Coca-Cola Co. (NYSE:KO)

Total Assets

The reported total assets showed an upward trend overall, increasing from 87,296 million USD in 2020 to 100,549 million USD in 2024. Despite a slight decrease in 2022, the asset base expanded consistently in subsequent years.

The adjusted total assets, which exclude goodwill, follow a similar pattern but at lower values. They grew from 69,790 million USD in 2020 to 82,410 million USD in 2024, with a minor decline observed in 2022 and a recovery thereafter. The gap between reported and adjusted assets indicates a significant portion of total assets is attributed to goodwill.

Equity Attributable to Shareowners

Reported equity increased steadily from 19,299 million USD in 2020 to a peak of 25,941 million USD in 2023, followed by a slight decrease to 24,856 million USD in 2024. This indicates overall growth in shareholder value, albeit with a marginal retreat in the last reported year.

Adjusted equity, excluding goodwill, started at a relatively low base of 1,793 million USD in 2020, rising sharply to 7,583 million USD in 2023, before dropping to 6,717 million USD in 2024. The trend mirrors that of reported equity but highlights the significant impact of goodwill on equity figures, with adjusted equity growing at a faster relative rate until 2023.

Net Income Attributable to Shareowners

Reported net income displayed a generally positive trajectory from 7,747 million USD in 2020 to 10,631 million USD in 2024, peaking at 10,714 million USD in 2023. This reflects sustained profitability and incremental growth over the five-year period.

The adjusted net income closely parallels the reported net income, confirming that goodwill adjustments have minimal impact on profitability measures. The slight variations between reported and adjusted figures are negligible across the years.

The data reveals several notable trends in profitability, asset efficiency, leverage, and returns over the five-year period from 2020 to 2024.

Net Profit Margin

The reported net profit margin exhibits a fluctuating pattern, starting at 23.47% in 2020, increasing to a peak of 25.28% in 2021, then declining to 22.19% in 2022, followed by a modest recovery to 23.42% in 2023, and slightly decreasing again to 22.59% in 2024. The adjusted net profit margin closely mirrors this trend, with minimal differences indicating that goodwill adjustments have a negligible impact on profitability margins.

Total Asset Turnover

The reported total asset turnover demonstrates a steady upward trajectory from 0.38 in 2020 to 0.47 in 2023, maintaining that level into 2024. The adjusted total asset turnover, accounting for goodwill, shows consistently higher ratios, starting at 0.47 in 2020 and rising to 0.58 by 2022 and 2023 before slightly decreasing to 0.57 in 2024. This indicates improving asset use efficiency over time, particularly when adjusted for goodwill.

Financial Leverage

The reported financial leverage ratio declines from 4.52 in 2020 to a low of 3.77 in 2023, followed by an increase to 4.05 in 2024, suggesting a moderate reduction in reliance on debt or equity financing until 2023, then a partial reversal. In contrast, the adjusted financial leverage ratio shows a sharp decline from an extremely high 38.92 in 2020 to 12.27 in 2024. This steep decrease likely reflects the significant effect of goodwill adjustment on the equity base, indicating reduced leverage risk when adjustments are considered.

Return on Equity (ROE)

The reported ROE remains relatively stable, fluctuating between 39.59% and 42.77%, with a slight increasing tendency towards the end of the period. The adjusted ROE, however, presents substantially higher values initially (432.85% in 2020), followed by a rapid decline to 158.36% in 2024. This reduction reflects the impact of goodwill adjustment on equity, resulting in a more conservative and realistic measure of shareholder returns over time.

Return on Assets (ROA)

The reported ROA improves from 8.87% in 2020 to a peak of 10.97% in 2023 before slightly decreasing to 10.57% in 2024. Adjusted ROA follows a similar pattern but at consistently higher levels, rising from 11.12% in 2020 to 13.5% in 2023, then declining marginally to 12.91% in 2024. This indicates improved operational efficiency and profitability on asset investments when goodwill is taken into account.

Overall, the analysis highlights that while reported metrics show moderate improvements and some fluctuations, adjusted figures reveal substantial changes primarily driven by goodwill adjustments. Asset efficiency and returns improve consistently, and leverage risk appears to diminish notably once goodwill is accounted for, suggesting a more favorable financial position than indicated by reported data alone.

