The Coca-Cola Company (KO)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 100,549,000 | 97,703,000 | 92,763,000 | 94,354,000 | 87,296,000 |
| Total stockholders’ equity | US$ in thousands | 24,856,000 | 25,941,000 | 24,105,000 | 22,999,000 | 19,299,000 |
| Financial leverage ratio | 4.05 | 3.77 | 3.85 | 4.10 | 4.52 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $100,549,000K ÷ $24,856,000K
= 4.05
The financial leverage ratio of The Coca-Cola Company has shown a decreasing trend over the five-year period from December 31, 2020, to December 31, 2024. The ratio decreased from 4.52 in 2020 to 3.77 in 2023 before slightly increasing to 4.05 in 2024. A lower financial leverage ratio indicates that the company relies less on debt to finance its operations and growth, which can be seen as a positive sign of financial stability and lower risk. However, it's essential to keep monitoring the trend to ensure it remains at an optimal level to support sustainable growth and profitability.
Peer comparison
Dec 31, 2024