The Coca-Cola Company (KO)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios of The Coca-Cola Company, specifically the debt-to-assets ratio, debt-to-capital ratio, debt-to-equity ratio, and financial leverage ratio, have remained consistently low over the past few years.
The debt-to-assets ratio, which measures the proportion of a company's assets financed by debt, has been consistently at 0.00, indicating that the company has not relied heavily on debt to finance its operations.
Similarly, the debt-to-capital ratio, which assesses the percentage of a company's capital that is financed by debt, has also remained stable at 0.00, suggesting that the company has been able to maintain a strong capital structure without significant reliance on debt.
The debt-to-equity ratio, which compares a company's total debt to its shareholder's equity, has also consistently been at 0.00, indicating that the company has a low level of debt relative to its equity.
The financial leverage ratio, which measures how much debt a company uses to finance its assets relative to equity, has shown a decreasing trend over the years, indicating that the company has been reducing its reliance on debt to fund its operations.
Overall, the solvency ratios of The Coca-Cola Company reflect a strong financial position with low debt levels and a solid capital structure, which bodes well for the company's long-term financial stability and ability to meet its financial obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 8.90 | 8.78 | 9.17 | 8.93 | 9.29 | 10.16 | 11.58 | 14.41 | 16.67 | 20.70 | 20.01 | 12.33 | 10.15 | 8.91 | 6.86 | 8.53 | 9.77 | 10.21 | 14.55 | 15.57 |
The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. The trend of The Coca-Cola Company's interest coverage from March 31, 2020, to December 31, 2024, reflects a declining pattern overall.
Starting at a healthy level of 15.57 in March 2020, the interest coverage gradually decreased to as low as 6.86 in June 2021, indicating a potential strain on the company to cover its interest expenses from its operating income. However, there was a slight recovery in the ratio in the subsequent quarters.
Notably, The Coca-Cola Company experienced a significant improvement in its interest coverage during the first half of 2022, with the ratio peaking at 20.01 in June 2022 and remaining relatively strong at 20.70 in September 2022. This implies the company's enhanced ability to pay its interest charges comfortably.
Subsequently, the interest coverage ratio exhibited a downward trend from December 2022 to December 2024, declining to a range between 8.78 and 9.17. This downward trend suggests that the company's interest obligations may be becoming relatively more burdensome compared to its operating income during this period.
Overall, fluctuations in The Coca-Cola Company's interest coverage ratio over the years indicate varying levels of financial health and ability to service its debt. It is essential for the company to closely monitor and manage its interest coverage ratio to ensure financial stability and meet its debt obligations effectively.