The Coca-Cola Company (KO)

Debt-to-equity 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-equity ratio		1.37	1.51	1.66	2.08	1.45

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $35,547,000K ÷ $25,941,000K
= 1.37

The debt-to-equity ratio of Coca-Cola Co has shown a decreasing trend from 2.25 in 2019 to 1.62 in both 2022 and 2023. This indicates that the company has been reducing its reliance on debt financing compared to equity over the years. However, in 2021 and 2020, the ratio increased to 1.86 and 2.22, respectively, suggesting a period of higher debt levels relative to equity during those years.

Overall, a debt-to-equity ratio of around 1.62 to 2.25 over the past five years indicates that Coca-Cola Co has maintained a moderate level of financial leverage, with a fluctuation in the ratio reflecting changes in the company's capital structure. It is essential to assess the specific reasons behind these fluctuations and how they align with the company's strategic objectives and financial performance.