Net Income Trends

The reported net income attributable to shareowners exhibited overall growth from 2020 through 2023, increasing from 7,747 million USD to a peak of 10,714 million USD. However, a slight decline is observed in 2024 with net income decreasing marginally to 10,631 million USD. The adjusted net income metrics follow a nearly identical pattern, validating the consistency of profitability adjustments made for goodwill or other non-recurring items.

Net Profit Margin Analysis

The reported net profit margin demonstrated some fluctuations over the period. Starting at 23.47% in 2020, it rose to its highest point in 2021 at 25.28%, before declining to about 22.19% in 2022. Subsequently, there was a recovery to 23.42% in 2023, followed by a slight decrease to 22.59% in 2024. The adjusted net profit margin closely mirrors the reported margin, indicating that the adjustments have minimal impact on the underlying profitability ratios.

General Observations

The data suggest a positive earnings trajectory through 2023 with modest correction in 2024. Despite the slight dip in net profit margin toward the end of the period, the company's profitability remained relatively stable and strong overall. The close alignment between reported and adjusted figures indicates that non-recurring items or goodwill adjustments do not substantially influence the profit metrics reported for these years.

The analysis of the financial data reveals several important trends regarding the reported and goodwill adjusted figures for assets and asset turnover ratios over the five-year period from 2020 to 2024.

Total Assets

Reported total assets consistently increased each year, rising from US$ 87,296 million in 2020 to US$ 100,549 million in 2024. This represents a steady upward trend with an overall growth of approximately 15% over the period.

The adjusted total assets, which exclude goodwill, also showed an increasing pattern but at a slightly slower pace. Starting at US$ 69,790 million in 2020, adjusted assets grew to US$ 82,410 million by 2024, an increase of about 18%. Despite the year-to-year fluctuations, the rise in adjusted assets indicates an expanding asset base after goodwill adjustments.

Total Asset Turnover Ratios

Reported total asset turnover improved steadily from 0.38 in 2020 to 0.47 by 2023, remaining stable at 0.47 into 2024. This indicates enhanced efficiency in using reported assets to generate revenue, with an increase of about 24% over the five years.

The adjusted total asset turnover ratio exhibited a similar improvement trend but started at a higher base of 0.47 in 2020 and peaked at 0.58 in 2022 and 2023 before settling slightly lower at 0.57 in 2024. This suggests that, excluding goodwill, the company has become more efficient in asset utilization, achieving approximately a 21% improvement compared to 2020.

Overall, the data indicates that the asset base of the company has expanded steadily, both on a reported and adjusted basis. Concurrently, asset turnover ratios have improved, reflecting better asset management and revenue generation efficiency, with marginal stabilization noted in the final year. The adjusted figures highlight a consistently higher turnover ratio, which may imply that excluding goodwill provides a clearer measure of operational efficiency.

The financial data reveals several notable trends over the five-year period under review.

Asset Growth

Reported total assets increased steadily from $87,296 million in 2020 to $100,549 million in 2024, representing a moderate upward trend. Adjusted total assets, which exclude goodwill, also exhibited growth but at a slightly slower pace, rising from $69,790 million to $82,410 million over the same period.

Equity Trends

Reported equity attributable to shareowners demonstrated consistent growth from $19,299 million in 2020 to a peak of $25,941 million in 2023, with a slight decline to $24,856 million in 2024. In contrast, adjusted equity, excluding goodwill, showed a more volatile and significant percentage increase, rising from a relatively low base of $1,793 million in 2020 to $7,583 million in 2023, before decreasing to $6,717 million in 2024. This indicates that a considerable portion of equity changes relates to adjustments for goodwill.

Financial Leverage Analysis

Reported financial leverage declined steadily from 4.52 in 2020 to a low of 3.77 in 2023, before increasing to 4.05 in 2024. The adjusted financial leverage, however, started at an exceptionally high level of 38.92 in 2020 and decreased dramatically through the period, reaching 10.46 in 2023, with a slight increase to 12.27 in 2024. This sharp reduction suggests significant changes in capital structure or reductions in intangible assets impacting the leverage ratio when goodwill is excluded.

