The Coca-Cola Company (KO)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 9,366,000 | 11,883,000 | 12,564,000 | 12,004,000 | 9,519,000 | 10,127,000 | 8,976,000 | 7,681,000 | 9,684,000 | 11,301,000 | 9,188,000 | 8,484,000 | 6,795,000 | 11,385,000 | 10,037,000 | 13,561,000 | 6,480,000 | 7,531,000 | 6,731,000 | 5,848,000 |
| Short-term investments | US$ in thousands | 2,997,000 | 2,332,000 | 1,867,000 | 1,166,000 | 1,043,000 | 1,120,000 | 776,000 | 736,000 | 1,242,000 | 1,844,000 | 2,079,000 | 1,871,000 | 1,771,000 | 7,347,000 | 7,551,000 | 1,713,000 | 1,467,000 | 2,001,000 | 2,572,000 | 1,335,000 |
| Total current liabilities | US$ in thousands | 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 | 26,973,000 | 25,100,000 | 29,382,000 | 27,943,000 |
| Cash ratio | 0.52 | 0.58 | 0.60 | 0.56 | 0.54 | 0.52 | 0.47 | 0.45 | 0.55 | 0.82 | 0.74 | 0.63 | 0.59 | 0.70 | 0.66 | 0.47 | 0.29 | 0.38 | 0.32 | 0.26 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($9,366,000K
+ $2,997,000K)
÷ $23,571,000K
= 0.52
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external financing.
Based on the data provided for Coca-Cola Co, the cash ratio has been relatively steady over the past eight quarters, ranging between 0.73 and 0.82. This suggests that the company has maintained a consistent level of liquidity to cover its short-term obligations.
In the most recent quarter (Q4 2023), the cash ratio was 0.80, indicating that for every dollar of current liabilities, Coca-Cola Co had $0.80 in cash and cash equivalents. This implies that the company remains in a strong position to meet its short-term financial obligations.
Overall, the stability and reasonable level of the cash ratio for Coca-Cola Co indicate a sound liquidity position, which is essential for weathering economic uncertainties and funding operational needs without relying heavily on external financing.
Peer comparison
Dec 31, 2023