Coca-Cola Financial Statement and Financial Ratios Analysis

Coca-Cola's Financial Statements and Financial Ratios Analyzed

Hey All,

Welcome to my Coca-Cola Financial Report page! Here, you'll find initial insights into Coca-Cola's current financial performance, historical records and trends.

I offer two reports for a comprehensive examination of Coca-Cola's financial performance: "A Beginner's Guide to Coke 2022 Financial Analysis" and "Coke Financial Report by Paul Borosky, MBA." These reports, authored by myself, Paul Borosky, MBA, Doctoral Candidate, and published author, provide valuable information, including:

  • Summarized income statements for the past five years
  • Summarized balance sheets for the past five years
  • Detailed analysis of over twenty common financial ratios, complete with formulas, calculations, and tips
  • Line-by-line explanations and analysis tips for key financial statement line items and ratios
  • Professional financial analysis tips to empower you to conduct your own analysis
  • "In other words," segments that simplify complex concepts in plain English.

For a deeper dive into Coca-Cola's financial statements and ratios, consider purchasing my "Coke Financial Report." This comprehensive report includes everything from the Beginner's Guide, along with additional insights:

  • Professional financial analysis of vital income statements, balance sheets, and financial ratio trends
  • "Letter Grade" assignments for most financial line items and ratios, enhancing understanding of their trends over the past five years.
  • Overall financial analysis summary for the company.

Enjoy the preliminary information, and for a more detailed analysis, I invite you to acquire the complete financial report!


Paul, MBA.

PDF/Downloadable Version

Coca-Cola 2022 A Beginner's Guide to Financial Analysis by Paul Borosky, MBA.

Click Below for the CURRENT

Downloadable PDF Price!!

Coca-Cola Financial Report by Paul Borosky, MBA.

Click Below for the CURRENT

Downloadable PDF Price!!

Sample Financial Report

Sample Financial Report by Paul Borosky, MBA.
Financial Report Sample 2

Coca-Cola's Company Summary

The Coca-Cola Company is a renowned multinational beverage corporation headquartered in Atlanta, Georgia. Founded in 1886, it is one of the world's most recognized and valuable brands. Coca-Cola offers a diverse range of non-alcoholic beverages, including carbonated soft drinks, juices, energy drinks, and bottled water, catering to a global consumer base.

The company's flagship product, Coca-Cola, has achieved immense popularity and has become synonymous with the brand itself. Coca-Cola operates in over 200 countries, with a strong distribution network ensuring its products are available worldwide. It has a vast portfolio of brands, including Sprite, Fanta, Dasani, Minute Maid, and Powerade, catering to various tastes and preferences.

The Coca-Cola Company's success is attributed to its robust marketing strategies, extensive product range, and focus on innovation. Sustainability and environmental responsibility are integral to the company's operations, as it strives to minimize its environmental footprint and promote water conservation and recycling initiatives.

From a financial perspective, Coca-Cola's market capitalization is about $264.66 billion.  Their beta is .55.  This indicates that the company's stock is less risky than the overall market.  Their stock price range for the last 52 weeks has been between $54.02 to $65.47.  In the last year, their dividend payout has increased slightly.  At present, the dividend yield is 2.97%.

Coca-Cola Financial Report Sources

"Coca-Cola 2021 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 report, the author researched Coca-Cola's (Coke) 10k, Coca-Cola's 2020 10k annual report, Coca-Cola's 2016 10k annual report, Coca-Cola's 2019 10k annual report, and Coca-Cola's 2019 10k annual report as the basis for information gathering.  Once all of 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. 

Section 1: Coca-Cola Income Statement

This section provides a comprehensive overview of the income statement, emphasizing its significance in financial analysis. It begins with a broad definition and explanation of the income statement, highlighting its importance in assessing a company's financial performance. Subsequently, each line item, including revenues, gross profits, and more, is thoroughly defined and discussed in detail. By examining Coca-Cola's income statement, I present a summary analysis of the company's crucial income statement line item trends over the past five years, offering valuable insights into its financial performance. This analysis enables readers to understand better Coca-Cola's revenue generation, profitability, and key cost components, facilitating informed decision-making and comprehensive financial analysis.

Importance of Coca-Cola Income Statement for Financial Analysis:

The importance of the Coca-Cola income statement in financial analysis cannot be overstated. This statement offers a comprehensive overview of the company's financial performance by providing crucial information about revenues, expenses, and profitability. Analysts can evaluate Coca-Cola's ability to generate revenue, control costs, and ultimately achieve profitability by examining the income statement.

