The Coca-Cola Company (KO)

Working capital 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
Revenue (ttm)	US$ in thousands	47,061,000	46,366,000	46,465,000	46,074,000	45,754,000	45,030,000	44,140,000	43,493,000	43,004,000	42,343,000	41,322,000	40,126,000	38,655,000	37,802,000	36,412,000	42,034,000	41,615,000	42,072,000	42,927,000	37,173,000
Total current assets	US$ in thousands	25,997,000	30,288,000	31,599,000	29,462,000	26,732,000	27,867,000	27,591,000	26,880,000	22,591,000	24,139,000	23,141,000	22,156,000	22,545,000	24,240,000	22,481,000	21,932,000	19,240,000	30,410,000	29,371,000	28,234,000
Total current liabilities	US$ in thousands	25,249,000	28,569,000	29,263,000	28,356,000	23,571,000	24,409,000	24,115,000	23,357,000	19,724,000	21,439,000	20,531,000	18,787,000	19,950,000	15,990,000	15,299,000	16,486,000	14,601,000	26,891,000	26,848,000	32,397,000
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	—

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $47,061,000K ÷ ($25,997,000K – $25,249,000K)
= 62.92

The Working Capital Turnover ratio measures how efficiently a company is using its working capital to generate sales revenue. A higher ratio indicates that the company is effectively utilizing its working capital.

Looking at the data provided for The Coca-Cola Company, we observe fluctuations in the Working Capital Turnover ratio over the periods analyzed. The ratio ranged from as low as 4.58 in September 30, 2021, to as high as 62.92 in December 31, 2024.

In the recent period, there was a significant increase in the ratio, jumping from 14.47 in December 31, 2023, to 41.66 in March 31, 2024, suggesting a substantial improvement in the company's efficiency in utilizing its working capital to generate sales.

Overall, The Coca-Cola Company has demonstrated varying levels of effectiveness in managing its working capital in relation to sales revenue over the periods analyzed. The company's ability to maintain a healthy working capital turnover ratio is crucial for sustaining operational efficiency and financial performance.