The Coca-Cola Company (KO)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 13,086,000 | 12,952,000 | 11,686,000 | 12,425,000 | 9,749,000 |
| Revenue | US$ in thousands | 47,061,000 | 45,754,000 | 43,004,000 | 38,655,000 | 33,014,000 |
| Pretax margin | 27.81% | 28.31% | 27.17% | 32.14% | 29.53% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $13,086,000K ÷ $47,061,000K
= 27.81%
The Coca-Cola Company's pretax margin, which represents the company's profitability before taxes relative to its total revenue, has shown some fluctuations over the past five years.
- In December 2020, the pretax margin was 29.53%, indicating that for every dollar of revenue generated, the company earned 29.53 cents in profit before taxes.
- By December 2021, the pretax margin had increased to 32.14%, reflecting improved profitability.
- However, in December 2022, the pretax margin decreased to 27.17%, suggesting a decline in profitability compared to the previous year.
- The pretax margin then slightly increased to 28.31% by December 2023, showing some recovery.
- In December 2024, the pretax margin was 27.81%, which was slightly lower compared to the previous year.
Overall, the trend in The Coca-Cola Company's pretax margin has shown fluctuations over the five-year period, reflecting varying levels of profitability before taxes. It is important for the company to assess the factors contributing to these fluctuations and implement strategies to maintain and improve profitability in the future.
Peer comparison
Dec 31, 2024