Theactivity Description ratio collection number Ratio receivableequal to theperiod of days in the period divided by receivabl Coca-Cola Co.'s es turnoverd. average receivable collection period deteriorated from 2008 to 2 009 and from 2009 to 2010. Operating Cycle Source: 2008 73 68 67 64 70 60 72 74 Coca-ColaFinancialprocessing period Co. to Industry 39 42 35 44 46 25 28 Average 2009 Dec ec 31, 2010 on(no. of (no. ofComparisonAnnual Reports I Ondustry, Co.1 Sperating Cycle data from Coca-Cola Delected2007 Based receivable collection days) inventory Data days),period 2006 Consumer Goods

2010 Calculations 1Operating cycle = Average inventory processing period + Average receivable colle ction period = 28 + 46 = 74 Equal Operating cycle The company Description Ratio to average inventory processing period plus average receivables collection Coca-Cola Co.'s operating cycle deteriorated from 2008 to 2009 and from 2009 to period. Average 2010. Payables Payment Period Source: turnover Goods 30 31 29 25 35 14 16 17 20 Coca-ColaFinancial Data 25.93 Based 20.91 Payables data from Coca-Cola Co. Annual Reports 23.32 2006 21.98 2007 18.61 2008 Payables2009 Dec ec 31, 2010 on Payment Period (no. of days), Comparison to Industry I Andustry, Sverage Consumer Delected Co.1 2010 Calculations 1Average payables payment period = 365 Payables turnover = 365 18.61 = 20

An company Average Theestimate Description of the average number Ratio payables payment period of days it takes a company to pay its supplier s; equal to the number of days in the period divided by payables turnover ratio Coca-Cola Co.'s for the period. average payables payment period increased from 2008 to 2009 and Cash Conversion Cycle from 2009 to 2010. Source: 2008 43 38 50 53 45 55 54 Coca-ColaFinancialprocessing period 14 16 17 20 39 42 35 44 46 25 28 Average 2009 Dec Conversion payment(no. period Co. Annual Reports ec 31, 2010 onCycle (no. ofof days)Comparison to Industry I Cndustry, Co.1 data from Coca-Cola Sash Delected2007 Based payables Goods receivable collection days), inventory Data period 2006 Consumer 2010 Calculations 1Cash conversion cycle = Average inventory processing period + Average receivable collection period Average payables payment period = 28 + 46 20 = 54

A financial Cash The company Description metric that Ratioconversion cycle measures the length of time required for a company to co nvert cash invested in its operations to cash received as a result of its operat ions; equal to average inventory processing period plus average receivables coll Coca-Cola Co.'s cash conversion cycle deteriorated from 2008 to 2009 but then sl ection period minus average payables payment period. ightly improved from 2009 to 2010.

2 Coca Cola

working capital management