Coca-Cola Consolidated Inc. (COKE)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 858,502 | 975,552 | 965,176 | 939,706 | 930,354 | 815,740 | 789,366 | 703,106 | 628,081 | 499,344 | 449,407 | 424,604 | 386,669 | 453,887 | 418,497 | 378,066 | 317,631 | 226,557 | 177,540 | 164,098 |
| Interest expense (ttm) | US$ in thousands | 6,523 | 10,207 | 9,536 | 9,269 | 9,482 | 9,662 | 14,229 | 20,022 | 24,792 | 29,169 | 31,183 | 32,402 | 33,449 | 34,165 | 35,101 | 35,920 | 36,735 | 37,922 | 39,854 | 42,665 |
| Interest coverage | 131.61 | 95.58 | 101.21 | 101.38 | 98.12 | 84.43 | 55.48 | 35.12 | 25.33 | 17.12 | 14.41 | 13.10 | 11.56 | 13.29 | 11.92 | 10.53 | 8.65 | 5.97 | 4.45 | 3.85 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $858,502K ÷ $6,523K
= 131.61
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. Higher ratios indicate a stronger ability to cover interest expenses with operating income.
Analyzing the interest coverage ratios of Coca-Cola Consolidated Inc. over time, we observe a generally increasing trend from March 31, 2020, to December 31, 2024. The interest coverage ratio improved from 3.85 on March 31, 2020, to 131.61 on December 31, 2024.
The trend reflects an improvement in the company's ability to cover its interest expenses with operating income over the period. The ratios consistently increased, indicating a strengthening financial position and better ability to service debt through operating profits.
However, it is important to note the peak interest coverage ratio of 131.61 on December 31, 2024, and then a slight decrease to 95.58 on September 30, 2024. This decrease could signal a potential increase in the company's interest expenses or a temporary decline in operating income relative to the previous period.
Overall, the upward trend in interest coverage ratios for Coca-Cola Consolidated Inc. from 2020 to 2024 reflects positive financial management and a strong ability to meet interest obligations with operating earnings.
Peer comparison
Dec 31, 2024