The Coca-Cola Company (KO)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 25,249,000 | 23,571,000 | 19,724,000 | 19,950,000 | 14,601,000 |
| Quick ratio | 0.51 | 0.58 | 0.59 | 0.63 | 0.75 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($10,828,000K
+ $2,020,000K
+ $—K)
÷ $25,249,000K
= 0.51
The quick ratio of The Coca-Cola Company has shown a declining trend over the past five years. Starting at 0.75 in December 31, 2020, it decreased to 0.51 by December 31, 2024. This indicates a weakening ability to meet short-term obligations with its most liquid assets. A quick ratio below 1 suggests that the company may face challenges in paying off its current liabilities without relying on selling inventory. It is essential for The Coca-Cola Company to closely monitor its liquidity position and take necessary steps to improve its ability to meet short-term obligations.
Peer comparison
Dec 31, 2024