Coca-Cola Consolidated Inc. (COKE)

Short-term

Turnover ratios

Coca-Cola Consolidated Inc's inventory turnover ratio has been relatively stable over the past eight quarters, ranging from 11.29 to 12.61. This indicates that the company efficiently manages its inventory levels and is able to sell its inventory multiple times within a year.

The receivables turnover ratio has also shown consistency over the same period, with values fluctuating between 9.16 and 10.23. This suggests that Coca-Cola Consolidated Inc effectively collects payments from its customers, on average, around 9 to 10 times per year.

In terms of payables turnover, the company has maintained a steady performance, with values ranging from 7.18 to 8.50. This indicates that Coca-Cola Consolidated Inc takes around 7 to 8 weeks to pay off its trade payables, on average, within a year.

The working capital turnover ratio has varied significantly over the quarters, reflecting how efficiently the company generates revenue from its working capital. The ratio ranged from 8.58 to 36.25, with higher values indicating a more efficient use of working capital to generate sales.

Overall, based on the activity ratios analysis, Coca-Cola Consolidated Inc appears to have a well-managed inventory, receivables, and payables, and achieves strong revenue generation from its working capital.

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Average number of days

The activity ratios for Coca-Cola Consolidated Inc provide insights into the efficiency of the company's management of its inventory, accounts receivable, and accounts payable.

1. Days of Inventory on Hand (DOH):
- The company's average days of inventory on hand have been relatively stable over the quarters, ranging from approximately 28 to 32 days.
- A lower DOH indicates that the company is selling its inventory quickly, while a higher DOH suggests slower turnover.
- Coca-Cola Consolidated Inc appears to manage its inventory efficiently, with the trend showing a slight decrease in DOH from Q4 2022 to Q4 2023.

2. Days of Sales Outstanding (DSO):
- DSO measures how quickly the company collects payments from its customers.
- The DSO for Coca-Cola Consolidated Inc fluctuates between approximately 35 to 39 days across the quarters.
- A lower DSO is generally preferred as it indicates faster cash conversion from sales to cash receipts.
- The company's DSO has been relatively consistent, showcasing consistent collections practices.

3. Number of Days of Payables:
- The number of days of payables reflects how long it takes the company to pay its suppliers.
- Coca-Cola Consolidated Inc's days of payables range from around 42 to 51 days, indicating varying payment terms with suppliers.
- A longer payment period can be beneficial for the company as it allows for better cash flow management.
- The trend in days of payables shows some variability but remains within a reasonable range over the quarters.

Overall, the activity ratios suggest that Coca-Cola Consolidated Inc is effectively managing its inventory turnover, accounts receivable collection, and accounts payable terms, contributing to the company's operational efficiency and financial stability.

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Long-term

Coca-Cola Consolidated Inc's long-term activity ratios provide insight into how efficiently the company is utilizing its assets to generate revenue. The fixed asset turnover ratio has been relatively stable, ranging from 5.02 to 5.51 over the last eight quarters. This ratio indicates that the company generates between $5.02 and $5.51 in revenue for every dollar invested in fixed assets.

The consistent high fixed asset turnover suggests that Coca-Cola Consolidated is effectively using its long-term assets to drive sales and profit. It indicates efficient management of fixed assets like property, plant, and equipment.

On the other hand, the total asset turnover ratio has shown a slight decline from 1.68 to 1.55 over the same period. This ratio measures the company's ability to generate sales from all its assets, including both long-term and short-term assets. A decreasing trend in total asset turnover could indicate that Coca-Cola Consolidated is becoming less efficient in its overall asset utilization.

In conclusion, while the company continues to effectively utilize its fixed assets to generate revenue, there may be room for improvement in optimizing the utilization of all its assets to drive sales growth and profitability in the long term.