The Coca-Cola Company (KO)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	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	86,381,000	87,433,000	89,996,000	88,347,000
Total stockholders’ equity	US$ in thousands	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	18,981,000	18,713,000	18,181,000	17,735,000
Financial leverage ratio		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	4.55	4.67	4.95	4.98

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 some fluctuations over the past eight quarters. The ratio ranged from 3.71 to 4.05 during this period, indicating varying levels of financial leverage employed by the company.

A financial leverage ratio of 3.77 in Q4 2023 suggests that for every dollar of equity, the company has $3.77 of total assets. This indicates the extent to which Coca-Cola Co is utilizing debt to finance its operations and investments.

The trend of the financial leverage ratio shows a peak in Q3 2022 at 4.05, which may indicate a higher level of debt relative to equity at that point. It is noteworthy that the ratio decreased in subsequent quarters before showing a slight increase in Q4 2023.

Overall, the financial leverage ratio of Coca-Cola Co has exhibited fluctuations, but it is essential for stakeholders to monitor this metric to assess the company's capital structure and risk profile effectively.