The Coca-Cola Company (KO)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	18,324,000	18,345,000	18,338,000	18,438,000	18,520,000	18,399,000	18,308,000	18,226,000	18,000,000	17,575,000	16,986,000	15,943,000	15,357,000	14,847,000	14,341,000	16,938,000	16,804,000	16,792,000	17,088,000	14,625,000
Inventory	US$ in thousands	4,728,000	4,714,000	4,763,000	4,961,000	4,424,000	4,252,000	4,646,000	4,727,000	4,233,000	3,708,000	3,621,000	3,741,000	3,414,000	3,182,000	3,281,000	3,356,000	3,266,000	3,264,000	3,501,000	3,558,000
Inventory turnover		3.88	3.89	3.85	3.72	4.19	4.33	3.94	3.86	4.25	4.74	4.69	4.26	4.50	4.67	4.37	5.05	5.15	5.14	4.88	4.11

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $18,324,000K ÷ $4,728,000K
= 3.88

Inventory turnover is a key financial ratio that measures how efficiently a company is managing its inventory levels. It indicates how many times a company sells and replaces its inventory over a specific period. A higher inventory turnover ratio generally implies better inventory management and indicates that the company is selling products quickly.

Analyzing The Coca-Cola Company's inventory turnover data from March 31, 2020, to December 31, 2024, we can observe fluctuations in the ratio over time. The inventory turnover ratio ranged from a low of 3.72 in March 31, 2024, to a high of 5.15 on December 31, 2020.

Overall, the trend in The Coca-Cola Company's inventory turnover shows some variability, with the ratio fluctuating between 3.72 and 5.15 over the period. This variability could be influenced by factors such as seasonal demand for products, changes in production and distribution processes, or shifts in consumer preferences.

It is essential for the company to closely monitor its inventory turnover ratio and strive for consistency and efficiency in managing its inventory levels. A stable and optimal inventory turnover ratio indicates effective inventory control, which can help reduce carrying costs and enhance profitability.