Overall, the company shows growth in total assets and reported equity, with financial leverage remaining relatively stable after an initial decline. The adjustments for goodwill significantly affect the equity and leverage metrics, indicating that goodwill plays a substantial role in the company’s reported financial structure. The decreases in adjusted financial leverage over time may reflect improved balance sheet health when goodwill is excluded, although the modest uptick in 2024 warrants further observation.

Net Income Trends

The reported net income attributable to shareowners increased steadily from 7,747 million US dollars in 2020 to a peak of 10,714 million in 2023, followed by a slight decline to 10,631 million in 2024. The adjusted net income mirrored this pattern closely, with values remaining nearly identical throughout the period, indicating that goodwill adjustments had minimal impact on net income figures.

Equity Trends

The reported equity attributable to shareowners showed a consistent upward trajectory from 19,299 million US dollars in 2020 to 25,941 million in 2023, then experienced a reduction to 24,856 million in 2024. Conversely, adjusted equity started significantly lower at 1,793 million in 2020 and increased steadily to 7,583 million in 2023 before slightly decreasing to 6,717 million in 2024. This suggests substantial goodwill amounts being accounted for in reported equity, with adjusted equity removing such intangible assets and reflecting a more conservative shareholder equity base.

Return on Equity (ROE) Analysis

The reported ROE percentage remained relatively stable, fluctuating between 39.59% and 42.77% during the five-year period. This steadiness indicates consistent profitability relative to reported equity. In stark contrast, the adjusted ROE started extraordinarily high at 432.85% in 2020 and declined steadily to 158.36% in 2024. Despite the decline, these adjusted ROE values remain substantially higher than the reported ROE, which can be attributed to the significantly lower adjusted equity base resulting from goodwill adjustments. This discrepancy underscores that goodwill adjustments greatly reduce the equity base, thereby inflating the ROE metric when calculated on an adjusted basis.

Summary Insights

The analysis reveals that while net income has gradually increased over the period, equity adjustments for goodwill materially affect the equity figures and related profitability metrics such as ROE. The relatively stable reported ROE contrasts with the pronounced decrease in adjusted ROE, reflecting the impact of excluding goodwill from shareholder equity. This demonstrates that goodwill represents a substantial portion of the company's reported equity, and removal of this intangible asset results in a smaller equity base and thus a higher return on that adjusted equity. Overall, profitability remains strong, and the trends indicate steady growth in net income alongside evolving equity composition affected by goodwill adjustments.

Net Income Trends

The reported net income attributable to shareowners shows a general upward trend from 7,747 million USD in 2020 to a peak of 10,714 million USD in 2023, followed by a slight decline to 10,631 million USD in 2024. The adjusted net income follows a very similar pattern, indicating minimal adjustments have been made between reported and adjusted figures. This suggests consistent profitability growth with a minor decrease in the most recent year.

Asset Base Development

Reported total assets increased steadily over the five-year period from 87,296 million USD in 2020 to 100,549 million USD in 2024, reflecting a growth in the company's asset base. The adjusted total assets, which exclude goodwill and possibly other intangibles, also show growth but at a somewhat lower level, moving from 69,790 million USD in 2020 to 82,410 million USD in 2024. The difference between reported and adjusted assets indicates a significant portion of the asset base consists of goodwill or intangible assets.

Return on Assets (ROA)

Reported ROA improved from 8.87% in 2020 to a high of 10.97% in 2023, before slightly dipping to 10.57% in 2024. Adjusted ROA, which is based on adjusted net income and adjusted assets excluding goodwill, consistently outperforms the reported ROA, moving from 11.12% in 2020 to a peak of 13.5% in 2023, slightly declining to 12.91% in 2024. This suggests that the company’s operational efficiency and asset utilization, when excluding goodwill, are stronger than the reported figures indicate.

Overall Insights

The data demonstrate positive growth in profitability and asset expansion over the analyzed period, with a consistent pattern of higher returns when adjusted for goodwill. The slight declines in both net income and ROA in 2024 merit attention for potential external or internal factors affecting performance. The clear distinction between reported and adjusted figures highlights the impact of intangible assets on financial metrics, emphasizing the importance of evaluating both perspectives for a comprehensive assessment of financial health.