The Coca-Cola Company (KO)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 100,549,000 | 106,266,000 | 101,202,000 | 99,392,000 | 97,703,000 | 97,578,000 | 98,456,000 | 97,404,000 | 92,763,000 | 92,471,000 | 93,169,000 | 94,064,000 | 94,354,000 | 90,606,000 | 90,194,000 | 89,993,000 | 87,296,000 | 97,184,000 | 94,689,000 | 94,013,000 |
| Total stockholders’ equity | US$ in thousands | 24,856,000 | 26,518,000 | 25,853,000 | 26,429,000 | 25,941,000 | 26,325,000 | 26,013,000 | 25,217,000 | 24,105,000 | 22,805,000 | 23,005,000 | 24,845,000 | 22,999,000 | 22,179,000 | 22,249,000 | 20,355,000 | 19,299,000 | 18,607,000 | 17,484,000 | 18,158,000 |
| Financial leverage ratio | 4.05 | 4.01 | 3.91 | 3.76 | 3.77 | 3.71 | 3.78 | 3.86 | 3.85 | 4.05 | 4.05 | 3.79 | 4.10 | 4.09 | 4.05 | 4.42 | 4.52 | 5.22 | 5.42 | 5.18 |
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 fluctuations over the given period from March 31, 2020, to December 31, 2024. The ratio indicates the level of debt used by the company to finance its assets in comparison to shareholders' equity.
The trend of the financial leverage ratio has been decreasing from 5.18 on March 31, 2020, to 4.05 on June 30, 2022, before experiencing slight variations. The ratio decreased to 3.76 on March 31, 2024, and then increased to 4.05 on June 30, 2024.
The declining trend in the financial leverage ratio indicates that the company has been reducing its reliance on debt to finance its operations and acquisitions over the period. A lower ratio signifies a lesser financial risk as the company is using less debt to support its operations.
Overall, the decreasing trend in The Coca-Cola Company's financial leverage ratio is a positive indication of a more conservative financial structure and potentially lower financial risk. However, it is essential to consider other financial metrics and industry benchmarks to get a comprehensive understanding of the company's financial health and risk profile.
Peer comparison
Dec 31, 2024