Stock Analysis on Net
Stock Analysis on Net

Coca-Cola Co. (NYSE:KO)

Analysis of Investments

Microsoft Excel

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Coca-Cola Co., adjustment to net income attributable to shareowners of The Coca-Cola Company

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income attributable to shareowners of The Coca-Cola Company (as reported) 10,714 9,542 9,771 7,747 8,920
Add: Net change in unrealized gains (losses) on available-for-sale debt securities 24 37 (90) (47) 18
Net income attributable to shareowners of The Coca-Cola Company (adjusted) 10,738 9,579 9,681 7,700 8,938

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).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Coca-Cola Co., adjusted profitability 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 23.47% 22.27% 25.04% 23.32% 23.98%
Return on Equity (ROE)
Reported ROE 41.30% 39.59% 42.48% 40.14% 46.99%
Adjusted ROE 41.39% 39.74% 42.09% 39.90% 47.09%
Return on Assets (ROA)
Reported ROA 10.97% 10.29% 10.36% 8.87% 10.33%
Adjusted ROA 10.99% 10.33% 10.26% 8.82% 10.35%

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).

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 ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Coca-Cola Co. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Coca-Cola Co. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Coca-Cola Co., Profitability 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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to shareowners of The Coca-Cola Company 10,738 9,579 9,681 7,700 8,938
Net operating revenues 45,754 43,004 38,655 33,014 37,266
Profitability Ratio
Adjusted net profit margin2 23.47% 22.27% 25.04% 23.32% 23.98%

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 × 10,738 ÷ 45,754 = 23.47%

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 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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to shareowners of The Coca-Cola Company 10,738 9,579 9,681 7,700 8,938
Equity attributable to shareowners of The Coca-Cola Company 25,941 24,105 22,999 19,299 18,981
Profitability Ratio
Adjusted ROE2 41.39% 39.74% 42.09% 39.90% 47.09%

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 ÷ Equity attributable to shareowners of The Coca-Cola Company
= 100 × 10,738 ÷ 25,941 = 41.39%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Coca-Cola Co. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income attributable to shareowners of The Coca-Cola Company 10,738 9,579 9,681 7,700 8,938
Total assets 97,703 92,763 94,354 87,296 86,381
Profitability Ratio
Adjusted ROA2 10.99% 10.33% 10.26% 8.82% 10.35%

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 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 ÷ Total assets
= 100 × 10,738 ÷ 97,703 = 10.99%

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