The Coca-Cola Company (KO)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 14,740,000 | 14,388,000 | 14,491,000 | 13,726,880 | 14,182,840 | 14,408,780 | 14,452,750 | 15,451,780 | 14,704,760 | 15,383,750 | 15,104,730 | 16,491,760 | 16,204,760 | 15,515,770 | 15,044,770 | 16,031,780 | 15,924,790 | 15,878,800 | 16,364,810 | 13,921,820 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $14,740,000K ÷ ($—K + $24,856,000K)
= 59.30%
The Return on Total Capital of The Coca-Cola Company has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio started at a high of 76.67% in March 2020, peaked at 93.60% in June 2020, and then experienced some volatility before gradually decreasing.
From September 2021 to June 2022, there was a decline in the Return on Total Capital, falling to a low of 65.66% in June 2022. However, the ratio saw a slight recovery in the following quarters, reaching 59.30% by December 31, 2024.
Overall, the decreasing trend suggests that the company's ability to generate returns from its total capital has been gradually diminishing over the analyzed period. It would be important for stakeholders to further investigate the factors contributing to this decline and assess any potential strategies to improve the company's return on total capital in the future.
Peer comparison
Dec 31, 2024