Coca-Cola Financial Analysis and Financial Ratios
Quality Business Consultant's financial analysis expert, Paul Borosky, MBA., doctoral candidate, and published author, has created proprietary financial models to help analyze Coca-Cola's financial performance using Coke's summarized income statements and balance sheets for the last five years, 2017 to 2021, found in their Annual Reports and Coke's 10ks.
Further, our financial model also calculates over 10 popular financial ratios, such as Coke's current ratio, return on equity, and debt ratio. This information is the basis of our financial report, "Coca-Cola Inc. Financial Report", where we offer insights into understanding Coke's financial standing through insightful financial analysis.
Coca-Cola Financial Reports and Financial Analysis
Price: $9.99
Coca-Cola 2021 Beginner's Guide
Table of Contents
- Disclaimer 3
- Forward 4
- Income Statement 6
- Coke’s Summarized Income Statements 6
- Revenues 7
- Cost of Goods Sold (COGS) 8
- Selling, General, and Administrative Expenses (SG&A 8
- Research and Development (R&D) 9
- Operating Expenses 10
- Earnings Before Interest and Taxes (EBIT 10
- Interest Expense 11
- Earnings Before Taxes (EBT) 12
- Taxes 12
- Net income 12
- Tax Rate 13
- Balance Sheet 15
- Coke’s Summarized Balance Sheets 15
- Cash 16
- Short-Term Investments 16
- Accounts Receivables 17
- Inventory 18
- Current Assets 19
- Property, Plant, and Equipment (PP&E) 20
- Total Assets 20
- Accounts Payable 21
- Accrued Expenses 22
- Short-Term Debt 23
- Total Current Liabilities 24
- Long Term Debt (LT Debt) 25
- Total Liabilities 26
- Common Stock and Additional Paid-in Capital 26
- Treasury 27
- Retained Earnings 28
- Total Equity 29
- Financial Ratios 30
- Coke’s Liquidity Ratios 31
- Current Ratio 31
- Quick Ratio 32
- Cash Ratio 33
- Coke’s Asset Ratios 35
- Total Asset Turnover 36
- Fixed Asset Turnover 37
- Days Sales Outstanding 37
- Inventory Turnover 38
- Accounts Receivable Turnover 39
- Accounts Payable Turnover 40
- Other Asset Ratio Calculations 41
- Working Capital Turnover 41
- Average Days in Inventory 41
- Average Days Payable 41
- Coke’s Profitability Ratios 43
- Return on Assets (ROA) 43
- Return on Equity (ROE) 44
- Net Profit Margin 45
- Gross Profit Margin 46
- Operating Profit Margin 46
- Coke’s Debt Ratios 48
- Debt Ratio 48
- Debt to Equity Ratio 49
- Times Interest Earned 50
Price: $14.99
Coca-Cola 2020 Financial Report
Table of Contents
- Disclaimer 3
- Forward 4
- Income Statement 6
- Coke’s Summarized Income Statements 6
- Revenues 7
- Cost of Goods Sold (COGS) 8
- Selling, General, and Administrative Expenses (SG&A 9
- Research and Development (R&D) 10
- Operating Expenses 11
- Earnings Before Interest and Taxes (EBIT 12
- Interest Expense 12
- Earnings Before Taxes (EBT) 13
- Taxes 14
- Net income 14
- Tax Rate 15
- Balance Sheet 16
- Coke’s Summarized Balance Sheets 16
- Cash 17
- Short-Term Investments 18
- Accounts Receivables 19
- Inventory 20
- Current Assets 21
- Property, Plant, and Equipment (PP&E) 22
- Total Assets 23
- Accounts Payable 24
- Accrued Expenses 25
- Short-Term Debt 26
- Total Current Liabilities 27
- Long Term Debt (LT Debt) 28
- Total Liabilities 29
- Common Stock and Additional Paid-in Capital 30
- Treasury 31
- Retained Earnings 31
- Total Equity 32
- Financial Ratios 34
- Coke’s Liquidity Ratios 35
- Current Ratio 35
- Quick Ratio 36
- Cash Ratio 37
- Coke’s Asset Ratios 39
- Total Asset Turnover 40
- Fixed Asset Turnover 41
- Days Sales Outstanding 42
- Inventory Turnover 43
- Accounts Receivable Turnover 44
- Accounts Payable Turnover 45
- Other Asset Ratio Calculations 46
- Working Capital Turnover 46
- Average Days in Inventory 46
- Average Days Payable 47
- Coke’s Profitability Ratios 48
- Return on Assets (ROA) 48
- Return on Equity (ROE) 50
- Net Profit Margin 51
- Gross Profit Margin 52
- Operating Profit Margin 53
- Coke’s Debt Ratios 55
- Debt Ratio 55
- Debt to Equity Ratio 56
- Times Interest Earned 57
- Summary 59
- Coke’s Strengths 59
- Coke’s Weaknesses 59
- Coke’s Final Grade 59
Coca-Cola Financial Reports and Guides by Paul Borosky, MBA.
