The Coca-Cola Company (KO)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 61.06% | 60.43% | 60.53% | 59.98% | 59.52% | 59.14% | 58.52% | 58.09% | 58.14% | 58.49% | 58.89% | 60.27% | 60.27% | 60.72% | 60.61% | 59.70% | 59.62% | 60.09% | 60.19% | 60.66% |
| Operating profit margin | 21.23% | 20.61% | 22.20% | 21.89% | 24.72% | 24.68% | 24.76% | 27.34% | 27.73% | 27.22% | 27.43% | 27.39% | 26.67% | 29.03% | 28.49% | 27.88% | 27.34% | 26.63% | 26.57% | 26.98% |
| Pretax margin | 27.81% | 27.52% | 27.80% | 27.72% | 28.31% | 28.80% | 29.17% | 28.24% | 27.17% | 28.68% | 28.52% | 32.70% | 32.14% | 31.28% | 30.00% | 29.77% | 30.66% | 30.47% | 31.98% | 31.13% |
| Net profit margin | 22.59% | 22.45% | 22.92% | 23.41% | 23.42% | 23.92% | 23.81% | 22.69% | 22.19% | 23.44% | 23.16% | 25.69% | 25.28% | 23.31% | 22.19% | 23.77% | 25.28% | 26.40% | 27.87% | 26.95% |
The profitability ratios of The Coca-Cola Company show variations over the analyzed periods:
1. Gross Profit Margin: The gross profit margin fluctuated between 58.14% and 61.06% during the period. Despite some fluctuations, the company maintained a relatively stable gross profit margin overall, indicating efficient cost management in generating sales.
2. Operating Profit Margin: The operating profit margin ranged from 20.61% to 29.03% over the period. There were significant fluctuations observed, with a downward trend noted in recent quarters, possibly due to changes in operating expenses or revenue challenges.
3. Pretax Margin: The pretax margin displayed fluctuations between 27.17% and 32.70% during the analyzed periods. The trend shows some volatility in the company's ability to generate profits before taxes, with a notable decline in the middle of the period followed by a gradual recovery.
4. Net Profit Margin: The net profit margin varied from 22.19% to 27.87% over the analyzed quarters. The company experienced fluctuations in net profitability, with some quarters showing improved margins while others had decreases. The overall trend indicates that the company faced challenges in maintaining consistent net profit margins.
In conclusion, The Coca-Cola Company displayed varied profitability trends in its financial performance, with fluctuations observed across gross, operating, pretax, and net profit margins. The company may need to focus on optimizing operational efficiency and managing costs to sustain and improve its profitability in the future.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.94% | 8.99% | 10.19% | 10.15% | 11.58% | 11.39% | 11.10% | 12.21% | 12.86% | 12.46% | 12.16% | 11.68% | 10.92% | 12.11% | 11.50% | 13.02% | 13.03% | 11.53% | 12.04% | 10.67% |
| Return on assets (ROA) | 10.57% | 9.80% | 10.52% | 10.85% | 10.97% | 11.04% | 10.67% | 10.13% | 10.29% | 10.73% | 10.27% | 10.96% | 10.36% | 9.73% | 8.96% | 11.10% | 12.05% | 11.43% | 12.64% | 10.65% |
| Return on total capital | 59.30% | 54.26% | 56.05% | 51.94% | 54.67% | 54.73% | 55.56% | 61.28% | 61.00% | 67.46% | 65.66% | 66.38% | 70.46% | 69.96% | 67.62% | 78.76% | 82.52% | 85.34% | 93.60% | 76.67% |
| Return on equity (ROE) | 42.77% | 39.25% | 41.19% | 40.80% | 41.30% | 40.92% | 40.40% | 39.13% | 39.59% | 43.52% | 41.60% | 41.49% | 42.48% | 39.74% | 36.31% | 49.09% | 54.52% | 59.70% | 68.43% | 55.17% |
The Coca-Cola Company's profitability ratios have shown varying trends over the past few years.
- Operating return on assets (Operating ROA) has fluctuated between 8.99% to 13.03% during the period. The highest point was seen in December 31, 2020, and the lowest point was observed on September 30, 2024.
- Return on assets (ROA) ranged from 8.96% to 12.64% over the same period. The highest value was recorded on June 30, 2020, while the lowest was seen on September 30, 2024.
- Return on total capital ranged from 51.94% to 93.60% during the period, showing a declining trend overall. The highest point was on June 30, 2020, and the lowest was on December 31, 2024.
- Return on equity (ROE) fluctuated between 36.31% to 68.43% during the period. The highest value was seen on June 30, 2020, and the lowest was on March 31, 2023.
Overall, The Coca-Cola Company has generally maintained strong profitability ratios, but there have been fluctuations in performance over the years, indicating the need for strategic management of assets and capital to ensure sustained financial performance.