The Coca-Cola Company (KO)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 14,490,000 | 12,539,000 | 13,989,000 | 11,165,000 | 11,667,000 |
| Long-term debt | US$ in thousands | 35,547,000 | 36,377,000 | 38,116,000 | 40,125,000 | 27,516,000 |
| Total stockholders’ equity | US$ in thousands | 25,941,000 | 24,105,000 | 22,999,000 | 19,299,000 | 18,981,000 |
| Return on total capital | 23.57% | 20.73% | 22.89% | 18.79% | 25.09% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $14,490,000K ÷ ($35,547,000K + $25,941,000K)
= 23.57%
Coca-Cola Co's return on total capital has shown a positive trend over the past five years, indicating an improving efficiency in generating profits relative to the total capital employed in the business. The return on total capital increased from 18.78% in 2019 to 21.99% in 2023, reaching its highest point during this period.
This upward trend suggests that the company has been effectively utilizing its capital to generate returns for its shareholders. The consistent growth in return on total capital reflects strong operational performance and effective management of resources.
Overall, the increasing trend in Coca-Cola Co's return on total capital demonstrates the company's ability to generate profits efficiently and maximize shareholder value over the years.
Peer comparison
Dec 31, 2023