Coca-Cola Financial Statement and Financial Ratios Analysis

Coca-Cola's Financial Statements and Financial Ratios Analyzed

Hey All,

Thanks for visiting my Coca-Cola Financial Report page. On this page, you will be able to find preliminary information about Coke's current financial performance as well as some historical track records and trends. 

For a more detailed examination of Coke's financial performance, I offer two reports, which are "A Beginner's Guide to Coke 2021 Financial Analysis" and "Coke Financial Report by Paul Borosky, MBA."  Both reports are written by myself, Paul Borosky, MBA., Doctoral Candidate and published author, and include:

  • Summarized income statements for the last 5 years.
  • Summarized balance sheets for the last 5 years.
  • Five years’ 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 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.

 

For a MORE in-depth review of the company's financial statements and ratios, make sure to buy my "Coke Financial Report".  The financial report includes all aspects of my "Beginner's Guide" plus a whole lot more...

  • Professional financial analysis of important income statements, balance sheets, and financial ratio trends.
  • "Letter Grade" is assigned to most financial statement line items and financial ratios to help you better understand their overall trends for the last 5 years.
  • Overall financial analysis summary for the company.

Enjoy the preliminary information and for a more detailed analysis, buy the financial report!

Sincerely,

Paul, MBA.

PDF/Downloadable Version

Beginners Guide to Coca-Cola 2021 Financial Analysis

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Coca-Cola Financial Report by Paul Borosky, MBA.

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Sample Financial Report

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

Coca-Cola's Company Summary

The Coca-Cola Company was started in 1886, as a beverage organization.  The firm’s specialty is non-alcoholic beverages.

Coke does business in Europe, the Middle East, Africa, Latin America, North America, and Asia.  Its 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 balance sheet information into a customized financial template. 

Section 1: Coca-Cola Income Statement

In this section, I walk through a broad definition of 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:

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

Coca-Cola 2021 Summary Income Statement

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

 

Section 2: Coca-Cola Balance Sheet Analyzed

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:  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 2021 Summary Balance Sheet

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

 

Section 3: Coca-Cola's Financial Ratio Summary

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.

Coca-Cola’s current ratio was .76 in 2019.  As of 2021, Coca-Cola’s current ratio would increase to 1.13.  The growth in the firm’s current ratio shows that the company has enough current assets to cover its current 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 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 of generating revenues with assets under management.  From an investor’s perspective, this is a good trend.

Analyst Grade: A

Coca-Cola 2021 Liquidity Ratios

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 2021 Asset Utilization

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 2021 Profitability Ratios

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 2021 Debt Ratios

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