Coca-Cola Consolidated Inc. (COKE)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,288,940 | 3,709,540 | 3,445,570 | 3,222,450 | 3,126,930 |
| Total stockholders’ equity | US$ in thousands | 1,435,600 | 1,115,390 | 711,786 | 512,990 | 346,952 |
| Financial leverage ratio | 2.99 | 3.33 | 4.84 | 6.28 | 9.01 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,288,940K ÷ $1,435,600K
= 2.99
The financial leverage ratio of Coca-Cola Consolidated Inc has been declining over the past five years, indicating a decreasing reliance on debt to finance its operations. The ratio decreased from 9.01 in 2019 to 2.99 in 2023. This trend suggests that the company has been gradually reducing its debt levels relative to its equity, which can be a positive sign of financial stability and lower risk. A lower financial leverage ratio indicates that the company is less vulnerable to changes in interest rates and has a stronger ability to meet its debt obligations. Overall, the decreasing trend in the financial leverage ratio of Coca-Cola Consolidated Inc may signal improved financial health and risk management.
Peer comparison
Dec 31, 2023