The Coca-Cola Company (KO)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 14,490,000 | 12,539,000 | 13,989,000 | 11,165,000 | 11,667,000 |
| Interest expense | US$ in thousands | 1,527,000 | 882,000 | 1,597,000 | 1,437,000 | 946,000 |
| Interest coverage | 9.49 | 14.22 | 8.76 | 7.77 | 12.33 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $14,490,000K ÷ $1,527,000K
= 9.49
The interest coverage ratio for Coca-Cola Co has fluctuated over the past five years. In 2023, the interest coverage ratio was 24.12, showing a decrease from 2022 when it was 31.40. Despite the slight decline, the company's ability to cover its interest expenses remains strong. In 2021, there was a significant increase in the interest coverage ratio to 9.53 compared to 2020 and 2019 when it was 10.15 and 30.27, respectively. This suggests that in 2021, the company's earnings were more than sufficient to cover its interest obligations. Overall, the trend in Coca-Cola Co's interest coverage ratio indicates a generally healthy financial position with the ability to comfortably meet its interest payments.
Peer comparison
Dec 31, 2023