Coca-Cola Co. (NYSE:KO)

The financial data over the indicated periods demonstrates several noteworthy trends and fluctuations in operational performance and profitability ratios relative to net operating revenues.

Cost of goods sold (COGS)

COGS as a percentage of net operating revenues shows a generally decreasing trend from -40.69% in 2020 to -38.94% in 2024, despite some fluctuation. This reduction suggests improved production efficiency or cost management over the years, with a notable decrease in 2024 compared to prior periods.

Gross profit

Gross profit margins remain strong and relatively stable, fluctuating around 58%-61%. The highest margin appears in 2024 at 61.06%, which aligns with the decreasing trend in COGS, indicating effective control over direct costs contributing positively to profitability.

Selling, general and administrative expenses (SG&A)

SG&A expenses as a percentage of net operating revenues have shown fluctuations between -29.48% and -31.42%. Notably, there was an increase in 2021, followed by slight declines and then a small increase again in 2024. This volatility may reflect varying investment levels in marketing, administration, or sales functions impacting operating costs.

Other operating charges

There is a marked increase in other operating charges, rising from -2.58% in 2020 to -8.85% in 2024. The sharp rise post-2022 suggests increased non-standard operating expenses or extraordinary charges impacting operating income negatively, a trend that may warrant further investigation for causative factors.

Operating income

Operating income margins have declined from 27.25% in 2020 to 21.23% in 2024. This decline is influenced largely by increased other operating charges offsetting gains from improvements in gross profit margins. The downward trajectory in operating income indicates increasing pressure on profitability from operating expenses.

Interest income and expense

Interest income has generally increased, rising from 1.12% in 2020 to 2.10% in 2024, indicating better returns on investments or cash management. Interest expense, however, decreased significantly from -4.35% in 2020 to a low of -2.05% in 2022 but slightly increased thereafter, potentially reflecting changing debt structures or interest rate environments.

Equity income, net

Equity income remains fairly stable, fluctuating slightly between 2.96% and 3.76%, contributing positively and steadily to income streams.

Other income (loss), net

Other income showed volatility: a peak of 5.17% in 2021, a drop to negative -0.61% in 2022, and a recovery to 4.23% in 2024. These variations imply episodic gains or losses unrelated to core operations affecting overall profitability.

Income before income taxes

Income before taxes sees variability, peaking at 32.14% in 2021 before decreasing and stabilizing around 27%-28% in later years, tracking closely with operating income and other income effects.

Income taxes

Income taxes as a percentage of net operating revenues have decreased from -6.00% in 2020 to around -5.18% in 2024, suggesting possible reductions in effective tax rates or changes in taxable income composition.

Consolidated net income

Consolidated net income margins declined from 23.53% in 2020 to 22.63% in 2024, with a peak at 25.36% in 2021. This reflects the combined effect of operational expenses, interest, and tax dynamics, resulting in slight erosion of bottom-line profitability.

Net income attributable to shareholders

The net income attributable to shareowners follows a similar trend as consolidated net income, moving from 23.47% in 2020 to 22.59% in 2024, indicating consistent shareholder returns despite some margin pressure.

Overall, the data reveals that while gross profit margins and certain income components have improved or remained stable, increased other operating charges and operating expenses have driven a decline in operating and net income margins over the period analyzed. The company appears to manage interest costs effectively, and income tax burdens have decreased somewhat. The interplay of these factors suggests a strategic focus on cost efficiency in production, contrasted against rising non-operating costs impacting overall profitability.