Stock Analysis on Net
Stock Analysis on Net

Coca-Cola Co. (NYSE:KO)

Common-Size Income Statement 

Coca-Cola Co., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Net operating revenues 100.00 100.00 100.00 100.00 100.00
Cost of goods sold -38.37 -38.94 -40.48 -41.86 -39.73
Gross profit 61.63% 61.06% 59.52% 58.14% 60.27%
Selling, general and administrative expenses -30.29 -30.99 -30.54 -29.95 -31.42
Other operating charges -2.63 -8.85 -4.26 -2.83 -2.19
Operating income 28.71% 21.23% 24.72% 25.37% 26.67%
Interest income 1.64 2.10 1.98 1.04 0.71
Interest expense -3.45 -3.52 -3.34 -2.05 -4.13
Equity income, net 4.24 3.76 3.70 3.42 3.72
Other income (loss), net 2.24 4.23 1.25 -0.61 5.17
Income before income taxes 33.37% 27.81% 28.31% 27.17% 32.14%
Income taxes -5.97 -5.18 -4.92 -4.92 -6.78
Consolidated net income 27.40% 22.63% 23.39% 22.26% 25.36%
Net (income) loss attributable to noncontrolling interests -0.06 -0.04 0.02 -0.07 -0.09
Net income attributable to shareowners of The Coca-Cola Company 27.34% 22.59% 23.42% 22.19% 25.28%

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The common-size income statement reveals several noteworthy trends over the five-year period. A general pattern of fluctuating profitability is observed, with improvements in key metrics towards the end of the period. Cost of goods sold as a percentage of net operating revenues generally decreased, while operating income experienced volatility before a significant increase in the final year.

Gross Profit
Gross profit, expressed as a percentage of net operating revenues, initially declined from 60.27% in 2021 to 58.14% in 2022. It then exhibited a recovery, reaching 59.52% in 2023 and further improving to 61.06% in 2024 and 61.63% in 2025. This suggests improving efficiency in production or sourcing of goods over time.
Operating Expenses
Selling, general and administrative expenses remained relatively stable, fluctuating between 29.95% and 31.42% of net operating revenues. However, other operating charges demonstrated significant variability. A substantial increase was noted in 2024, reaching 8.85% before decreasing to 2.63% in 2025. This fluctuation warrants further investigation to understand the underlying drivers.
Operating Income
Operating income as a percentage of net operating revenues decreased from 26.67% in 2021 to 24.72% in 2023, indicating pressure on core profitability. A sharp rebound occurred in 2025, with operating income rising to 28.71%, likely influenced by the decrease in other operating charges and improvements in gross profit.
Non-Operating Items
Interest income and equity income, net, both showed an increasing trend from 2021 to 2023, before stabilizing or slightly decreasing in 2024 and 2025. Interest expense decreased significantly from 2021 to 2022, then fluctuated before remaining relatively stable in the final two years. Other income (loss), net, was volatile, with a notable loss in 2022 and gains in 2024 and 2025.
Net Income
Consolidated net income followed a similar pattern to operating income, declining from 25.36% in 2021 to 22.26% in 2022, then increasing to 27.40% in 2025. Net income attributable to shareowners of the company mirrored this trend. The impact of noncontrolling interests remained minimal throughout the period.
Income Taxes
The percentage of income taxes relative to net operating revenues remained relatively consistent, fluctuating between 4.92% and 6.78%. The increase in 2025 to 5.97% corresponds with the increase in net income.

Overall, the period demonstrates a recovery in profitability towards the end, driven by improvements in gross profit and a reduction in other operating charges. The volatility in other operating charges and the initial decline in operating income warrant further scrutiny. The consistent tax rate suggests a stable tax environment.