The Coca-Cola Company (KO)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 94.18 | 87.19 | 85.84 | 81.14 | 88.74 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 94.18 | 87.19 | 85.84 | 81.14 | 88.74 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 94.18 + — – —
= 94.18
The cash conversion cycle of The Coca-Cola Company has shown fluctuations over the past five years. In 2020, the cash conversion cycle was 88.74 days, decreasing to 81.14 days in 2021 before increasing to 85.84 days in 2022. In 2023, the cash conversion cycle slightly increased to 87.19 days, and by the end of 2024, it reached 94.18 days.
A longer cash conversion cycle indicates that the company takes more time to convert its investments in inventory and other resources into cash from sales, which may tie up capital and impact liquidity. The trend in Coca-Cola's cash conversion cycle suggests some variability in its operational efficiency and working capital management over the years. Further analysis and comparison with industry benchmarks could provide insights into the company's financial performance and efficiency in managing its cash flows.
Peer comparison
Dec 31, 2024