The Coca-Cola Company (KO)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 97,703,000 | 92,763,000 | 94,354,000 | 87,296,000 | 86,381,000 |
| Total stockholders’ equity | US$ in thousands | 25,941,000 | 24,105,000 | 22,999,000 | 19,299,000 | 18,981,000 |
| Financial leverage ratio | 3.77 | 3.85 | 4.10 | 4.52 | 4.55 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $97,703,000K ÷ $25,941,000K
= 3.77
The financial leverage ratio of Coca-Cola Co has shown a decreasing trend over the past five years, indicating a reduction in the company's reliance on debt to finance its operations and investments. The ratio decreased from 4.55 in 2019 to 3.77 in 2023. This suggests that the company has been effectively managing its debt levels and working towards a more balanced capital structure. A decreasing financial leverage ratio typically indicates improved financial stability and lower financial risk for the company. It also demonstrates the company's ability to generate sufficient earnings to cover its interest payments and debt obligations. Overall, the trend in Coca-Cola Co's financial leverage ratio reflects a positive development in its financial health and debt management practices.
Peer comparison
Dec 31, 2023