Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Coca-Cola Co., short-term (operating) activity ratios
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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Coca-Cola Co. inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Coca-Cola Co. receivables turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Coca-Cola Co. payables turnover ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Coca-Cola Co. working capital turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Coca-Cola Co. number of days of inventory outstanding deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Coca-Cola Co. number of days of receivables outstanding improved from 2021 to 2022 and from 2022 to 2023. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Coca-Cola Co. number of days of payables outstanding decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Coca-Cola Co. cash conversion cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Inventory Turnover
Coca-Cola Co., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of goods sold | 18,520) | 18,000) | 15,357) | 13,433) | 14,619) | |
| Inventories | 4,424) | 4,233) | 3,414) | 3,266) | 3,379) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 4.19 | 4.25 | 4.50 | 4.11 | 4.33 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Altria Group Inc. | 5.12 | 5.46 | 5.96 | 3.98 | 3.09 | |
| Mondelēz International Inc. | 6.16 | 5.97 | 6.45 | 6.10 | 6.10 | |
| PepsiCo Inc. | 7.85 | 7.77 | 8.53 | 7.62 | 9.03 | |
| Inventory Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 6.09 | 6.08 | 6.60 | 5.74 | 5.83 | |
| Inventory Turnover, Industry | ||||||
| Consumer Staples | 8.21 | 7.60 | 8.82 | 8.40 | 8.24 | |
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).
1 2023 Calculation
Inventory turnover = Cost of goods sold ÷ Inventories
= 18,520 ÷ 4,424 = 4.19
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Coca-Cola Co. inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Receivables Turnover
Coca-Cola Co., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating revenues | 45,754) | 43,004) | 38,655) | 33,014) | 37,266) | |
| Trade accounts receivable, less allowances | 3,410) | 3,487) | 3,512) | 3,144) | 3,971) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 13.42 | 12.33 | 11.01 | 10.50 | 9.38 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Altria Group Inc. | 344.83 | 522.83 | 553.47 | 190.90 | 165.20 | |
| Mondelēz International Inc. | 9.91 | 10.20 | 12.29 | 11.57 | 11.69 | |
| PepsiCo Inc. | 8.46 | 8.50 | 9.16 | 8.37 | 8.59 | |
| Receivables Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 11.03 | 11.08 | 11.86 | 11.17 | 10.98 | |
| Receivables Turnover, Industry | ||||||
| Consumer Staples | 35.38 | 34.89 | 38.54 | 37.27 | 34.73 | |
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).
1 2023 Calculation
Receivables turnover = Net operating revenues ÷ Trade accounts receivable, less allowances
= 45,754 ÷ 3,410 = 13.42
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Coca-Cola Co. receivables turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Payables Turnover
Coca-Cola Co., payables turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of goods sold | 18,520) | 18,000) | 15,357) | 13,433) | 14,619) | |
| Accounts payable | 5,590) | 5,307) | 4,602) | 3,517) | 3,804) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 3.31 | 3.39 | 3.34 | 3.82 | 3.84 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Altria Group Inc. | 10.68 | 11.67 | 15.86 | 20.57 | 21.80 | |
| Mondelēz International Inc. | 2.67 | 2.67 | 2.60 | 2.60 | 2.65 | |
| PepsiCo Inc. | 3.60 | 3.78 | 3.77 | 3.59 | 3.76 | |
| Payables Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 3.40 | 3.53 | 3.56 | 3.65 | 3.74 | |
| Payables Turnover, Industry | ||||||
| Consumer Staples | 7.10 | 6.51 | 6.79 | 6.85 | 6.89 | |
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).
1 2023 Calculation
Payables turnover = Cost of goods sold ÷ Accounts payable
= 18,520 ÷ 5,590 = 3.31
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Coca-Cola Co. payables turnover ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
Working Capital Turnover
Coca-Cola Co., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 26,732) | 22,591) | 22,545) | 19,240) | 20,411) | |
| Less: Current liabilities | 23,571) | 19,724) | 19,950) | 14,601) | 26,973) | |
| Working capital | 3,161) | 2,867) | 2,595) | 4,639) | (6,562) | |
| Net operating revenues | 45,754) | 43,004) | 38,655) | 33,014) | 37,266) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 14.47 | 15.00 | 14.90 | 7.12 | — | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Altria Group Inc. | — | — | — | — | — | |
| Mondelēz International Inc. | — | — | — | — | — | |
| PepsiCo Inc. | — | — | — | — | — | |
| Working Capital Turnover, Sector | ||||||
| Food, Beverage & Tobacco | — | — | — | — | — | |
| Working Capital Turnover, Industry | ||||||
| Consumer Staples | — | — | — | — | — | |
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).
