Coca-Cola's Financial Statements and Financial Ratios Analyzed from 2015 to 2019

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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.

Coca Cola Financial Report 2019 by Paul Borosky, MBA.
  • Company Report comes with a 7-day Limited 100% MONEY BACK GUARANTEE.
  • Free Bonus Downloads: Coco-Cola's Annual Statements for the Last Five Years (10k reports)!

Sample Financial Report

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

Coca-Cola's Company Summary From 2015 to 2019

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 2019 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 2019 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. 

Section 1: Coca Cola Income Statement Analyzed 2015 - 2019

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 from 2015 to 2019, in most cases.

Revenue Growth:  In 2015, revenues were approximately $44.2 billion.  Over the next several years, Coke’s revenues would decline to 37.2 billion.  This is an average annual decline rate of about 4%.  This shows that the company is losing market share to competitors.  Also, the reduction in revenues may be indicative of society’s demand for sugary soft drinks.  Because of this, the organization needs to divest its holdings and possibly invest in other revenue sources that are more aligned with society’s needs.

Cost of Goods Sold:  Coke’s cost of goods, as compared to revenues, was 39.5% in 2015.  As of 2019, the cost of goods as a percentage of revenues fell to approximately 39.2%.  This shows that the company is doing an excellent job of aligning the cost of goods with prices.  To accomplish this feat, the company is either doing an excellent job with negotiating raw material prices with vendors.  Or, the company is passing on increased raw material costs to its customers.  Finally, the firm may very well be doing both.

Coca Cola Summary Income Statement 2019

Column1 2019 2018 2017 2016 2015
Revenues                    37,266                    34,300                    36,212                    41,863                      44,294
COGS                    14,619                    13,067                    13,721                    16,465                      17,482
Gross Profit                    22,647                    21,233                    22,491                    25,398                      26,812
SG&A                    12,103                    11,002                    12,834                    15,262                      16,427
Depreciation                      1,365                      1,086                      1,260                      1,787                        1,970
R & D
Other                         458                      1,079                      1,902                      1,510                        1,657
Operating Expenses                    12,561                    12,081                    14,736                    16,772                      18,084
EBIT                    11,732                      9,175                      7,743                      8,869                      10,461
Other Income
Interest Expense                         946                         950                         853                         733                           856
EBT                    10,786                      8,225                      6,890                      8,136                        9,605
Taxes                      1,801                      1,749                      5,607                      1,586                        2,239
Net Income                     8,985                     6,476                     1,283                     6,550                      7,366

Section 2: Coca Cola Balance Sheet Analyzed 2015 to 2019

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 between 2015 to 2019.  Next, I then offer an analysis of Coke's balance sheet line item.

Cash:  Coca-Cola ended 2015 with a cash position of about $7.3 billion.  In the next four years, the company would grow there cash position to approximately $9 billion.  However, in 2019, their cash position fell to $6.4 billion.  Quite frankly, the cash position seems to be all over the board.  As a percentage of sales, this position ranges from 16% to 26%.  As a percentage of total assets, the cash position ranges from 6.8% to 10.9%.  Based on this analysis, it’s difficult to determine how the executive team sets there cash position.  Without a clear understanding, investors will have difficulty in ascertaining whether the firm has clear working strategies to ensure short-term solvency.

Short-term Investments:  Coca-Cola ended 2015 with approximately $12.5 billion in short-term investments.  In the next several years, the short-term investment position would fall to $4.6 billion.  This indicates that the firm is using short-term investments towards operations or acquiring competitor businesses.

Coca Cola Summary Balance Sheet 2019

Column1 2019 2018 2017 2016 2015
Cash                        6,480                    9,077                    6,006                    8,555                    7,309
Short Term Investment                        4,695                    7,038                  14,669                  13,646                  12,591
Account Receivable                        3,971                    3,685                    3,667                    3,856                    3,941
Inventory                        3,379                    3,071                    2,655                    2,675                    2,902
Other
Current Assets                    20,411                24,930                36,545                34,010                33,395
Net PPE                      10,838                    9,598                    8,203                  10,635                  12,571
Goodwill                      16,764                  14,109                    9,401                  10,629                  11,289
Other
Total Assets                    86,381                83,216                87,896                87,270                89,996
Accounts Payable                      11,312                    9,533                    8,748                    9,490                    9,660
Accrued Expense
Accrued Taxes                           414                       411                       410                       307                       331
Notes Payable                      10,994                  13,835                  13,205                  12,498                  13,129
LT Debt - Current                        4,253                    5,003                    3,298                    3,527                    2,676
Other
Total Current Liabilities                      26,973                  28,782                  27,194                  26,532                  26,929
LT Debt                      27,516                  25,376                  31,182                  29,684                  28,311
Other
Total Liabilities                    44,185                45,100                49,942                40,830                38,468
Common Stock                      18,914                  18,280                  17,624                  16,753                  15,776
Treasury                      52,244                  51,719                  50,677                  47,988                  45,066
Retained Earnings                      65,855                  63,234                  60,430                  14,993                  14,016
Other
Total Equity                    21,098                19,058                18,977                23,220                25,764
Total Equity & Liability                    65,283                64,158                68,919                64,050                64,232