The income statement enables financial professionals to identify trends and patterns in Coca-Cola's revenue streams and expense categories, helping them understand the company's operational efficiency and effectiveness. It also facilitates comparisons with industry peers, allowing for a comprehensive assessment of Coca-Cola's competitive position.

Moreover, the income statement is a foundation for calculating various financial ratios that gauge profitability, such as gross and net profit margins. These ratios offer insights into Coca-Cola's ability to profit from its core operations. Furthermore, the income statement is pivotal in forecasting and budgeting, providing essential information for future financial planning and decision-making.

Revenue Growth:

Coca-Cola’s revenues were $33 billion in 2020.  As of 2021, their revenues were $38.6 billion.  This is a growth rate of 17.1% over the last year.  However, the organization’s growth rate, on average, for the last five years was only 2.3%.  The contrast is due to moderate revenue peaks and valleys.  This trend should be concerning to investors.

Analyst Grade: B

Coke's 2022 Summary Income Statements

Column1 2022 2021 2020 2019 2018
Revenues                    43,004                    38,655                    33,014                    37,266                      34,300
COGS                    18,000                    15,357                    13,433                    14,619                      13,067
Gross Profit                    25,004                    23,298                    19,581                    22,647                      21,233
SG&A                    12,880                    12,144                      9,731                    12,103                      11,002
Depreciation                      1,260                      1,452                      1,536                      1,365                        1,086
R & D
Other                      1,215                         846                         853                         458                        1,079
Total Operating Expenses                    15,355                    14,442                    12,120                    13,926                      13,167
EBIT                    10,909                    14,022                    11,186                    11,732                        9,175
Other Income
Interest Expense                         882                      1,597                      1,437                         946                           950
EBT                    11,686                    12,425                      9,749                    10,786                        8,225
Taxes                      2,115                      2,621                      1,981                      1,801                        1,749
Net Income                     9,571                     9,804                     7,768                     8,985                      6,476


Section 2: Coca-Cola Balance Sheet Analyzed

A thorough analysis of the company's balance sheet is conducted in the second section of the Coca-Cola financial report. Each significant line item from the balance sheet, such as cash, property, plant and equipment, and liabilities, is carefully reviewed and defined. The analysis spans a period of five years, providing insights into the trends and changes in these balance sheet items over time. Analysts can assess the company's financial stability, asset management, and debt obligations by examining Coke's balance sheet. This analysis helps understand the company's financial health, evaluate its ability to meet its short-term and long-term obligations and identify areas of strength or concern.

Importance of Coca-Cola's Balance Sheet for Financial Analysis

The Coca-Cola balance sheet is important in financial analysis as it provides a snapshot of the company's financial position at a given time. This statement presents a detailed overview of Coca-Cola's assets, liabilities, and shareholders' equity, allowing analysts to assess its financial strength, liquidity, and solvency. By examining the balance sheet, financial professionals can evaluate Coca-Cola's asset management and utilization, including the composition of its asset base, such as cash, inventory, and property. They can also analyze the company's liabilities, including short-term and long-term debts, and assess its ability to meet financial obligations.

The balance sheet helps identify trends and changes in Coca-Cola's financial position, highlighting growth areas or potential risks. It enables comparisons with industry peers and benchmarking against industry standards. Furthermore, the balance sheet is a foundation for calculating important financial ratios, such as the debt-to-equity ratio, current ratio, and return on assets, providing insights into Coca-Cola's financial performance and efficiency.

The Coca-Cola balance sheet is crucial for financial analysis as it offers valuable information for assessing the company's financial health, making informed decisions, and evaluating its long-term sustainability and growth potential.

Sample- Cash:  Coca-Cola’s cash position in 2019 was $6.4 billion.  In the next two years, Coca-Cola increased its cash position to $9.6 billion in 2021.  As compared to sales, Coca-Cola’s cash was 17.4% in 2019 and 25.1% in 2021.  This trend shows that the firm is holding more cash in relation to sales.  This trend indicates that the company is financially solvent for the short term.  From an investor’s perspective, the overall trend is average.  To improve the trend, let’s see some consistency!

