Coca-Cola Consolidated Inc. (COKE)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 599,159 | 598,817 | 723,443 | 940,465 | 1,029,920 |
| Total stockholders’ equity | US$ in thousands | 1,435,600 | 1,115,390 | 711,786 | 512,990 | 346,952 |
| Debt-to-capital ratio | 0.29 | 0.35 | 0.50 | 0.65 | 0.75 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $599,159K ÷ ($599,159K + $1,435,600K)
= 0.29
The debt-to-capital ratio of Coca-Cola Consolidated Inc has shown a decreasing trend over the past five years, indicating an improving financial position in terms of leverage. The ratio decreased from 0.75 in 2019 to 0.30 in 2023, reflecting a significant reduction in the proportion of debt in the company's capital structure relative to equity. This decline suggests that the company has been effectively managing its debt levels and increasing its equity base, which can be seen as a positive sign for investors and creditors. A lower debt-to-capital ratio generally indicates lower financial risk and greater solvency for the company. It is essential to closely monitor this ratio in the future to assess the company's ability to meet its financial obligations and its overall financial health.
Peer comparison
Dec 31, 2023