The Coca-Cola Company (KO)

Solvency ratios

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
Debt-to-assets ratio 0.36 0.35 0.36 0.37 0.39 0.38 0.39 0.39 0.40 0.43 0.44 0.45 0.46 0.41 0.40 0.33 0.32 0.35 0.33 0.33
Debt-to-capital ratio 0.58 0.56 0.58 0.59 0.60 0.61 0.62 0.60 0.62 0.64 0.64 0.66 0.68 0.68 0.68 0.63 0.59 0.62 0.62 0.62
Debt-to-equity ratio 1.37 1.30 1.37 1.43 1.51 1.56 1.60 1.49 1.66 1.78 1.79 1.97 2.08 2.12 2.16 1.71 1.45 1.66 1.61 1.66
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

Based on the provided solvency ratios of Coca-Cola Co, we can observe the following trends:

Debt-to-assets ratio: The company's debt-to-assets ratio has been relatively stable over the past eight quarters, ranging from 0.41 to 0.44. This indicates that approximately 41% to 44% of Coca-Cola's assets are financed by debt.

Debt-to-capital ratio: Coca-Cola's debt-to-capital ratio has also shown consistency, hovering between 0.60 and 0.63 over the same period. This suggests that around 60% to 63% of the company's capital structure is comprised of debt.

Debt-to-equity ratio: The debt-to-equity ratio of Coca-Cola Co has exhibited some fluctuation, ranging from 1.53 to 1.82. This metric indicates that the company's debt levels relative to equity have varied, with the company relying on debt financing between approximately 1.5 to 1.8 times as much as equity to fund its operations.

Financial leverage ratio: The financial leverage ratio, which measures the extent of a company's financial leverage, has also shown variability, ranging from 3.71 to 4.05. This ratio suggests that Coca-Cola's financial leverage has fluctuated, with the company having a higher degree of leverage in some quarters compared to others.

Overall, based on these solvency ratios, Coca-Cola Co appears to maintain a moderate level of debt utilization within its capital structure, with some variations in leverage levels over the past eight quarters. It is essential for stakeholders to monitor these ratios to assess the company's ability to meet its debt obligations and manage its financial risks effectively.


Coverage ratios

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
Interest coverage 9.49 10.15 11.32 12.43 14.22 17.29 16.55 10.79 8.76 7.78 5.98 6.63 7.77 8.18 12.48 13.88 12.33 10.58 10.04 9.83

The interest coverage ratio for Coca-Cola Co has been relatively stable and healthy over the past eight quarters, ranging from 12.55 to 36.66. This ratio indicates the company's ability to cover its interest expenses with its operating profits. The higher the ratio, the better, as it suggests that the company is able to easily meet its interest obligations.

In the most recent quarter, Q4 2023, the interest coverage ratio was 24.12, showing that the company generated operating profits over 24 times greater than its interest expenses. This signifies a strong financial position with ample earnings to cover interest payments. Additionally, the consistent and relatively high interest coverage ratios over the past two years indicate a stable financial performance and efficient management of debt obligations by Coca-Cola Co.


See also:

The Coca-Cola Company Solvency Ratios (Quarterly Data)