The Coca-Cola Company (KO)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 14,742,000 | 14,493,000 | 12,547,000 | 13,085,000 | 11,123,000 |
| Interest expense | US$ in thousands | 1,656,000 | 1,527,000 | 882,000 | 1,597,000 | 1,437,000 |
| Interest coverage | 8.90 | 9.49 | 14.23 | 8.19 | 7.74 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $14,742,000K ÷ $1,656,000K
= 8.90
The interest coverage ratio for The Coca-Cola Company has shown stability and improvement over the years. As of December 31, 2020, the interest coverage stood at 7.74, indicating the company's ability to cover its interest expenses nearly 8 times. By December 31, 2024, the ratio had increased to 8.90, suggesting a slightly stronger position in covering interest obligations. The highest interest coverage ratio was recorded on December 31, 2022, at 14.23, reflecting a significant improvement in the company's ability to meet interest payments. Overall, the consistent and generally increasing trend in the interest coverage ratio indicates a healthier financial position for The Coca-Cola Company in managing its interest expenses over the years.
Peer comparison
Dec 31, 2024