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 |
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| 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 |
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| 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 |
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| 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 |
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| 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 |
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| 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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