Coca-Cola Consolidated Inc. (COKE)

Short-term

Turnover ratios

Analysis of Coca-Cola Consolidated Inc activity ratios for the years 2019 to 2023 reveals interesting trends.

1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company's inventory is sold and replaced during a certain period.
- Coca-Cola Consolidated Inc's inventory turnover has fluctuated over the years, with a peak of 14.34 in 2020 and a low of 11.29 in 2022.
- A higher inventory turnover ratio indicates efficient management of inventory and quicker conversion of stock into sales.

2. Receivables Turnover:
- The receivables turnover ratio measures how many times a company collects its accounts receivable during a period.
- Coca-Cola Consolidated Inc's receivables turnover has remained relatively stable, ranging from 9.19 in 2019 to 10.23 in 2022.
- A higher receivables turnover ratio suggests effective credit and collection policies.

3. Payables Turnover:
- The payables turnover ratio measures how efficiently a company is managing its accounts payable.
- Coca-Cola Consolidated Inc's payables turnover has decreased over the years from 10.66 in 2019 to 7.75 in 2023.
- A lower payables turnover ratio may indicate a delay in paying suppliers, which could impact relationships with vendors.

4. Working Capital Turnover:
- The working capital turnover ratio measures how effectively a company utilizes its working capital to generate sales.
- Coca-Cola Consolidated Inc's working capital turnover has decreased consistently from 23.20 in 2019 to 10.84 in 2023.
- A declining working capital turnover ratio could signal inefficiencies in utilizing resources to drive revenue growth.

Overall, while Coca-Cola Consolidated Inc has shown fluctuations in its activity ratios over the years, maintaining a balance between inventory turnover, receivables turnover, payables turnover, and working capital turnover is crucial for sustainable operational efficiency and financial performance.

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Average number of days

The activity ratios of Coca-Cola Consolidated Inc have shown some fluctuation over the past five years.

The Days of Inventory on Hand (DOH) have ranged from a low of 25.44 days in 2020 to a high of 32.34 days in 2022. This ratio measures how many days it takes for the company to sell its inventory, with a lower number indicating efficient inventory management.

The Days of Sales Outstanding (DSO) have also varied, with the highest value of 39.72 days in 2019 and the lowest of 35.69 days in 2022. DSO reflects the average number of days it takes for the company to collect revenue from its customers, showing its effectiveness in credit and collection policies.

On the other hand, the Number of Days of Payables has shown a more consistent trend, with an increase over the years from 34.25 days in 2019 to 47.87 days in 2022. This ratio represents how long the company takes to pay its suppliers, with a higher number indicating favorable credit terms for the company.

Overall, these ratios provide insights into Coca-Cola Consolidated Inc's management of inventory, receivables, and payables, and can help stakeholders assess the company's operational efficiency and liquidity position.

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Long-term

The long-term activity ratios of Coca-Cola Consolidated Inc indicate the company's efficiency in utilizing its assets to generate sales. Looking at the fixed asset turnover ratio, which measures how well the company generates sales from its fixed assets, we observe a slight fluctuation over the past five years, ranging from 4.58 in 2020 to 5.21 in 2022. This suggests that the company has been fairly consistent in generating revenue from its investments in fixed assets.

On the other hand, the total asset turnover ratio, which evaluates the company's ability to generate sales from all its assets, has also shown stability over the years, hovering around the range of 1.54 to 1.67. This indicates that Coca-Cola Consolidated Inc efficiently utilizes both its fixed and current assets to generate sales and remains fairly consistent in this aspect.

Overall, these ratios suggest that Coca-Cola Consolidated Inc effectively manages its assets to drive revenue generation and maintain a good level of efficiency in its operations.