Coca-Cola Consolidated Inc. (COKE)
Debt-to-equity 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-equity ratio | 0.42 | 0.54 | 1.02 | 1.83 | 2.97 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $599,159K ÷ $1,435,600K
= 0.42
The debt-to-equity ratio of Coca-Cola Consolidated Inc has shown a decreasing trend over the past five years, indicating an improvement in the company's overall financial leverage and solvency position. As of December 31, 2023, the debt-to-equity ratio stood at 0.42, suggesting that the company has a lower level of financial leverage with a relatively higher proportion of equity to debt in its capital structure.
Comparing this to the ratios of previous years, we observe a gradual decline in the debt-to-equity ratio from 3.05 in 2019 to 0.42 in 2023. This trend signifies a strategic shift towards a more conservative capital structure, possibly driven by deleveraging efforts or improved profitability leading to increased equity contributions.
A lower debt-to-equity ratio typically indicates lesser financial risk, as the company relies less on borrowed funds to finance its operations. It also implies a stronger financial position and better ability to withstand economic downturns or unexpected challenges.
Overall, the declining trend in Coca-Cola Consolidated Inc's debt-to-equity ratio over the past five years reflects a prudent approach to managing its capital structure and optimizing its financial position for long-term sustainability and growth.
Peer comparison
Dec 31, 2023