The Coca-Cola Company (KO)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 25,941,000 | 24,105,000 | 22,999,000 | 19,299,000 | 18,981,000 |
| Debt-to-capital ratio | 0.58 | 0.60 | 0.62 | 0.68 | 0.59 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $35,547,000K ÷ ($35,547,000K + $25,941,000K)
= 0.58
The debt-to-capital ratio of Coca-Cola Co has shown a decreasing trend over the past five years, from 0.69 in both 2019 and 2020 to 0.62 in 2023. This indicates that the company has been able to reduce its dependency on debt financing in relation to its total capital structure. A lower debt-to-capital ratio may suggest improved financial stability and lower financial risk for the company. It is important to continue monitoring this ratio to ensure that the company maintains a healthy balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2023