1 2023 Calculation
Working capital turnover = Net operating revenues ÷ Working capital
= 45,754 ÷ 3,161 = 14.47
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Coca-Cola Co. working capital turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Average Inventory Processing Period
Coca-Cola Co., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 4.19 | 4.25 | 4.50 | 4.11 | 4.33 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 87 | 86 | 81 | 89 | 84 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Altria Group Inc. | 71 | 67 | 61 | 92 | 118 | |
| Mondelēz International Inc. | 59 | 61 | 57 | 60 | 60 | |
| PepsiCo Inc. | 46 | 47 | 43 | 48 | 40 | |
| Average Inventory Processing Period, Sector | ||||||
| Food, Beverage & Tobacco | 60 | 60 | 55 | 64 | 63 | |
| Average Inventory Processing Period, Industry | ||||||
| Consumer Staples | 44 | 48 | 41 | 43 | 44 | |
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).
1 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 4.19 = 87
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Coca-Cola Co. number of days of inventory outstanding deteriorated from 2021 to 2022 and from 2022 to 2023. |
Average Receivable Collection Period
Coca-Cola Co., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 13.42 | 12.33 | 11.01 | 10.50 | 9.38 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 27 | 30 | 33 | 35 | 39 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Altria Group Inc. | 1 | 1 | 1 | 2 | 2 | |
| Mondelēz International Inc. | 37 | 36 | 30 | 32 | 31 | |
| PepsiCo Inc. | 43 | 43 | 40 | 44 | 43 | |
| Average Receivable Collection Period, Sector | ||||||
| Food, Beverage & Tobacco | 33 | 33 | 31 | 33 | 33 | |
| Average Receivable Collection Period, Industry | ||||||
| Consumer Staples | 10 | 10 | 9 | 10 | 11 | |
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).
1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 13.42 = 27
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Coca-Cola Co. number of days of receivables outstanding improved from 2021 to 2022 and from 2022 to 2023. |
Operating Cycle
Coca-Cola Co., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 87 | 86 | 81 | 89 | 84 | |
| Average receivable collection period | 27 | 30 | 33 | 35 | 39 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 114 | 116 | 114 | 124 | 123 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Altria Group Inc. | 72 | 68 | 62 | 94 | 120 | |
| Mondelēz International Inc. | 96 | 97 | 87 | 92 | 91 | |
| PepsiCo Inc. | 89 | 90 | 83 | 92 | 83 | |
| Operating Cycle, Sector | ||||||
| Food, Beverage & Tobacco | 93 | 93 | 86 | 97 | 96 | |
| Operating Cycle, Industry | ||||||
| Consumer Staples | 54 | 58 | 50 | 53 | 55 | |
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).
1 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 87 + 27 = 114
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. |
Average Payables Payment Period
Coca-Cola Co., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 3.31 | 3.39 | 3.34 | 3.82 | 3.84 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 110 | 108 | 109 | 96 | 95 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Altria Group Inc. | 34 | 31 | 23 | 18 | 17 | |
| Mondelēz International Inc. | 136 | 137 | 141 | 140 | 138 | |
| PepsiCo Inc. | 101 | 97 | 97 | 102 | 97 | |
| Average Payables Payment Period, Sector | ||||||
| Food, Beverage & Tobacco | 107 | 103 | 102 | 100 | 97 | |
| Average Payables Payment Period, Industry | ||||||
| Consumer Staples | 51 | 56 | 54 | 53 | 53 | |
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).
1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.31 = 110
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Coca-Cola Co. number of days of payables outstanding decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
Cash Conversion Cycle
Coca-Cola Co., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 87 | 86 | 81 | 89 | 84 | |
| Average receivable collection period | 27 | 30 | 33 | 35 | 39 | |
| Average payables payment period | 110 | 108 | 109 | 96 | 95 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 4 | 8 | 5 | 28 | 28 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Altria Group Inc. | 38 | 37 | 39 | 76 | 103 | |
| Mondelēz International Inc. | -40 | -40 | -54 | -48 | -47 | |
| PepsiCo Inc. | -12 | -7 | -14 | -10 | -14 | |
| Cash Conversion Cycle, Sector | ||||||
| Food, Beverage & Tobacco | -14 | -10 | -16 | -3 | -1 | |
| Cash Conversion Cycle, Industry | ||||||
| Consumer Staples | 3 | 2 | -4 | 0 | 2 | |
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).
1 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 87 + 27 – 110 = 4
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Coca-Cola Co. cash conversion cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |