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.
Peer comparison
Dec 31, 2023