Coca-Cola Consolidated Inc. (COKE)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 556,563 | 599,879 | 288,598 | 268,171 | 73,030 |
| Interest expense | US$ in thousands | -918 | 24,792 | 33,449 | 36,735 | 45,990 |
| Interest coverage | — | 24.20 | 8.63 | 7.30 | 1.59 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $556,563K ÷ $-918K
= —
Over the five-year period from 2019 to 2023, Coca-Cola Consolidated Inc's interest coverage ratio has shown a consistent upward trend, indicating the company's ability to meet its interest obligations with ease. The interest coverage ratio increased significantly from 3.93 in 2019 to 25.86 in 2022, reflecting a substantial improvement in the company's financial health. This improvement suggests that Coca-Cola Consolidated Inc is generating sufficient operating income to cover its interest expenses multiple times over, indicating a lower risk of default on its debt. A higher interest coverage ratio is generally viewed positively by investors and creditors as it indicates the company's robust financial position and ability to comfortably service its debt obligations. Further, the consistent improvement in the interest coverage ratio over the years demonstrates Coca-Cola Consolidated Inc's efficient management of its debt and effective utilization of its resources to generate profits.
Peer comparison
Dec 31, 2023