The Coca-Cola Company (KO)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	35,547,000	36,377,000	38,116,000	40,125,000	27,516,000
Total assets	US$ in thousands	97,703,000	92,763,000	94,354,000	87,296,000	86,381,000
Debt-to-assets ratio		0.36	0.39	0.40	0.46	0.32

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $35,547,000K ÷ $97,703,000K
= 0.36

The debt-to-assets ratio of Coca-Cola Co has shown a declining trend over the past five years, decreasing from 0.50 in 2019 to 0.43 in 2023. This indicates that the company has been relying less on debt to finance its assets or has been increasing its asset base relative to its debt.

A lower debt-to-assets ratio is generally considered favorable as it signifies lower financial risk and greater financial strength, as the company is less reliant on borrowed funds. It also indicates a better ability to meet its financial obligations and potentially signifies a more conservative financing strategy.

Overall, the decreasing trend in Coca-Cola Co's debt-to-assets ratio suggests improving financial health and prudent management of its capital structure over the years. However, it's important to consider other factors in conjunction with this ratio to get a comprehensive understanding of the company's overall financial position.