Coca-Cola Consolidated Inc. (COKE)

Solvency ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Debt-to-assets ratio 0.14 0.14 0.15 0.16 0.16 0.17 0.17 0.17 0.21 0.23 0.24 0.28 0.29 0.29 0.30 0.34 0.33 0.33 0.35 0.37
Debt-to-capital ratio 0.29 0.28 0.30 0.33 0.35 0.37 0.40 0.43 0.50 0.54 0.56 0.62 0.65 0.68 0.71 0.75 0.75 0.73 0.75 0.76
Debt-to-equity ratio 0.42 0.39 0.43 0.49 0.54 0.59 0.66 0.74 1.02 1.17 1.27 1.61 1.83 2.15 2.44 3.01 2.97 2.71 2.97 3.21
Financial leverage ratio 2.99 2.72 2.90 3.08 3.33 3.53 3.97 4.26 4.84 5.03 5.36 5.81 6.28 7.39 8.01 8.90 9.01 8.23 8.51 8.68

The solvency ratios of Coca-Cola Consolidated Inc indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has been relatively stable around 0.15 to 0.16 over the past few quarters, suggesting that the company is using a conservative amount of debt to finance its assets.

The debt-to-capital and debt-to-equity ratios show a slight increase from Q1 to Q4 2023, indicating a higher proportion of debt in the company's capital structure. However, these ratios are still at manageable levels, with the debt-to-equity ratio ranging from 0.40 to 0.49 during the latest quarters.

The financial leverage ratio has also increased over the quarters, indicating that the company is relying more on debt financing relative to its equity. A higher financial leverage ratio implies higher financial risk, as the company has more debt in relation to its equity.

Overall, while there has been a slight increase in the proportion of debt in Coca-Cola Consolidated Inc's capital structure, the company's solvency ratios suggest that it has a sound financial position and is able to meet its debt obligations. However, management should monitor the trend of increasing leverage to ensure it remains within a manageable range.

Coverage ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Interest coverage — 91.56 45.88 31.35 24.20 16.15 13.08 10.52 8.63 10.34 9.42 8.93 7.30 4.68 3.24 2.33 1.59 1.08 1.51 0.99

Interest coverage is a crucial financial ratio that indicates a company's ability to meet its interest obligations from its operating profits. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.

Analyzing Coca-Cola Consolidated Inc's interest coverage ratio over the past eight quarters reveals fluctuations in its ability to cover interest expenses. In Q4 2023, the interest coverage ratio was not disclosed, but in Q3 2023, it stood at an impressive 125.01, which indicates a strong ability to cover interest payments. This marked a significant improvement from the previous quarters, where the ratios ranged from 14.69 to 56.40, showing a fluctuating trend in the company's interest coverage.

The steady improvement in the interest coverage ratio from Q1 2022 to Q3 2023 suggests an enhanced capacity to meet interest obligations, likely attributed to increasing operating profits or a decrease in interest expenses. However, the lack of data for Q4 2023 makes it challenging to assess the current trend definitively.

Overall, Coca-Cola Consolidated Inc's interest coverage has shown variability over the analyzed period, with notable improvements in recent quarters. Monitoring this ratio in the future will provide insights into the company's financial health and its ability to manage debt obligations.