Stock Analysis on Net
Stock Analysis on Net

Coca-Cola Co. (NYSE:KO)

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Coca-Cola Co., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Trademarks 14,349 14,214 14,465 10,395 9,266
Goodwill 18,358 18,782 19,363 17,506 16,764
Other 161 175 211 225 219
Indefinite-lived intangible assets 32,868 33,171 34,039 28,126 26,249
Customer relationships 309 354 336 195 344
Trademarks 70 147 189 245 177
Other 183 206 273 332 396
Definite-lived intangible assets, gross carrying value 562 707 798 772 917
Accumulated amortization (207) (247) (224) (348) (400)
Definite-lived intangible assets, net carrying value 355 460 574 424 517
Intangible assets 33,223 33,631 34,613 28,550 26,766

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Coca-Cola Co. goodwill decreased from 2021 to 2022 and from 2022 to 2023.
Intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Coca-Cola Co. intangible assets decreased from 2021 to 2022 and from 2022 to 2023.

Adjustments to Financial Statements: Removal of Goodwill

Coca-Cola Co., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 97,703 92,763 94,354 87,296 86,381
Less: Goodwill 18,358 18,782 19,363 17,506 16,764
Total assets (adjusted) 79,345 73,981 74,991 69,790 69,617
Adjustment to Equity Attributable To Shareowners Of The Coca-Cola Company
Equity attributable to shareowners of The Coca-Cola Company (as reported) 25,941 24,105 22,999 19,299 18,981
Less: Goodwill 18,358 18,782 19,363 17,506 16,764
Equity attributable to shareowners of The Coca-Cola Company (adjusted) 7,583 5,323 3,636 1,793 2,217
Adjustment to Net Income Attributable To Shareowners Of The Coca-Cola Company
Net income attributable to shareowners of The Coca-Cola Company (as reported) 10,714 9,542 9,771 7,747 8,920
Add: Goodwill impairments — — 7 14 —
Net income attributable to shareowners of The Coca-Cola Company (adjusted) 10,714 9,542 9,778 7,761 8,920

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Coca-Cola Co., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Coca-Cola Co., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net Profit Margin
Reported net profit margin 23.42% 22.19% 25.28% 23.47% 23.94%
Adjusted net profit margin 23.42% 22.19% 25.30% 23.51% 23.94%
Total Asset Turnover
Reported total asset turnover 0.47 0.46 0.41 0.38 0.43
Adjusted total asset turnover 0.58 0.58 0.52 0.47 0.54
Financial Leverage
Reported financial leverage 3.77 3.85 4.10 4.52 4.55
Adjusted financial leverage 10.46 13.90 20.62 38.92 31.40
Return on Equity (ROE)
Reported ROE 41.30% 39.59% 42.48% 40.14% 46.99%
Adjusted ROE 141.29% 179.26% 268.92% 432.85% 402.35%
Return on Assets (ROA)
Reported ROA 10.97% 10.29% 10.36% 8.87% 10.33%
Adjusted ROA 13.50% 12.90% 13.04% 11.12% 12.81%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Coca-Cola Co. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Coca-Cola Co. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Coca-Cola Co. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Coca-Cola Co. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Coca-Cola Co. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Coca-Cola Co., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to shareowners of The Coca-Cola Company 10,714 9,542 9,771 7,747 8,920
Net operating revenues 45,754 43,004 38,655 33,014 37,266
Profitability Ratio
Net profit margin1 23.42% 22.19% 25.28% 23.47% 23.94%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to shareowners of The Coca-Cola Company 10,714 9,542 9,778 7,761 8,920
Net operating revenues 45,754 43,004 38,655 33,014 37,266
Profitability Ratio
Adjusted net profit margin2 23.42% 22.19% 25.30% 23.51% 23.94%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Net profit margin = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Net operating revenues
= 100 × 10,714 ÷ 45,754 = 23.42%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to shareowners of The Coca-Cola Company ÷ Net operating revenues
= 100 × 10,714 ÷ 45,754 = 23.42%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Coca-Cola Co. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net operating revenues 45,754 43,004 38,655 33,014 37,266
Total assets 97,703 92,763 94,354 87,296 86,381
Activity Ratio
Total asset turnover1 0.47 0.46 0.41 0.38 0.43
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net operating revenues 45,754 43,004 38,655 33,014 37,266
Adjusted total assets 79,345 73,981 74,991 69,790 69,617
Activity Ratio
Adjusted total asset turnover2 0.58 0.58 0.52 0.47 0.54

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Total asset turnover = Net operating revenues ÷ Total assets
= 45,754 ÷ 97,703 = 0.47

2 Adjusted total asset turnover = Net operating revenues ÷ Adjusted total assets
= 45,754 ÷ 79,345 = 0.58

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Coca-Cola Co. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets 97,703 92,763 94,354 87,296 86,381
Equity attributable to shareowners of The Coca-Cola Company 25,941 24,105 22,999 19,299 18,981
Solvency Ratio
Financial leverage1 3.77 3.85 4.10 4.52 4.55
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 79,345 73,981 74,991 69,790 69,617
Adjusted equity attributable to shareowners of The Coca-Cola Company 7,583 5,323 3,636 1,793 2,217
Solvency Ratio
Adjusted financial leverage2 10.46 13.90 20.62 38.92 31.40

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Financial leverage = Total assets ÷ Equity attributable to shareowners of The Coca-Cola Company
= 97,703 ÷ 25,941 = 3.77

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted equity attributable to shareowners of The Coca-Cola Company
= 79,345 ÷ 7,583 = 10.46

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Coca-Cola Co. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to shareowners of The Coca-Cola Company 10,714 9,542 9,771 7,747 8,920
Equity attributable to shareowners of The Coca-Cola Company 25,941 24,105 22,999 19,299 18,981
Profitability Ratio
ROE1 41.30% 39.59% 42.48% 40.14% 46.99%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to shareowners of The Coca-Cola Company 10,714 9,542 9,778 7,761 8,920
Adjusted equity attributable to shareowners of The Coca-Cola Company 7,583 5,323 3,636 1,793 2,217
Profitability Ratio
Adjusted ROE2 141.29% 179.26% 268.92% 432.85% 402.35%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROE = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Equity attributable to shareowners of The Coca-Cola Company
= 100 × 10,714 ÷ 25,941 = 41.30%

2 Adjusted ROE = 100 × Adjusted net income attributable to shareowners of The Coca-Cola Company ÷ Adjusted equity attributable to shareowners of The Coca-Cola Company
= 100 × 10,714 ÷ 7,583 = 141.29%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Coca-Cola Co. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to shareowners of The Coca-Cola Company 10,714 9,542 9,771 7,747 8,920
Total assets 97,703 92,763 94,354 87,296 86,381
Profitability Ratio
ROA1 10.97% 10.29% 10.36% 8.87% 10.33%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to shareowners of The Coca-Cola Company 10,714 9,542 9,778 7,761 8,920
Adjusted total assets 79,345 73,981 74,991 69,790 69,617
Profitability Ratio
Adjusted ROA2 13.50% 12.90% 13.04% 11.12% 12.81%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROA = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Total assets
= 100 × 10,714 ÷ 97,703 = 10.97%

2 Adjusted ROA = 100 × Adjusted net income attributable to shareowners of The Coca-Cola Company ÷ Adjusted total assets
= 100 × 10,714 ÷ 79,345 = 13.50%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Coca-Cola Co. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.