The Coca-Cola Company (KO)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	10,631,000	10,409,000	10,648,000	10,784,000	10,714,000	10,772,000	10,510,000	9,868,000	9,542,000	9,925,000	9,571,000	10,307,000	9,771,000	8,813,000	8,079,000	9,992,000	10,522,000	11,108,000	11,964,000	10,017,000
Total stockholders’ equity	US$ in thousands	24,856,000	26,518,000	25,853,000	26,429,000	25,941,000	26,325,000	26,013,000	25,217,000	24,105,000	22,805,000	23,005,000	24,845,000	22,999,000	22,179,000	22,249,000	20,355,000	19,299,000	18,607,000	17,484,000	18,158,000
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%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $10,631,000K ÷ $24,856,000K
= 42.77%

The return on equity (ROE) of The Coca-Cola Company has shown some fluctuations over the past few years. The ROE was above 50% in the first half of 2020, peaking at 68.43% in June 2020. However, it started to decline in the second half of 2020 and continued to decrease throughout 2021, reaching a low of 36.31% in June 2021.

From June 2021 onwards, the ROE showed a slight improvement, reaching around 40% by the end of 2024. The ROE seems to have stabilized around this level in the most recent periods.

Overall, although there were fluctuations in the ROE, The Coca-Cola Company has generally maintained a healthy return on equity, indicating that it has been effectively utilizing shareholder equity to generate profits. The company's ability to sustain ROE levels above 40% in recent periods suggests strong profitability and efficiency in utilizing shareholder funds.