Coca-Cola Consolidated Inc. (COKE)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 858,502 | 721,655 | 599,879 | 288,598 | 277,775 |
| Interest expense | US$ in thousands | 1,848 | 918 | 24,792 | 33,449 | 36,735 |
| Interest coverage | 464.56 | 786.12 | 24.20 | 8.63 | 7.56 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $858,502K ÷ $1,848K
= 464.56
The interest coverage ratio for Coca-Cola Consolidated Inc. has shown a positive trend over the past five years, indicating the company's ability to meet its interest obligations from its operating income.
As of December 31, 2020, the interest coverage ratio was 7.56, signifying that the company generated 7.56 times the amount needed to cover its interest expenses. This ratio improved to 8.63 by December 31, 2021, demonstrating a stronger ability to cover interest costs.
A significant leap was observed in the interest coverage ratio by December 31, 2022, reaching 24.20, indicating a substantial increase in the company's ability to pay off its interest payments comfortably. This trend continued to improve dramatically in the subsequent years, with the ratio soaring to 786.12 by December 31, 2023, and further to 464.56 by December 31, 2024.
The remarkable surge in the interest coverage ratio over the years reflects a strong financial position for Coca-Cola Consolidated Inc., underlining its robust profitability and operational efficiency in generating income to cover interest expenses. This trend suggests a favorable financial outlook for the company in meeting its debt obligations and indicates a stable and strong position in managing its financial commitments.
Peer comparison
Dec 31, 2024