 Welcome to the channel, this is Reliable Rooney, in this video we're going to fill a viewer request for Coca-Cola, ticker symbol K O. Now I've never really looked in the Coca-Cola that much, but I'm sure it's a pretty fundamentally sound business and I say that because they have a global presence, they have a large moat, they have a competitive advantage over their peers. So it's going to be very interesting to see what these financials hold, but nonetheless I'm not a financial advisor, everything in this video contains only my opinion and is for entertainment purposes only. I have no individual holding NKO, I have nothing to gain, nothing to lose, simply stating my opinion. I probably own it in my index fund so that is a sole tie. So going into the financials, we'll disconnect from the PE, we'll disconnect in profit, we'll disconnect in free cash flow, price of sales, definitely a little bit high, you're going to have to pay a premium for this type of company, competitive advantage, large moat, you're going to have to pay a premium for those types of companies, but matching the price of sales up to these gross margins and profit margins, I'd want to see these profit margins definitely higher for this type of price of sales. But that doesn't mean that's going to be bad or overvalued, that's simply just the way that's set up right now, who knows. Return on asset, pretty solid, return on equity, extremely good, 41%. This is shareholder value, the money that they get from shareholders, issuance of shares, buyback of shares. Very solid value, I would probably say Coke has been buying back a ton of shares through this time period, but is this a good time for them to be buying back shares? I don't know if I want to see them buying back shares up here, especially with a large price of sales, that's kind of an indicator to me that it is probably a little bit on the higher side, but you got to think, high inflationary times, the companies with a competitive advantage, that pricing power are probably going to prosper in time by this, and this stock price is held up pretty good, you're sitting back, collecting a dividend, now this dividend, 7.5 billion in dividends paid, matching that up at the free cash for year to date, that's around that 70%, and the five year average, that's over 90% payout ratio, so we're going to have to definitely check in on the dividends, see if it's growing, and see if they're buying back shares, if they're buying back shares, you have less shares to pay out a dividend to, so that could lower the amount of dividends paid. So a few things that we need to look into off a first glance, but let's take a look at the eight pillars. Oh man, I was not expecting to see that they were issuing shares, we're definitely going to have to go look at the shares and see if that trend is sort of changing, or if they're starting to dilute shares even more, possibly, I mean stock price has been holding up here pretty consistently since April, yeah I'd want to see the shares for sure, we're in a touch base on the debt, now matter of valuation with this eighth check mark and the first check mark, matter of valuation, but that doesn't mean that it's overvalued, so we are going to touch base on a few things, let's start with the shares outstanding, actually let's go revenue, so a huge increase in revenue right here, pretty consistent, now I can see they were actually decreasing consistently, let's go look at the previous year, so now we're in 2012 right here, oh wow man, guys you could have foam out into this, look at this growth, boom, boom, boom, boom, boom, boom, boom, boom, you could have said, oh man look at this growth, let's foam all into this, how much in the year 2012, how much did Coca-Cola have to grow, like how much more could they possibly grow and sustain this revenue growth, you see how easy it would have been to foam all into this, guys look at that, and what did they follow this up with, decrease, decrease, decrease, decrease, decrease, decrease, okay they held flat, okay now we're starting to get that increase again, like I said as you are, when you're in every single global market, you're going to have to be doing stuff with acquisitions, selling off brands, now Coca-Cola, I'm sure they have tons and tons of brands, I'd want to see them selling off parts of their business to bring in that extra cash, and then I'd want to see them making acquisitions that are going to get better value for, so they're selling off brands that they've got value from over the course of a long period of time, and they're selling them to a competitor to get cash for it, and then they take that cash, and then they maybe make an acquisition in a department that is going to prosper more, that is what I want to see with Coca-Cola, but we haven't got to the acquisitions yet, cost of goods sold, so high inflationary times guys, look at the cost of goods sold right here, you see this increase in cost of goods sold, now look at the revenue with it, increase in right along with it, but matching that up with gross profit, the gross profit is still increasing, this is what I was talking about with the pricing power, when they have that pricing power, competitive advantage over their peers, they are still actually increasing their gross profit, so that is not as much of a red flag, but you can still see this decline over the last ten years, that's very interesting, so let's go