The Coca-Cola Company (KO)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 10,828,000 | 9,366,000 | 9,519,000 | 9,684,000 | 6,795,000 |
| Short-term investments | US$ in thousands | 2,020,000 | 4,297,000 | 2,112,000 | 2,941,000 | 4,119,000 |
| Total current liabilities | US$ in thousands | 25,249,000 | 23,571,000 | 19,724,000 | 19,950,000 | 14,601,000 |
| Cash ratio | 0.51 | 0.58 | 0.59 | 0.63 | 0.75 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($10,828,000K
+ $2,020,000K)
÷ $25,249,000K
= 0.51
The cash ratio of The Coca-Cola Company has shown a declining trend over the years, decreasing from 0.75 on December 31, 2020, to 0.51 on December 31, 2024. This indicates that the company's ability to cover its short-term liabilities with cash and cash equivalents has weakened over this period. A lower cash ratio may suggest that the company may be less liquid and could potentially face challenges in meeting its immediate financial obligations. It is essential for stakeholders to carefully monitor this trend and assess the company's liquidity position in the context of its overall financial health and operational performance.
Peer comparison
Dec 31, 2024