The Coca-Cola Company (KO)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 14,490,000 | 14,387,000 | 14,123,000 | 13,330,000 | 12,539,000 | 12,849,000 | 12,494,000 | 14,422,000 | 13,989,000 | 13,553,000 | 13,101,000 | 11,177,000 | 11,165,000 | 11,144,000 | 11,632,000 | 12,405,000 | 11,667,000 | 10,196,000 | 9,519,000 | 9,429,000 |
| Long-term debt | US$ in thousands | 35,547,000 | 34,176,000 | 35,626,000 | 36,134,000 | 36,377,000 | 35,462,000 | 36,755,000 | 37,052,000 | 38,116,000 | 39,394,000 | 39,804,000 | 40,170,000 | 40,125,000 | 39,502,000 | 37,729,000 | 31,094,000 | 27,516,000 | 31,012,000 | 29,296,000 | 29,400,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 18,981,000 | 18,713,000 | 18,181,000 | 17,735,000 |
| Return on total capital | 23.57% | 23.78% | 22.91% | 21.73% | 20.73% | 22.05% | 20.91% | 23.30% | 22.89% | 22.01% | 21.11% | 18.47% | 18.79% | 19.18% | 21.07% | 25.19% | 25.09% | 20.50% | 20.05% | 20.00% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 relative stability over the past eight quarters, ranging from 19.78% to 22.10%. The company's ability to generate returns from the capital invested in its operations has been consistently strong, with an average of approximately 21%. This indicates effective capital allocation and operational efficiency, contributing to sustained profitability. Despite minor fluctuations, Coca-Cola Co's return on total capital remains robust, reflecting the company's solid financial performance and prudent management of resources.
Peer comparison
Dec 31, 2023