Hey All,
Thanks for considering my Coca-Cola Inc. Financial Report. In this report, you will be able to find preliminary information about Costco's current financial performance, as well as some historical track records and trends. Also, in this report, written by myself, Paul Borosky, MBA., Doctoral Candidate and published author, you will find:
- Summarized income statement for the last 5 years.
- Summarized balance sheet for the last 5 years.
- Summary analysis by myself of the important income statement, balance sheet, and financial ratio trends and other happenings.
- Five years’ worth of over ten common financial ratios presented with formulas, calculations, and analysis tips for each ratio.
- Line by line description, explanation, and analysis tip for most financial statement line items and financial ratios.
- Professional financial analysis tips are provided in each section to help YOU conduct your OWN financial analysis!
- Each section includes an “in other words” segment. This is where I use plain English to explain concepts.
Sincerely,
Paul, MBA.
Sample Report
Coca-Cola Inc. Income Statement Analysis Sample
In this section of the financial report, I walk you through a broad definition of what an income statement is and why it is essential. From this, I then discuss and define important income statement line items, such as revenues, gross profits, etc., in detail. Finally, I offer a summary analysis of the company's important income statement line item trends. For example,...
Coke's Cost of Goods Sold.
Coke’s cost of goods ended 2016 at $16.4 billion. As compared to revenues, the cost of goods was 39.3%. In the next year, the organization’s cost of goods as compared to revenues would fall slightly, ending the year at 37.9%. This indicates that the company was able to either increase the sales price of their products or negotiate better raw material costs. An excellent trend for the company. Unfortunately, this trend was short-lived. In the next three years, the firm’s cost of goods as compared to revenues would continually climb, ending 2020 at 40.7%. As the cost of goods increases as compared to revenues, inevitably, without compensating factors such as operation cost reductions, the firm’s profit margin will shrink to nada, zip, zero, zilch.
Coca-Cola Summary Income Statement 2021 |
|||||
| Column1 |
2021 |
2020 | 2019 | 2018 |
2017 |
| Revenues |
38,655 |
33,014 | 37,266 | 34,300 |
36,212 |
| COGS |
15,357 |
13,433 | 14,619 | 13,067 |
13,721 |
| Gross Profit |
23,298 |
19,581 | 22,647 | 21,233 |
22,491 |
| SG&A |
12,144 |
9,731 | 12,103 | 11,002 |
12,834 |
| Depreciation |
1,452 |
1,536 | 1,365 | 1,086 |
1,260 |
| R & D | |||||
| Other |
846 |
853 | 458 | 1,079 |
1,902 |
| Total Operating Expenses |
14,442 |
12,120 | 13,926 | 13,167 |
15,996 |
| EBIT |
14,022 |
11,186 | 11,732 | 9,175 |
7,743 |
| Other Income | |||||
| Interest Expense |
1,597 |
1,437 | 946 | 950 |
853 |
| EBT |
12,425 |
9,749 | 10,786 | 8,225 |
6,890 |
| Taxes |
2,621 |
1,981 | 1,801 | 1,749 |
5,607 |
| Net Income |
9,804 |
7,768 | 8,985 | 6,476 |
1,283 |
Coca-Cola Inc. Balance Sheet Analysis Sample
In this section of the financial report, I walk you through a broad definition of what a balance sheet is and why it is essential. From this, I then discuss and define important balance sheet line items, such as cash, inventory, etc., in detail. Finally, I offer a summary analysis of the company's important balance sheet line item trends. For example,...
Coke's Property, Plant, and Equipment
Coke’s property, plant, and equipment ended 2016 at $10.6 billion. In the next year, the organization’s property, plant, and equipment would fall, ending the year at $8.2 billion. In the next three years, the organization’s property, plant, and equipment would continually grow, ending 2020 at $10.7 billion.
When an organization is increasing their property, plant, and equipment, from my experience, it’s for one of two reasons. First, the organization has significant current demand and is trying to meet this demand by adding more property, plants, and equipment. Or, an organization is expecting substantial growth in the near to long-term and is preparing for this growth through investing in property, plants, and equipment. For Coke, it’s my humble opinion that the company does not fall into either category. With this hypothesis as a foundation, the organization seems to be wasting substantial funds in modernizing or expanding operations with no plausible explanation.