look at the shares outstanding, oh guys issuing shares, over the last five years, they are not moving this trend, they've been issuing shares, and look at the years before that, when they were decreasing as a business, they were diluting shares, or they were buying back shares, because they are looking at their shareholders and they are saying, okay we got to make sure that our shareholders are fine, so them buying back shares in those times is kind of looking out for the shareholders, let's go back to the revenue, you can see the revenue consistently decreasing, okay now in these years they are actually diluting shares, look at the stock price, they've been diluting shares through this whole time period right here, company invests their money very well, let's go back and look at the equity, 40% return on equity, this is the value that they get from shareholder money, issuance of shares, buy back of shares, I'm sure there's probably more in there but I know those three things calculate into return on equity, they do a very good job of it guys, is this growth going to be sustainable, how much more can do they have to grow, I see a couple specialty income chargers right here, I'm sure this is acquisition related, dividends is increasing, so they're issuing shares and increasing a dividend, so going back to the metrics tab, dividends paid, this amount of dividends paid is going to continue increasing, this immediately strikes a red flag with the free cash flow, we're definitely going to have to go look at free cash flow next and check that out, but first before we do that let's switch it to a quarterly, every column now represents a quarter and I can still see there consistently diluting shares here guys, consistently, so that is something to monitor for sure, especially with the price of cocoa being where it's at, it's held up pretty well, price of cocoa is held up pretty well, it's actually setting a lower high right here and yeah, is that growth going to be sustainable, that is a very good question, let's go to the cash flow statement, net income, so yeah, large spike in that income, I mean not too bad, cash from operations, they're doing pretty well, free cash flow, oh yeah guys, look at this, huge spike in free cash flow, huge spike in free cash flow, now look at the, oh here we go guys, acquisitions, this is very important right here, selling off department, they sold off brands or some sort of their business and got $1.83 billion, now look at the other acquisitions, oh I've seen they sold off another department here in 2017, so out of, I do not know for sure, but if I had to guess, if I had to assume, they got solid value out of these brands that they sold over the course of the entire history of cocoa, we go back to the metrics tab, let's turn this on max, I'm sure they got very solid value out of those brands and now they're selling those brands to get cash and they're using that cash to make other acquisitions, so I'm sure in their minds these were struggling departments that weren't as profitable for them, they're selling those off and now they're making acquisitions in departments where okay maybe there is value here, so a lot of acquisitions that you're not going to have to look into and also the selling of their departments, so gotta go look into those for sure. Hoo, what else we got, a payment of debt, issuance of capital stocks, so they're issuing shares and buying back shares, so they're doing both, that's where you see that high return on equity, they do a very good job of it, these guys definitely know what they're doing with their shares, 100%. The last thing we're going to look at in terms of financials is the debt metrics, so I see a little bit higher on the debt, but is Coca-Cola going anywhere, guys let's be honest, is Coca-Cola going anywhere, total assets 93 billion, I want to see total liabilities less than that, okay so they got a current ratio of around that 1.4, 1.38, if I had to guess, I don't know, total long-term liabilities 47 billion, their five-year average free cash flow, even though with the two pretty high increases from 2020, boom, boom, five-year average free cash flow 8 billion, so yeah it take about six years for them to pay off that long-term liabilities, but like I said, I don't think Coke's going anywhere, yeah pretty interesting stuff in the financials, I'd say nonetheless it's still a pretty fundamentally sound business, I'm going to be very interested to see, oh yeah that return on invested capital, we didn't look at that very much, so yeah they do invest their money very well, right around that five-year average, let's go and check up on that, so KO, return on invested capital, yeah they do a very good job, now a very bad year in 2017, but right back on track, yeah I'm not worried about their ability to invest their capital, especially when that return on equity is like that, and let's look at the revenue real quick, KO, Coca-Cola, we'll skip that part, yeah we're sitting at around 11 minutes, we're probably going to wrap this video up, in the next video you can expect me to make a video on the evaluation for Coca-Cola, I'm not sure what numbers I'm going to plug in, I'm not sure what numbers I'm going to see, and then we will wrap up the Coca-Cola series with the charting video after the evaluation video, so yeah pretty interesting stuff, I hope you guys enjoyed the content, and we will see you on the next one.