The Coca-Cola Company (KO)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	62.92	26.97	19.89	41.66	14.47	13.02	12.70	12.35	15.00	15.68	15.83	11.91	14.90	4.58	5.07	7.72	8.97	11.96	17.01	—

Inventory Turnover:
The inventory turnover ratio for The Coca-Cola Company has shown some fluctuations over the years but has generally remained within a range of 3.72 to 5.15. This ratio measures how efficiently the company manages its inventory by indicating the number of times the inventory is sold and replaced in a given period. A higher ratio is generally preferred as it suggests that inventory is being managed efficiently.

Receivables Turnover:
The data provided does not include receivables turnover information for The Coca-Cola Company, which indicates a lack of detail in analyzing how quickly the company collects on credit sales. A higher receivables turnover ratio would indicate that the company is collecting its receivables faster, which is typically positive.

Payables Turnover:
Similar to receivables turnover, the data does not include payables turnover information for The Coca-Cola Company. This ratio helps in understanding how efficiently the company is paying its suppliers and managing its trade credit. A higher payables turnover ratio may signal that the company is effectively managing its payables.

Working Capital Turnover:
The working capital turnover ratio reflects how efficiently The Coca-Cola Company is utilizing its working capital to generate sales. The ratio has varied notably over the years, ranging from 4.58 to 62.92. A higher working capital turnover ratio is generally favorable as it indicates that the company is generating more revenue per unit of working capital invested. The significant increase in the ratio from 2023 to 2024 could suggest improved operational efficiency in utilizing working capital.

Average number of days

		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
Days of inventory on hand (DOH)	days	94.18	93.79	94.80	98.21	87.19	84.35	92.63	94.66	85.84	77.01	77.81	85.65	81.14	78.23	83.51	72.32	70.94	70.95	74.78	88.80
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Activity ratios help analyze how efficiently a company is managing its resources to generate sales and cash flow. For The Coca-Cola Company, let's focus on Days of Inventory on Hand (DOH).

The trend in Coca-Cola's DOH ratio from March 31, 2020, to December 31, 2024, shows fluctuations. The DOH increased from 88.80 days on March 31, 2020, to 98.21 days on March 31, 2024, indicating that the company has been carrying more inventory on average. This could suggest slower inventory turnover or challenges in managing inventory levels efficiently.

Although some fluctuations are normal for companies in consumer goods industries like beverages, the increasing trend in DOH for Coca-Cola should be monitored. Higher inventory levels can tie up cash, increase storage costs, and risk obsolescence.

Further analysis should be conducted to understand the reasons behind the increasing DOH trend. This could involve examining supply chain efficiency, production forecasting, and demand fluctuations to address any potential inefficiencies in inventory management.

Long-term

	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
Fixed asset turnover	—	—	—	—	—	5.08	4.55	4.42	4.37	4.58	4.37	4.10	3.90	3.76	3.45	3.94	3.86	3.94	4.01	3.38
Total asset turnover	0.47	0.44	0.46	0.46	0.47	0.46	0.45	0.45	0.46	0.46	0.44	0.43	0.41	0.42	0.40	0.47	0.48	0.43	0.45	0.40

The Fixed Asset Turnover ratio for The Coca-Cola Company has shown an increasing trend over the period from March 31, 2020, to September 30, 2023. This ratio measures how efficiently the company is utilizing its fixed assets to generate revenue, and the increase from 3.38 to 5.08 indicates that Coca-Cola has been more efficient in generating sales from its fixed assets during this time frame.

On the other hand, the Total Asset Turnover ratio, which measures how efficiently the company generates sales from all its assets, has been relatively stable, fluctuating between 0.40 and 0.47 from March 31, 2020, to December 31, 2024. This implies that while the company has been improving its efficiency in utilizing fixed assets, the overall efficiency in generating sales from all assets has remained relatively consistent.

Overall, the trend in the Fixed Asset Turnover ratio suggests that Coca-Cola has been effectively managing and utilizing its fixed assets to drive revenue growth over the years analyzed. However, it is important to monitor the Total Asset Turnover ratio to ensure the company is efficiently utilizing all its assets to maximize sales.