Coca-Cola Summary Balance Sheet 2021 |
|||||
| Column1 |
2021 |
2020 | 2019 | 2018 |
2017 |
| Cash |
9,684 |
6,795 | 6,480 | 9,077 |
6,006 |
| Short Term Investment |
2,941 |
4,119 | 4,695 | 7,038 |
14,669 |
| Account Receivable |
3,512 |
3,144 | 3,971 | 3,685 |
3,667 |
| Inventory |
3,414 |
3,266 | 3,379 | 3,071 |
2,655 |
| Other | |||||
| Current Assets |
22,545 |
19,240 | 20,411 | 24,930 |
36,545 |
| Net PPE |
9,920 |
10,777 | 10,838 | 9,598 |
8,203 |
| Goodwill |
19,363 |
17,506 | 16,764 | 14,109 |
9,401 |
| Other | |||||
| Total Assets |
94,354 |
87,296 | 86,381 | 83,216 |
87,896 |
| Accounts Payable |
14,619 |
11,145 | 11,312 | 9,533 |
8,748 |
| Accrued Expense | |||||
| Accrued Taxes |
686 |
788 | 414 | 411 |
410 |
| Notes Payable |
3,307 |
2,183 | 10,994 | 13,835 |
13,205 |
| LT Debt - Current |
1,338 |
485 | 4,253 | 5,003 |
3,298 |
| Other | |||||
| Total Current Liabilities |
19,950 |
14,601 | 26,973 | 28,782 |
27,194 |
| LT Debt |
38,116 |
40,125 | 27,516 | 25,376 |
31,182 |
| Other | |||||
| Total Liabilities |
69,494 |
66,012 | 44,185 | 45,100 |
49,942 |
| Common Stock |
19,876 |
19,361 | 18,914 | 18,280 |
17,624 |
| Treasury |
51,641 |
52,016 | 52,244 | 51,719 |
50,677 |
| Retained Earnings |
69,094 |
66,555 | 65,855 | 63,234 |
60,430 |
| Other | |||||
| Total Equity |
24,860 |
21,284 | 21,098 | 19,058 |
18,977 |
| Total Equity & Liability |
94,354 |
87,296 | 65,283 | 64,158 |
68,919 |
Coca-Cola Inc. Financial Ratios Sample
In this section of the financial report, I walk you through definitions of various popular financial ratios, how to calculate the ratios, formulas used, etc. Also, for some popular financial ratios, I provide brief explanations of what the ratios mean as it is related to the company.
Coke's Fixed Asset Turnover Ratio
The organization’s fixed asset turnover ended 2016 at 3.94. In the next year, the organization’s fixed asset turnover would improve, ending 2017 at 4.4. However, in the next three years, the organization’s utilization of fixed assets would continually decline, ending 2020 at 3.06.
Again, this trend indicates that the organization is underutilizing fixed assets. By selling off some of the fixed assets, the firm may be able to not only improve its fixed asset turnover but also become more efficient in operations as a whole.
Coca-Cola Liquidity Ratios 2021 |
|||||
| Ratios | 2021 | 2020 | 2019 | 2018 | 2017 |
| Current Ratio | 1.13 | 1.32 | |||
| Cash Ratio | 0.63 | 0.75 | |||
| Quick Ratio | 0.96 | 1.09 | |||
| Net Working Capital | 2,595 | 4,639 | |||
Coca-Cola Asset Utilization 2021 |
|||||
| Ratios | 2021 | 2020 | 2019 | 2018 | 2017 |
| Total Asset Turnover | 0.41 | 0.38 | |||
| Fixed Asset Turnover | 3.90 | 3.06 | |||
| Days Sales Outstanding | 31.42 | 39.33 | |||
| Inventory Turnover (Using Sales) | 11.57 | 9.94 | |||
| Inventory Turnover (Using COGS) | 4.60 | 4.04 | |||
| Accounts Receivable Turnover | 11.62 | 9.28 | |||
| Working Capital Turnover | 14.90 | 7.12 | |||
| AP Turnover | 1.20 | 1.19 | |||
| Average Days Inventory | 79.38 | 90.28 | |||
| Average Days Payable | 303.25 | 307.69 | |||
Coca-Cola Profitability Ratios 2021 |
|||||
| Ratios | 2021 | 2020 | 2019 | 2018 | 2017 |
| Return on Assets | 10.39% | 8.90% | |||
| Return on Equity | 39.44% | 36.50% | |||
| Net Profit Margin | 25.36% | 23.53% | |||
| Gross Profit Margin | 60.27% | 59.31% | |||
| Operating Profit Margin | 36.27% | 33.88% | |||
| Basic Earning Power | 14.86% | 12.81% | |||
| ROCE | 18.85% | 15.39% | |||
| Capital Employed | 74,404 | 72,695 | |||
| ROIC | 16.36% | 13.91% | |||
Coca-Cola Debt Ratios 2021 |
|||||
| Ratios | 2021 | 2020 | 2019 | 2018 | 2017 |
| Debt Ratio | 45.32% | 49.02% | |||
| Debt/Equity | 172.01% | 201.06% | |||
| Times Interest Earned | 8.78 | 7.78 | |||