The Coca-Cola Company (KO)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 10,631,000 | 10,714,000 | 9,542,000 | 9,771,000 | 7,747,000 |
| Total stockholders’ equity | US$ in thousands | 24,856,000 | 25,941,000 | 24,105,000 | 22,999,000 | 19,299,000 |
| ROE | 42.77% | 41.30% | 39.59% | 42.48% | 40.14% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $10,631,000K ÷ $24,856,000K
= 42.77%
The return on equity (ROE) for The Coca-Cola Company has shown a positive trend over the five-year period from December 31, 2020 to December 31, 2024. The ROE increased from 40.14% in 2020 to 42.77% in 2024, indicating that the company has been effectively utilizing shareholder equity to generate profits.
The company's ability to generate a higher ROE signifies efficient management of its assets and resources, as well as effective capital allocation strategies. The consistent improvement in ROE over the years reflects positively on the company's financial performance and profitability, potentially enhancing shareholder value.
Overall, The Coca-Cola Company's increasing ROE demonstrates its strong financial management and operational effectiveness, which may attract investors seeking companies with solid returns on equity.
Peer comparison
Dec 31, 2024