Analyst Grade: B

Coca-Cola's 2022 Summary Balance Sheets

Column1 2022 2021 2020 2019 2018
Cash                        9,519                    9,684                    6,795                    6,480                    9,077
Short Term Investment                        2,112                    2,941                    4,119                    4,695                    7,038
Account Receivable                        3,487                    3,512                    3,144                    3,971                    3,685
Inventory                        4,233                    3,414                    3,266                    3,379                    3,071
Current Assets                    22,591                22,545                19,240                20,411                24,930
Net PPE                        9,841                    9,920                  10,777                  10,838                    9,598
Goodwill                      18,782                  19,363                  17,506                  16,764                  14,109
Total Assets                    92,763                94,354                87,296                86,381                83,216
Accounts Payable                      15,749                  14,619                  11,145                  11,312                    9,533
Accrued Expense
Accrued Taxes                        1,203                       686                       788                       414                       411
Notes Payable                        2,373                    3,307                    2,183                  10,994                  13,835
LT Debt - Current                           399                    1,338                       485                    4,253                    5,003
Total Current Liabilities                      19,724                  19,950                  14,601                  26,973                  28,782
LT Debt                      36,377                  38,116                  40,125                  27,516                  25,376
Total Liabilities                    66,937                69,494                66,012                44,185                45,100
Common Stock                      20,582                  19,876                  19,361                  18,914                  18,280
Treasury                      52,601                  51,641                  52,016                  52,244                  51,719
Retained Earnings                      71,019                  69,094                  66,555                  65,855                  63,234
Total Equity                    25,826                24,860                21,284                21,098                19,058
Total Equity & Liability                    92,763                94,354                87,296                65,283                64,158

Section 3: Coca-Cola's Financial Ratio Summary

A comprehensive analysis of key financial ratios is conducted in the third section of the Coca-Cola financial report. Around 10 important financial ratios for Coca-Cola have been reviewed over the last five years. Each ratio is defined, and its corresponding formula for calculation is provided. This analysis enables a deep understanding of Coca-Cola's financial performance and efficiency. Important ratios, such as liquidity, profitability, and solvency, are analyzed to assess the company's liquidity position, profitability, and ability to meet financial obligations. By examining these ratios over a five-year period, analysts can identify trends, strengths, and areas of improvement within Coca-Cola's financial performance, aiding in strategic decision-making and financial planning.

Importance of Coca-Cola's Financial Ratios for Financial Analysis

Financial ratios are essential tools for conducting a comprehensive financial analysis of Coca-Cola. These ratios provide valuable insights into the company's financial performance, allowing analysts to assess its profitability, liquidity, solvency, efficiency, and overall financial health.

By examining Coca-Cola's financial ratios, analysts can evaluate the company's profitability through metrics such as return on assets (ROA) and equity (ROE). Liquidity ratios, such as the current and quick ratios, assess Coca-Cola's ability to meet short-term obligations and manage its cash flow effectively.

Solvency ratios, including the debt-to-equity and interest coverage ratios, provide insights into Coca-Cola's long-term financial stability and capacity to fulfill its debt obligations. Efficiency ratios, such as asset and inventory turnover, gauge how efficiently the company utilizes and manages its assets.

Analyzing these financial ratios over time and comparing them to industry benchmarks and competitors helps identify trends, strengths, weaknesses, and potential areas for improvement within Coca-Cola's financial performance. This information is crucial for making informed decisions, developing effective strategies, and evaluating the company's financial position in the market. Financial ratios serve as valuable tools to assess the overall financial performance and sustainability of Coca-Cola.

Coca-Cola Current Ratio

Current Ratio.

Coca-Cola’s current ratio was .76 in 2019.  As of 2021, Coca-Cola’s current ratio will increase to 1.13.  The growth in the firm’s current ratio shows that the company has enough assets to cover its liabilities in the short term.  However, because the organization does generate cash daily, the company may be able to better optimize its current ratio by reducing it to about a range of .7 to .9.

Analyst Grade: B

Coca-Cola's Return on Assets

Return on Assets (ROA)

Coca-Cola’s return on assets (ROA) was 1.46% in 2017.  Over the next four years, the organization would improve its return on assets ending 2021 at 10.39%.  The substantial growth in return on assets shows that the firm is continually doing a better job generating revenues with assets under management.  From an investor’s perspective, this is a good trend.

Analyst Grade: A

Coca-Cola 2021 Liquidity Ratios



2020 2019 2018


Current Ratio



Cash Ratio



Quick Ratio



Net Working Capital



Coca-Cola 2021 Asset Utilization



2020 2019 2018


Total Asset Turnover



Fixed Asset Turnover



Days Sales Outstanding



Inventory Turnover (Using Sales)



Inventory Turnover (Using COGS)



Accounts Receivable Turnover



Working Capital Turnover



AP Turnover



Average Days Inventory



Average Days Payable



Coca-Cola 2021 Profitability Ratios



2020 2019 2018


Return on Assets



Return on Equity



Net Profit Margin



Gross Profit Margin



Operating Profit Margin



Basic Earning Power






Capital Employed






Coca-Cola 2021 Debt Ratios



2020 2019 2018


Debt Ratio






Times Interest Earned