Coca-Cola Consolidated Inc. (COKE)

Short-term

Turnover ratios

Based on the provided data for Coca-Cola Consolidated Inc., here is a detailed analysis of the activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio measures how effectively a company manages its inventory by showing how many times the inventory is sold and replaced during a period.
- The trend for Coca-Cola Consolidated Inc.'s inventory turnover shows a slight decrease from 14.34 in 2020 to 12.55 in 2024.
- A high inventory turnover ratio indicates efficient inventory management, but the decreasing trend may signal slower sales or excess inventory on hand.

2. Receivables Turnover:
- Unfortunately, there is no data available for the receivables turnover ratio for Coca-Cola Consolidated Inc.
- Receivables turnover ratio measures how efficiently a company collects payments from its customers.
- Without this data, it is challenging to assess the company's effectiveness in collecting receivables and managing credit policies.

3. Payables Turnover:
- Similarly, there is no data provided for the payables turnover ratio for Coca-Cola Consolidated Inc.
- Payables turnover ratio measures how quickly a company pays its suppliers.
- Absence of this data prevents the analysis of how effectively the company manages its accounts payable.

4. Working Capital Turnover:
- The working capital turnover ratio assesses how efficiently a company utilizes its working capital to generate sales.
- The trend for Coca-Cola Consolidated Inc.'s working capital turnover shows a significant decline from 24.52 in 2020 to 5.59 in 2024.
- This decreasing trend may indicate inefficiencies in utilizing working capital to support sales activities or a less effective overall working capital management strategy.

In conclusion, while the inventory turnover provides some insight into the company's operations, the absence of data for receivables and payables turnover limits a comprehensive analysis of Coca-Cola Consolidated Inc.'s overall activity ratios. The decline in working capital turnover warrants further investigation into the company's working capital management practices.

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Average number of days

The activity ratios of Coca-Cola Consolidated Inc. provide insights into the efficiency of the company's operations and management of working capital.

1. Days of Inventory on Hand (DOH):
- There has been a noticeable increase in the Days of Inventory on Hand from 25.44 days as of December 31, 2020, to 29.08 days as of December 31, 2024. This indicates that the company is taking slightly longer to turn its inventory into sales over the years analyzed.
- A higher DOH can imply that the company is overstocking inventory or facing challenges in selling products quickly, potentially impacting cash flow and profitability.

2. Days of Sales Outstanding (DSO):
- The data provided shows that DSO is not available for the years analyzed (indicated by "— days"). This may suggest that the company does not maintain detailed records or provide transparency on its accounts receivable collection period.
- Without information on DSO, it is difficult to assess how effectively Coca-Cola Consolidated is managing its accounts receivable and collecting payments from customers promptly.

3. Number of Days of Payables:
- Similar to DSO, data on the Number of Days of Payables is not available for the years provided (indicated by "— days"). This lack of information makes it challenging to evaluate the company's payment practices to suppliers.
- Understanding the days of payables is crucial in assessing how efficiently Coca-Cola Consolidated is using trade credit to manage its cash flow and relationships with suppliers.

In summary, while the Days of Inventory on Hand has shown an increase over time, the lack of data on Days of Sales Outstanding and Number of Days of Payables limits a comprehensive analysis of Coca-Cola Consolidated Inc.'s activity ratios.

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Long-term

The fixed asset turnover ratio for Coca-Cola Consolidated Inc. has shown a fluctuating trend over the past few years. In 2020, the ratio was 4.90, indicating that the company generated $4.90 in sales for every dollar invested in fixed assets. This ratio decreased to 4.51 in 2021 and then increased to 5.24 in 2022, showcasing improved efficiency in utilizing fixed assets to generate revenue.

However, the data for 2023 and 2024 is not available, so we cannot assess the trend for those years. It would be beneficial to monitor this ratio in subsequent years to understand if the improvement observed in 2022 is sustainable.

In contrast, the total asset turnover ratio has been on an upward trajectory from 1.55 in 2020 to 1.30 in 2024. This indicates that the company is generating more sales for each dollar of total assets employed. The increase in this ratio suggests improved efficiency in utilizing all assets, not just fixed assets, to generate revenue.

Overall, the company's ability to generate sales from both fixed and total assets has displayed varying trends over the years, emphasizing the importance of continuous monitoring and analysis to assess operational efficiency and performance.