Coca-Cola's Financial Statements and Financial Ratios Analyzed from 2016 to 2020
Hey All,
Thanks for visiting my Coca Cola Financial Report page. On this page, you will be able to find preliminary information about Coca Cola current financial performance as well as some historical track records and trends.
For a more detailed examination of Coca Cola financial performance, please check out the "Financial Report". 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 important income statement, balance sheet, and financial ratio trends and other happenings.
- Five year’s worth of over twenty 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 provided in each section to help YOU conduct your OWN financial analysis!
- Each section includes an “in other words” segment. This is were I use plain English to explain concepts.
Enjoy the preliminary information and for a more detailed analysis, buy the financial report!
Sincerely,
Paul MBA.
PDF/Downloadable Version
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Sample Financial Report
Coca-Cola's Company Summary From 2016 to 2020
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 Financial Report Sources
"Coca-Cola 2020 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 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 Analyzed 2016 - 2020
In this section, I walk through a broad definition as to what an income statement is and why it is important. From this, I then discuss and define income statement line items, such as revenues, gross profits, etc. in detail. After each line item is defined and discussed, I finally offer a summary analysis of Coca Cola's important income statement line item trends for the last 5 years, in most cases.
Revenue Growth: In 2016, Coke had revenues of approximately $41.8 billion. In the next two years, the organization’s revenues would drop considerably, ending 2018 at $34.3 billion. Fortunately, in 2019, the organization’s revenues would grow by approximately 8% ending the year at $37.2 billion. However, the firm would suffer revenue losses again in 2020, ending the year at $33 billion. The fluctuation in revenue growth indicates that the firm is struggling to maintain its market share. From this, investors should not expect sustained growth from the organization. To mitigate this problem, the company may need to expand its product offerings.
Coca-Cola Summary Income Statement 2020 |
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| Column1 | 2020 | 2019 | 2018 | 2017 | 2016 |
| Revenues | 33,014 | 37,266 | 34,300 | 36,212 | 41,863 |
| COGS | 13,433 | 14,619 | 13,067 | 13,721 | 16,465 |
| Gross Profit | 19,581 | 22,647 | 21,233 | 22,491 | 25,398 |
| SG&A | 9,731 | 12,103 | 11,002 | 12,834 | 15,262 |
| Depreciation | 1,536 | 1,365 | 1,086 | 1,260 | 1,787 |
| R & D | |||||
| Other | 853 | 458 | 1,079 | 1,902 | 1,510 |
| Operating Expenses | 10,584 | 12,561 | 12,081 | 14,736 | 16,772 |
| EBIT | 11,186 | 11,732 | 9,175 | 7,743 | 8,869 |
| Other Income | |||||
| Interest Expense | 1,437 | 946 | 950 | 853 | 733 |
| EBT | 9,749 | 10,786 | 8,225 | 6,890 | 8,136 |
| Taxes | 1,981 | 1,801 | 1,749 | 5,607 | 1,586 |
| Net Income | 7,768 | 8,985 | 6,476 | 1,283 | 6,550 |
| Tax Rate | 20.3% | 16.7% | 21.3% | 81.4% | 19.5% |
Section 2: Coca Cola Balance Sheet Analyzed 2016 to 2020
For Coke's balance sheet, I again go through each important line item from the balance sheet. In reviewing each line item, I will define Coke's balance sheet line item, such as cash, property, plant and equipment, and liabilities for the last 5 years. Next, I then offer an analysis of Coke's balance sheet line item.
Cash: Coke ended 2016 with $8.5 billion in cash. In the next year, the company’s cash position would fall to $6 billion. However, in 2018, the firm’s cash position would moderately increase to $9 billion. In 2019, the organization’s cash position would again fall to $6.4 billion, only to slightly rebound in 2020 to $6.7 billion.
The fluctuation in cash indicates that the organization has no set policy for maintaining a consistent cash position. The lack of a consistent cash position shows that the firm may dedicate little thought to fully optimizing its current asset holdings—a lack of oversight in my most humble of opinions.
