Stock Analysis on Net
Stock Analysis on Net

Coca-Cola Co. (NYSE:KO)

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Coca-Cola Co., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
United States 83 468 243 296 508
State and local 129 118 106 396 94
International 2,039 1,651 1,378 1,307 1,479
Current 2,251 2,237 1,727 1,999 2,081
United States (135) (121) 229 (220) (65)
State and local (78) (4) (10) 21 52
International 211 3 675 181 (267)
Deferred (2) (122) 894 (18) (280)
Income taxes 2,249 2,115 2,621 1,981 1,801

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
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Coca-Cola Co. current increased from 2021 to 2022 and from 2022 to 2023.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Coca-Cola Co. deferred decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Coca-Cola Co. income taxes decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Effective Income Tax Rate (EITR)

Coca-Cola Co., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Statutory U.S. federal tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
State and local income taxes, net of federal benefit 1.10% 1.40% 1.10% 1.10% 0.90%
Earnings in jurisdictions taxed at rates different from the statutory U.S. federal tax rate -0.30% -0.60% 2.30% 0.90% 1.10%
Equity income or loss -2.10% -2.70% -2.00% -1.40% -1.60%
Excess tax benefits on stock-based compensation -0.30% -0.70% -0.50% -0.80% -0.90%
Other, net -2.00% -0.30% -0.80% -0.50% -3.80%
Effective tax rate 17.40% 18.10% 21.10% 20.30% 16.70%

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
Effective tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Coca-Cola Co. effective tax rate decreased from 2021 to 2022 and from 2022 to 2023.

Components of Deferred Tax Assets and Liabilities

Coca-Cola Co., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Property, plant and equipment 25 40 36 44 53
Trademarks and other intangible assets 1,414 1,617 1,910 2,214 2,267
Equity method investments, including foreign currency translation adjustments 239 366 595 580 372
Derivative financial instruments 156 207 215 523 389
Other liabilities 1,709 1,503 1,255 1,401 1,066
Benefit plans 554 522 670 893 880
Net operating/capital loss carryforwards 273 248 280 320 259
Other 445 530 377 391 311
Gross deferred tax assets 4,815 5,033 5,338 6,366 5,597
Valuation allowances (396) (424) (401) (406) (303)
Deferred tax assets 4,419 4,609 4,937 5,960 5,294
Property, plant and equipment (748) (741) (721) (837) (877)
Trademarks and other intangible assets (1,917) (1,843) (1,783) (1,661) (1,533)
Equity method investments, including foreign currency translation adjustments (1,633) (1,632) (1,619) (1,533) (1,667)
Derivative financial instruments (282) (488) (500) (435) (348)
Other liabilities (330) (372) (315) (402) (351)
Benefit plans (428) (490) (527) (321) (286)
Other (159) (211) (164) (144) (104)
Deferred tax liabilities (5,497) (5,777) (5,629) (5,333) (5,166)
Net deferred tax assets (liabilities) (1,078) (1,168) (692) 627 128

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
Gross deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Coca-Cola Co. gross deferred tax assets decreased from 2021 to 2022 and from 2022 to 2023.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Coca-Cola Co. deferred tax assets decreased from 2021 to 2022 and from 2022 to 2023.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Coca-Cola Co. net deferred tax assets (liabilities) decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Deferred Tax Assets and Liabilities, Classification

Coca-Cola Co., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Deferred tax assets 1,561 1,746 2,129 2,460 2,412
Deferred tax liabilities 2,639 2,914 2,821 1,833 2,284

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
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Coca-Cola Co. deferred tax assets decreased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Coca-Cola Co. deferred tax liabilities increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Adjustments to Financial Statements: Removal of Deferred Taxes

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: Noncurrent deferred tax assets, net 1,561 1,746 2,129 2,460 2,412
Total assets (adjusted) 96,142 91,017 92,225 84,836 83,969
Adjustment to Total Liabilities
Total liabilities (as reported) 70,223 66,937 69,494 66,012 65,283
Less: Noncurrent deferred tax liabilities, net 2,639 2,914 2,821 1,833 2,284
Total liabilities (adjusted) 67,584 64,023 66,673 64,179 62,999
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: Net deferred tax assets (liabilities) (1,078) (1,168) (692) 627 128
Equity attributable to shareowners of The Coca-Cola Company (adjusted) 27,019 25,273 23,691 18,672 18,853
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: Deferred income tax expense (benefit) (2) (122) 894 (18) (280)
Net income attributable to shareowners of The Coca-Cola Company (adjusted) 10,712 9,420 10,665 7,729 8,640

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 Deferred Taxes (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 23.41% 21.90% 27.59% 23.41% 23.18%
Total Asset Turnover
Reported total asset turnover 0.47 0.46 0.41 0.38 0.43
Adjusted total asset turnover 0.48 0.47 0.42 0.39 0.44
Financial Leverage
Reported financial leverage 3.77 3.85 4.10 4.52 4.55
Adjusted financial leverage 3.56 3.60 3.89 4.54 4.45
Return on Equity (ROE)
Reported ROE 41.30% 39.59% 42.48% 40.14% 46.99%
Adjusted ROE 39.65% 37.27% 45.02% 41.39% 45.83%
Return on Assets (ROA)
Reported ROA 10.97% 10.29% 10.36% 8.87% 10.33%
Adjusted ROA 11.14% 10.35% 11.56% 9.11% 10.29%

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 total 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 and 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 but then slightly improved 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 not reaching 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to shareowners of The Coca-Cola Company 10,712 9,420 10,665 7,729 8,640
Net operating revenues 45,754 43,004 38,655 33,014 37,266
Profitability Ratio
Adjusted net profit margin2 23.41% 21.90% 27.59% 23.41% 23.18%

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 × 10,712 ÷ 45,754 = 23.41%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Net operating revenues 45,754 43,004 38,655 33,014 37,266
Adjusted total assets 96,142 91,017 92,225 84,836 83,969
Activity Ratio
Adjusted total asset turnover2 0.48 0.47 0.42 0.39 0.44

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).

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 ÷ 96,142 = 0.48

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 and 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 96,142 91,017 92,225 84,836 83,969
Adjusted equity attributable to shareowners of The Coca-Cola Company 27,019 25,273 23,691 18,672 18,853
Solvency Ratio
Adjusted financial leverage2 3.56 3.60 3.89 4.54 4.45

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
= 96,142 ÷ 27,019 = 3.56

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to shareowners of The Coca-Cola Company 10,712 9,420 10,665 7,729 8,640
Adjusted equity attributable to shareowners of The Coca-Cola Company 27,019 25,273 23,691 18,672 18,853
Profitability Ratio
Adjusted ROE2 39.65% 37.27% 45.02% 41.39% 45.83%

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 × 10,712 ÷ 27,019 = 39.65%

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 but then slightly improved 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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to shareowners of The Coca-Cola Company 10,712 9,420 10,665 7,729 8,640
Adjusted total assets 96,142 91,017 92,225 84,836 83,969
Profitability Ratio
Adjusted ROA2 11.14% 10.35% 11.56% 9.11% 10.29%

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 × 10,712 ÷ 96,142 = 11.14%

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 not reaching 2021 level.