Coca-Cola's Financial Statements and Financial Ratios Analyzed from 2014 to 2018

"Coca-Cola 2018 Financial Statements and Financial Ratios: Defined, Discussed, and Analyzed for 5 Years” was written by, Paul Borosky, MBA., doctoral candidate, and owner of Quality Business Plan.  In this summarized book, the author researched Coca-Cola's (Coke) 10k, Coca-Cola's 2017 10k annual report, Coca-Cola's 2016 10k annual report, Coca-Cola's 2015 10k annual report, and Coca-Cola's 2019 10k annual report as the basis for information gathering.  Once all Coca-Cola's 10k annual statements were collected, the author then inserted Coca-Cola's income statement information and Coca-Cola's balance sheet information into a customized financial template. 

Coca-Cola's Company Summary From 2014 to 2018

The Coca-Cola Company was start in 1886, as a beverage organization.  The firm’s specialty is non-alcoholic beverages. Coke does business in Europe, Middle East, Africa, Latin America, North America, and Asia.  Their headquarters is located at One Coca-Cola Plaza in Atlanta, Ga. They employ about 62,000 people.  Coke competes in the beverage – soft drink industry. As for competitors, Coke competes with Pepsi, Nestle, Dr. Pepper, and Kraft Heinz.

Coca Cola Income Statement 2018

Column1 2018 2017 2016 2015 2014
Revenues                    31,856                    35,410                    41,863                    44,294                      45,998
COGS                    11,770                    13,255                    16,465                    17,482                      17,889
Gross Profit                    20,086                    22,155                    25,398                    26,812                      28,109
SG&A                    10,307                    12,654                    15,370                    16,427                      17,218
Depreciation                            -                            -                            -                            -                             -
R & D                            -                            -                            -                            -                             -
Other                            -                            -                            -                            -                             -
Operating Expenses                      1,079                      1,902                      1,371                      1,657                        1,183
EBIT                      8,700                      7,599                      8,657                    10,998                      11,485
Other Income                         682                         677                         642                      8,728                        9,708
Interest Expense                         919                         841                         733                         613                           594
EBT                      7,781                      6,758                      7,924                    10,385                      10,891
Taxes                      1,623                      5,560                      1,586                      2,239                        2,201
Net Income                     6,476                     1,283                     6,550                     7,366                      7,124
Tax Rate 20.9% 82.3% 20.0% 21.6% 20.2%
Dividends                            -                            -                            -                            -                             -
Number of Shares                            -
Basic EPS                        7.93                        3.00                        5.63                        5.07                          5.58

Coca Cola Balance Sheet 2018

Column1 2018 2017 2016 2015 2014
Cash                      10,951                  15,358                  18,150                  15,631                  18,010
Short Term Investment                        5,013                    5,317                    4,051                    4,269                    3,665
Account Receivable                        3,396                    3,667                    3,856                    3,941                    4,466
Inventory                        2,766                    2,655                    2,675                    2,902                    3,100
Other                              -                         -                         -                         -                         -
Current Assets                    30,634                36,545                34,010                33,393                32,986
Net PPE                        8,232                    8,203                  10,635                  12,571                  14,633
Goodwill                      10,263                    9,401                  10,629                  11,289                  12,100
Other                              -                         -                         -                         -                         -
Total Assets                    83,216                87,896                87,270                89,996                92,023
Accounts Payable                        8,932                    8,748                    9,490                    9,660                    9,234
Accrued Expense                              -                         -                         -                         -                         -
Accrued Taxes                           378                       410                       307                       331                       400
Notes Payable                      13,194                  13,205                  12,498                  13,129                  19,130
LT Debt - Current                        4,997                    3,298                    3,527                    2,676                    3,552
Other                              -                         -                         -                         -                         -
Total Current Liabilities                      29,223                  27,194                  26,532                  26,929                  32,374
LT Debt                      25,364                  31,182                  29,684                  28,311                  19,063
Other                              -                         -                         -                         -                         -
Total Liabilities                    64,158                68,919                64,050                64,232                61,462
Common Stock                        1,760                    1,760                    1,760                    1,760                    1,760
Treasury                        2,772                    2,781                    7,040                    7,040                    7,040
Retained Earnings                      63,234                  60,430                  65,502                  65,018                  63,408
Other                              -                         -
Total Equity                    19,058                18,977                23,220                25,764                30,561
Total Equity & Liability                    83,216                87,896                87,270                89,996                92,023

Coca-Cola's Financial Ratio Summary From 2014 to 2018

Coca-Cola’s current ratio has stayed steady between 1.02 and 1.34.  This shows that the firm should remain financially solvent in the short term.  As for the company’s fixed asset turnover, this shows increased efficiency.  Specifically, their fixed asset turnover has increased from 3.14 to 3.87 over the course of five years.  In important aspect for investors is always the return on equity.  For Coca-Cola, the company has fluctuated between 6.76% to 33.98%.  A driving reason for the companies improved return on equity may be their usage of debt.  In 2014, the company had a debt ratio of approximately 20.7%.  As of 2018, this ratio grew to 30.4%.

Coca Cola Liquidity Ratios 2018

Ratios 2018 2017 2016 2015 2014
Current Ratio                           1.05                    1.34                    1.28                    1.24                    1.02
Cash Ratio                           0.37                    0.56                    0.68                    0.58                    0.56
Quick Ratio                           0.95                    1.25                    1.18                    1.13                    0.92
Net Working Capital                         7,803                12,522                14,884                12,483                15,942

Coca Cola Asset Utilization 2018

Ratios 2018 2017 2016 2015 2014
Total Asset Turnover                           0.38                    0.40                    0.48                    0.49                    0.50
Fixed Asset Turnover                           3.87                    4.32                    3.94                    3.52                    3.14
Days Sales Outstanding                         38.91                  37.80                  33.62                  32.48                  35.44
Inventory Turnover                         11.52                  13.34                  15.65                  15.26                  14.84
Accounts Receivable Turnover                           9.38                    9.66                  10.86                  11.24                  10.30
Working Capital Turnover                           4.08                    2.83                    2.81                    3.55                    2.89
AP Turnover                           3.57                    4.05                    4.41                    4.59                    4.98
Average Days Inventory                           0.03                    0.04                    0.04                    0.04                    0.04
Average Days Payable                           0.01                    0.01                    0.01                    0.01                    0.01

Coca Cola Profitability Ratios 2018

Ratios 2018 2017 2016 2015 2014
Return on Assets 7.78% 1.46% 7.51% 8.18% 7.74%
Return on Equity 33.98% 6.76% 28.21% 28.59% 23.31%
Net Profit Margin 20.33% 3.62% 15.65% 16.63% 15.49%
Gross Profit Margin 63.05% 62.57% 60.67% 60.53% 61.11%
Operating Profit Margin 27.31% 21.46% 20.68% 24.83% 24.97%
Basic Earning Power 10.45% 8.65% 9.92% 12.22% 12.48%
ROCE 16.11% 12.52% 14.25% 17.44% 19.25%
Capital Employed                       53,993                60,702                60,738                63,067                59,649
ROIC 42.94% 6.50% 27.13% 34.43% 29.97%

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