The Coca-Cola Company (KO)
Quick 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 | 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 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick 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
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 fluctuations over the past few years, ranging from a low of 0.51 to a high of 0.93. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations.
Analyzing the trend of the quick ratio, we can observe that it increased steadily from 0.55 in March 2020 to a peak of 0.93 in September 2021, indicating improved liquidity and ability to cover short-term liabilities. However, the ratio experienced a decline in the following quarters, reaching 0.51 by the end of December 2024.
It is crucial for stakeholders to closely monitor the quick ratio of The Coca-Cola Company to ensure its ability to meet its short-term financial obligations. A decreasing trend in the quick ratio may signal potential liquidity challenges that require further investigation and management attention.
Peer comparison
Dec 31, 2024