Coca-Cola Co. (KO)
Analysis of Inventory
Difficulty: Advanced
Inventory Accounting Policy
Inventories consist primarily of raw materials and packaging (which include ingredients and supplies) and finished goods (which include concentrates and syrups in Coca-Cola’s concentrate operations and finished beverages in the finished product operations). Inventories are valued at the lower of cost or net realizable value. Coca-Cola determines cost on the basis of the average cost or first-in, first-out methods.
Source: 10-K (filing date: 2019-02-21).
Inventory Disclosure
Coca-Cola Co., Statement of Financial Position, Inventory
USD $ in millions
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Raw materials and packaging | 1,862 | 1,729 | 1,565 | 1,564 | 1,615 | ||||||
| Finished goods | 692 | 693 | 844 | 1,032 | 1,134 | ||||||
| Other | 212 | 233 | 266 | 306 | 351 | ||||||
| Inventories | 2,766 | 2,655 | 2,675 | 2,902 | 3,100 |
Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-25).
| Item | Description | The company |
|---|---|---|
| Inventories | Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer. | Coca-Cola Co.’s inventories declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level. |