The Coca-Cola Company (KO)
Cash conversion cycle
| 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | 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 |
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 fluctuated over the past few years. The cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to December 31, 2024, the company's cash conversion cycle ranged from 70.94 days to 98.21 days. The cycle peaked at 98.21 days on March 31, 2024, possibly indicating challenges in efficiently managing inventory and collecting payments. This could be attributed to various factors such as changes in demand, pricing strategies, or supply chain disruptions.
On the other hand, the cycle reached its lowest point of 70.94 days on December 31, 2020, reflecting improved working capital management and faster conversion of investments into cash.
Overall, fluctuations in the cash conversion cycle suggest that The Coca-Cola Company may have experienced varying efficiencies in inventory management, accounts receivable collection, and payment practices over the analyzed period. It is important for the company to continuously monitor and optimize its cash conversion cycle to enhance its liquidity and operational efficiency.
Peer comparison
Dec 31, 2024
See also:
The Coca-Cola Company Cash Conversion Cycle (Quarterly Data)