Section 3: Coca-Cola's Financial Ratio Summary From 2015 to 2019

For this section, I have chosen about 16 different financial ratios to review for Coca Cola from 2015 to 2019.  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

Coca-Cola’s current ratio as of 2015 was 1.24.  This shows that the firm had more than enough current assets to cover its liabilities over the next 12 months.  Further, in the next three years, the organization would increase its current ratio position to 1.34.  As of 2018, though, the company would then lower their current ratio to .87 and then even lower in 2019 to .76.  This shows that the firm could be having liquidity issues within the next several years.  To mitigate this problem, the organization may need to sell off some of its underperforming fixed assets and shore up its cash position.

Coca Cola Total Asset Turnover

Coca-Cola’s total asset turnover was .49 in 2015.  In the next several years, the total asset turnover would steadily decline to .43 and 2019.  This shows that the firm is continually utilizing their assets less optimally over an extended period of time.  To mitigate this issue, the firm needs to either divest and sell some fixed assets that are underperforming.  Or, the organization needs to take action and increase their sales, which will directly impact utilization rates for operational assets.

Coca Cola Return on Equity

The organization’s return on equity ended 2015 at 28.6%.  In the next three years, this ratio would fall to 6.8% in 2017.  However, through cost-cutting measures, the organization drastically improves the return on equity for 2018 and 2019.  This resulted in a return on equity of 42.6% in 2019.  This shows that the firm was able to substantially improve their reliance on debt for operations and growth as compared to equity.  By relying more on debt for operations and growth, the company is able to reduce its equity position.  With the reduced equity position, this inevitably leads to a higher return on equity.

Coca Cola Debt Ratio

Coca-Cola’s debt ratio in 2015 was 31.5%.  In the next two years, the debt ratio would climb to 35.5% in 2017.  For 2018, the organization would reduce its debt ratio to 30.5%.  As for 2019, the debt ratio would climb to 31.85%.  The fluctuations in the company’s debt ratio make understanding their strategy for capital budgeting difficult.  Is their optimal debt level 31%?  35%?  Pick a specific equity and debt mix and stick with it for the long term.

Coca Cola 2019 Liquidity Ratios

Ratios 2019 2018 2017 2016 2015
Current Ratio                           0.76                    0.87
Cash Ratio                           0.24                    0.32
Quick Ratio                           0.63                    0.76
Net Working Capital                         2,104                  5,889

Coca Cola 2019 Asset Utilization

Ratios 2019 2018 2017 2016 2015
Total Asset Turnover                           0.43                    0.41
Fixed Asset Turnover                           3.44                    3.57
Days Sales Outstanding                         38.89                  39.21
Inventory Turnover                         11.03                  11.17
Accounts Receivable Turnover                           9.38                    9.31
Working Capital Turnover                         17.71                    5.82
AP Turnover                           3.29                    3.60
Average Days Inventory                           0.03                    0.03
Average Days Payable                           0.01                    0.01

Coca Cola 2019 Profitability Ratios

Ratios 2019 2018 2017 2016 2015
Return on Assets 10.40% 7.78%
Return on Equity 42.59% 33.98%
Net Profit Margin 24.11% 18.88%
Gross Profit Margin 60.77% 61.90%
Operating Profit Margin 31.48% 26.75%
Basic Earning Power 13.58% 11.03%
ROCE 19.75% 16.86%
Capital Employed                       59,408                54,434
ROIC 75.51% 46.65%

Coca Cola 2019 Long-term Debt

Ratios 2019 2018 2017 2016 2015
Debt Ratio 31.85% 30.49%
Debt/Equity 130.42% 133.15%
Times Interest Earned                         12.40                    9.66