The Coca-Cola Company is renowned for its superior cash flow, which enables the company to profitably distribute its brands in 200-plus countries while still funding appreciable share buybacks, as well as a dividend that currently yields 3.1%.
But in 2013, the beverage giant understood that it needed to generate still more cash from operations. With the hindsight of the company's brand investments over the last two years, from a $90 million stake in organic juice makerSuja Lifeto a $2.15 billion position inMonster Beverage, it's easy to grasp why management felt the need to improve its already vigorous cash flow.
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In the brief presentation below, we look at the fundamental strategy Coca-Cola chose to successfully tackle this business problem. For an insight into how the world's largest nonalcoholic beverage company is handling its money more efficiently, simply click through the following slideshow:
The article How the Coca-Cola Company Juiced Its Cash Flow by $600 Million originally appeared on Fool.com.
Asit Sharma has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Monster Beverage. The Motley Fool has the following options: long January 2016 $37 calls on Coca-Cola, short January 2016 $43 calls on Coca-Cola, and short January 2016 $37 puts on Coca-Cola. The Motley Fool recommends Coca-Cola. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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