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

Beginners Guide to Coca-Cola 2021 Financial Analysis by Paul Borosky, MBA.

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
Coca-Cola Financial Report by Paul Borosky, MBA.

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

Sample report 2
Financial Report Sample 1

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