Coca-Cola Consolidated Inc. (COKE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 39.90% | 39.06% | 36.74% | 35.13% | 35.33% |
| Operating profit margin | 13.34% | 12.54% | 10.34% | 5.19% | 6.26% |
| Pretax margin | 12.42% | 8.38% | 9.27% | 4.59% | 4.81% |
| Net profit margin | 9.18% | 6.14% | 6.94% | 3.41% | 3.44% |
Coca-Cola Consolidated Inc.'s profitability ratios demonstrate a generally positive trend over the analyzed period.
- Gross profit margin has shown slight fluctuation but overall improvement, increasing from 35.33% in 2020 to 39.90% in 2024. This indicates the company's ability to manage costs efficiently and generate more revenue from its core operations.
- Operating profit margin experienced a dip in 2021 but has steadily risen thereafter, reaching 13.34% in 2024. This suggests that the company has effectively controlled its operating expenses and is becoming more profitable in its day-to-day operations.
- Pretax margin exhibits an upward trajectory, climbing from 4.81% in 2020 to 12.42% in 2024. This indicates that the company has been successful in increasing its profitability before accounting for taxes, potentially through strategic business decisions and improved operational efficiency.
- Net profit margin, reflecting the company's bottom-line profitability, has shown consistent growth from 3.44% in 2020 to 9.18% in 2024. This signifies that Coca-Cola Consolidated Inc. has been successful in translating its revenue into profit, indicating strong overall financial health and management effectiveness.
Overall, Coca-Cola Consolidated Inc.'s profitability ratios demonstrate a positive trend, highlighting the company's ability to efficiently manage costs, increase profitability, and maximize returns for its shareholders over the analyzed period.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 17.32% | 19.46% | 17.28% | 8.38% | 9.72% |
| Return on assets (ROA) | 11.92% | 9.52% | 11.60% | 5.50% | 5.35% |
| Return on total capital | 60.56% | 50.27% | 53.78% | 40.55% | 54.15% |
| Return on equity (ROE) | 44.66% | 28.45% | 38.57% | 26.63% | 33.63% |
Coca-Cola Consolidated Inc.'s profitability ratios have shown fluctuations over the years based on the provided data.
1. Operating Return on Assets (Operating ROA): The Operating ROA measures the company's operating income generated per dollar of assets. From 2020 to 2024, Coca-Cola Consolidated Inc.'s Operating ROA decreased from 9.72% to 8.38% in 2021 but then showed a significant improvement, reaching 19.46% in 2023 before slightly dropping to 17.32% in 2024. The company managed to improve its operational efficiency in 2023, resulting in higher returns compared to the previous years.
2. Return on Assets (ROA): The ROA evaluates how effectively the company is utilizing its total assets to generate profits. Coca-Cola Consolidated Inc.'s ROA increased steadily from 5.35% in 2020 to 11.92% in 2024. The company's ability to generate increasing returns on its assets indicates improved profitability and efficiency over the years.
3. Return on Total Capital: This ratio reflects the overall return earned by the company's total capital, including debt and equity. Coca-Cola Consolidated Inc.'s Return on Total Capital fluctuated over the period, ranging from 40.55% in 2021 to 60.56% in 2024. The company demonstrated strong capital efficiency in 2024, achieving the highest return during the period.
4. Return on Equity (ROE): The ROE measures the return generated on shareholders' equity. Coca-Cola Consolidated Inc.'s ROE varied, showing a decline from 33.63% in 2020 to 26.63% in 2021, but then increased to 44.66% in 2024. The company managed to enhance shareholder value in 2024, indicating improved profitability relative to shareholders' equity.
In conclusion, Coca-Cola Consolidated Inc. has exhibited mixed performance in profitability ratios over the years, experiencing fluctuations but managing to improve profitability and operational efficiency, particularly in 2023 and 2024.