The Coca-Cola Company (KO)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 11,311,000 | 10,909,000 | 10,308,000 | 8,997,000 | 10,086,000 |
| Total assets | US$ in thousands | 97,703,000 | 92,763,000 | 94,354,000 | 87,296,000 | 86,381,000 |
| Operating ROA | 11.58% | 11.76% | 10.92% | 10.31% | 11.68% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $11,311,000K ÷ $97,703,000K
= 11.58%
Coca-Cola Co's operating return on assets (operating ROA) has shown a generally positive trend over the past five years, increasing from 12.21% in 2019 to 13.57% in 2023. This indicates that the company has been able to generate higher operating profits relative to its total assets employed in its operations.
The consistent improvement in operating ROA reflects Coca-Cola Co's ability to efficiently utilize its assets to generate operating income. It suggests that the company is effectively managing its operations and assets to maximize profitability.
The upward trend in operating ROA may be attributed to various factors such as effective cost control measures, streamlined operations, optimized asset utilization, and strategic decision-making. This indicates that Coca-Cola Co has been successful in enhancing its operational efficiency and profitability over the years.
Overall, the increasing trend in operating ROA demonstrates Coca-Cola Co's strong operational performance and efficiency in generating returns from its assets, which bodes well for its financial health and sustainable growth in the long term.
Peer comparison
Dec 31, 2023