Now at Amazon.com!
Take a look at Coke’s earnings per share for the past 10 years. Now look again. What do you see?
| EPS | |
| 1999 | $1.30 |
| 2000 | $1.48 |
| 2001 | $1.60 |
| 2002 | $1.23 |
| 2003 | $1.77 |
| 2004 | $2.00 |
| 2005 | $2.04 |
| 2006 | $2.16 |
| 2007 | $2.57 |
| 2008 | $2.49 |
| 2009 | $2.93 |
Although some bumps in the road exist, in 2002 for instance earnings per share dropped from the previous year’s $1.60 to $1.23, I see a strong, steady and growing track record of earnings. Overall, for this historic 10-year period, the earnings per share for Coke have been growing at a relatively steady 13.7%. This picture of steady, consistent and growing earnings is imperative to the small business income statement if you want to build a business that Warren Buffett would want to buy.
In the realm of small business, the earnings number will not necessarily be on a per share basis, but you can easily see the earnings picture using historic income statement or tax returns.
| Year | Earnings |
| 1999 | $ 10,000 |
| 2000 | $ 10,500 |
| 2001 | $ 11,000 |
| 2002 | $ 10,250 |
| 2003 | $ 11,100 |
| 2004 | $ 11,750 |
| 2005 | $ 12,000 |
| 2006 | $ 11,500 |
| 2007 | $ 12,100 |
| 2008 | $ 12,500 |
| 2009 | $ 12,400 |
Ideally, as in the case of Coke’s earnings per share, you will see an earnings level that is relatively consistent and growing over time.
And What We Do Not Want to See …
Below is the earnings per share record for a large technology company. Take a look at this earnings track record and note the roller coaster ride.
| Year | EPS |
| 2001 | -$0.36 |
| 2002 | $0.04 |
| 2003 | $0.58 |
| 2004 | $0.00 |
| 2005 | $0.96 |
| 2006 | $4.04 |
| 2007 | $0.40 |
| 2008 | $0.57 |
| 2009 | $1.95 |
| 2010 | $3.85 |
| 2011 | $7.88 |
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