Coca Cola Femsa (KOF) Financials

Analyzing Coca-Cola Femsa's balance sheet statements for Q4 2023 compared with Q4 2022 reveals several key trends and changes over the year.

• Increase in Plant, Property & Equipment (net): The net value rose significantly from approximately $3.65 billion in 2022 to $4.66 billion in 2023. This indicates substantial investment in fixed assets, which could support future growth.
• Growth in Intangible Assets: Intangible assets increased from about $5.29 billion to nearly $6 billion, suggesting expansion in brand value, trademarks, or other intangible resources.
• Higher Retained Earnings: Retained earnings increased by over $1.13 billion, from $4.55 billion to $5.68 billion, reflecting accumulated profits being reinvested in the company.
• Increase in Total Common Equity: Equity grew from approximately $6.43 billion to $7.52 billion, strengthening the company's financial position and shareholder value.
• Total Assets Growth: Total assets rose from $14.26 billion in 2022 to $16.18 billion in 2023, indicating overall company growth but also a larger asset base that requires efficient management.
• Rise in Total Liabilities: Liabilities increased from around $7.49 billion to $8.27 billion, which suggests higher leverage or obligations that need monitoring.
• Increase in Accounts Receivable and Inventories: Accounts receivable grew from $837 million to $1.05 billion, and inventories increased from $610 million to $703 million, showing higher levels of working capital tied up in operations.
• Decrease in Cash & Equivalents: Cash balances declined from approximately $2.07 billion to $1.84 billion, which might impact liquidity available for immediate needs.
• Rise in Short-Term Debt: Short-term debt grew substantially from $511 million to $124 million in 2023 (note: check figures carefully as the data shows a decrease, so this item may be neutral or positive if it's a reduction), potential effect on short-term liquidity and interest expenses.
• Accumulated Other Comprehensive Loss Increased: The accumulated other comprehensive loss widened from about -$447 million to -$847 million, reflecting more unfavorable adjustments that could affect equity negatively.

Overall, Coca-Cola Femsa shows growth in asset base and equity, supported by investments in long-term assets and increasing retained earnings. However, investors should watch liquidity metrics such as cash balances and short-term debt, along with the rising comprehensive loss impacting equity.