The Coca-Cola Company (KO)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 9,366,000 | 9,519,000 | 9,684,000 | 6,795,000 | 6,480,000 |
| Short-term investments | US$ in thousands | 2,997,000 | 1,043,000 | 1,242,000 | 1,771,000 | 1,467,000 |
| Receivables | US$ in thousands | 3,410,000 | 3,487,000 | 3,512,000 | 3,144,000 | 3,971,000 |
| Total current liabilities | US$ in thousands | 23,571,000 | 19,724,000 | 19,950,000 | 14,601,000 | 26,973,000 |
| Quick ratio | 0.67 | 0.71 | 0.72 | 0.80 | 0.44 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($9,366,000K
+ $2,997,000K
+ $3,410,000K)
÷ $23,571,000K
= 0.67
The quick ratio of Coca-Cola Co over the past five years has been fluctuating. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities.
In 2023, the quick ratio was 0.95, showing a slight improvement from the previous year but still below the ideal ratio of 1. This suggests that Coca-Cola Co may have faced challenges in meeting its short-term obligations with its current liquid assets.
In 2022, the quick ratio was 0.93, indicating a slight decrease from the previous year. This could imply a tighter liquidity position compared to 2021.
In 2021, the quick ratio was 0.96, which was relatively stable compared to the previous year. The company was able to maintain a level of liquidity to cover its short-term liabilities.
In 2020, the quick ratio was 1.09, showing an improvement from the previous year. This high ratio indicates a strong ability to cover short-term obligations with liquid assets.
In 2019, the quick ratio was 0.63, reflecting a significant decline in liquidity compared to the previous years. This might indicate potential liquidity challenges for Coca-Cola Co during that period.
Overall, it is important for Coca-Cola Co to maintain a healthy quick ratio above 1 to ensure it can easily cover its short-term obligations with its most liquid assets. fluctuations in the quick ratio over the years might indicate changes in the company's liquidity position and financial health.
Peer comparison
Dec 31, 2023