Coca-Cola Summary Balance Sheet 2020 |
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| Column1 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| Cash | 6,795 | 6,480 | 9,077 | 6,006 | 8,555 | |
| Short Term Investment | 4,119 | 4,695 | 7,038 | 14,669 | 13,646 | |
| Account Receivable | 3,144 | 3,971 | 3,685 | 3,667 | 3,856 | |
| Inventory | 3,266 | 3,379 | 3,071 | 2,655 | 2,675 | |
| Other | ||||||
| Current Assets | 19,240 | 20,411 | 24,930 | 36,545 | 34,010 | |
| Net PPE | 10,777 | 10,838 | 9,598 | 8,203 | 10,635 | |
| Goodwill | 17,506 | 16,764 | 14,109 | 9,401 | 10,629 | |
| Other | ||||||
| Total Assets | 87,296 | 86,381 | 83,216 | 87,896 | 87,270 | |
| Accounts Payable | 11,145 | 11,312 | 9,533 | 8,748 | 9,490 | |
| Accrued Expense | ||||||
| Accrued Taxes | 788 | 414 | 411 | 410 | 307 | |
| Notes Payable | 2,183 | 10,994 | 13,835 | 13,205 | 12,498 | |
| LT Debt - Current | 485 | 4,253 | 5,003 | 3,298 | 3,527 | |
| Other | ||||||
| Total Current Liabilities | 14,601 | 26,973 | 28,782 | 27,194 | 26,532 | |
| LT Debt | 40,125 | 27,516 | 25,376 | 31,182 | 29,684 | |
| Other | ||||||
| Total Liabilities | 66,012 | 44,185 | 45,100 | 49,942 | 40,830 | |
| Common Stock | 19,361 | 18,914 | 18,280 | 17,624 | 16,753 | |
| Treasury | 52,016 | 52,244 | 51,719 | 50,677 | 47,988 | |
| Retained Earnings | 66,555 | 65,855 | 63,234 | 60,430 | 14,993 | |
| Other | ||||||
| Total Equity | 21,284 | 21,098 | 19,058 | 18,977 | 23,220 | |
| Total Equity & Liability | 87,296 | 65,283 | 64,158 | 68,919 | 64,050 | |
Section 3: Coca-Cola's Financial Ratio Summary From 2016 to 2020
For this section, I have chosen about 10 different financial ratios to review for Coca-Cola for the last 5 years. In reviewing each of Coke's financial ratios, I first start with defining the financial ratio. Next, I supply the financial formula for calculating the specific ratio. Finally, I offer a brief analysis of Coke's important financial ratios. Important ratios calculated and analyzed for the last five years include:
Coca Cola Current Ratio
Current Ratio.
Coke’s current ratio ended 2016 at 1.28. In the next year, the organization’s current ratio would slightly increase to 1.34. From this point, the organization’s current ratio would continually fall over the next two years ending 2019 at .76. However, the firm would substantially increase its current ratio ending 2020 at 1.32. The fluctuation in the organization’s current ratio indicates that the company has no set target for its current ratio. Further, even a narrow range, or scope, is not evident. A better strategy would be for the organization to identify a target current ratio and take specific actions to ensure it is maintained year-over-year.
Coca Cola Liquidity Ratios 2020 |
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| Ratios |
2020 |
2019 | 2018 | 2017 |
2016 |
| Current Ratio |
1.32 |
0.76 |
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| Cash Ratio |
0.47 |
0.24 |
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| Quick Ratio |
1.09 |
0.63 |
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| Net Working Capital |
1,272 |
2,104 |
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Coca Cola Asset Utilization Ratios 2020 |
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| Ratios |
2020 |
2019 | 2018 | 2017 |
2016 |
| Total Asset Turnover |
0.38 |
0.43 |
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| Fixed Asset Turnover |
3.06 |
3.44 |
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| Days Sales Outstanding |
34.76 |
38.89 |
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| Inventory Turnover |
10.11 |
11.03 |
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| Accounts Receivable Turnover |
10.50 |
9.38 |
|||
| Working Capital Turnover |
25.95 |
17.71 |
|||
| AP Turnover |
2.96 |
3.29 |
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| Average Days Inventory |
0.03 |
0.03 |
|||
| Average Days Payable |
0.01 |
0.01 |
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Coca Cola Profitability Ratios 2020 |
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| Ratios |
2020 |
2019 | 2018 | 2017 |
2016 |
| Return on Assets |
8.90% |
10.40% |
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| Return on Equity |
36.50% |
42.59% |
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| Net Profit Margin |
23.53% |
24.11% |
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| Gross Profit Margin |
59.31% |
60.77% |
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| Operating Profit Margin |
33.88% |
31.48% |
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| Basic Earning Power |
12.81% |
13.58% |
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| ROCE |
15.39% |
19.75% |
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| Capital Employed |
72,695 |
59,408 |
|||
| ROIC |
73.97% |
75.51% |
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Coca Cola Long-term Debt 2020 |
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| Ratios |
2020 |
2019 | 2018 | 2017 |
2016 |
| Debt Ratio |
45.96% |
31.85% |
|||
| Debt/Equity |
188.52% |
130.42% |
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| Times Interest Earned |
7.78 |
12.40 |
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