The Coca-Cola Company (KO)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 10,828,000 | 13,938,000 | 13,708,000 | 10,443,000 | 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 |
| Short-term investments | US$ in thousands | 2,020,000 | 4,226,000 | 5,285,000 | 6,476,000 | 4,297,000 | 3,552,000 | 3,130,000 | 2,291,000 | 2,112,000 | 3,093,000 | 2,643,000 | 2,675,000 | 2,941,000 | 3,568,000 | 3,854,000 | 4,105,000 | 4,119,000 | 9,743,000 | 9,779,000 | 4,105,000 |
| 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 |
| Cash ratio | 0.51 | 0.64 | 0.65 | 0.60 | 0.58 | 0.63 | 0.65 | 0.61 | 0.59 | 0.62 | 0.57 | 0.55 | 0.63 | 0.93 | 0.85 | 0.76 | 0.75 | 0.79 | 0.74 | 0.55 |
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 been relatively stable over the years, ranging from 0.51 to 0.93. 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 cover short-term obligations.
From the data provided, the cash ratio showed an upward trend from March 2020 to September 2021, reaching its peak at 0.93. However, there was a slight decline in the ratio in the following quarters, stabilizing around 0.60 to 0.65 from March 2023 to June 2024.
Overall, The Coca-Cola Company has maintained a healthy cash position relative to its short-term liabilities, although there was a slight fluctuation in the ratio over the quarters. It is important for the company to monitor its cash reserves to ensure it can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024