The Coca-Cola Company (KO)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 9,992,000 | 11,311,000 | 10,909,000 | 10,308,000 | 8,997,000 |
| Total assets | US$ in thousands | 100,549,000 | 97,703,000 | 92,763,000 | 94,354,000 | 87,296,000 |
| Operating ROA | 9.94% | 11.58% | 11.76% | 10.92% | 10.31% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $9,992,000K ÷ $100,549,000K
= 9.94%
The operating return on assets (ROA) of The Coca-Cola Company has shown a generally positive trend over the past five years. Starting at 10.31% as of December 31, 2020, the operating ROA increased to 11.76% by the end of 2022, reflecting an improvement in operational efficiency and profitability. However, there was a slight decline to 11.58% by December 31, 2023, and a more noticeable decrease to 9.94% by the end of 2024.
Despite the fluctuations in the operating ROA, The Coca-Cola Company has managed to maintain relatively healthy returns on its assets, indicating its ability to generate profits from its core operations relative to the size of its asset base. It is important for the company to closely monitor this ratio to ensure efficient asset utilization and sustainable profitability in the long run.
Peer comparison
Dec 31, 2024