Stock Analysis on Net

Coca-Cola Co. (NYSE:KO)

Adjusted Financial Ratios

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Adjusted Financial Ratios (Summary)

Coca-Cola Co., adjusted financial ratios

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Activity Ratio
Total Asset Turnover
Reported 0.38 0.43 0.38 0.40 0.48
Adjusted 0.39 0.44 0.39 0.40 0.48
Liquidity Ratio
Current Ratio
Reported 1.32 0.76 1.05 1.34 1.28
Adjusted 1.35 0.78 1.07 1.36 1.33
Solvency Ratios
Debt to Equity
Reported 2.22 2.25 2.56 2.79 1.98
Adjusted 2.08 2.05 2.33 2.21 1.66
Debt to Capital
Reported 0.69 0.69 0.72 0.74 0.66
Adjusted 0.68 0.67 0.70 0.69 0.62
Financial Leverage
Reported 4.52 4.55 4.90 5.15 3.78
Adjusted 3.99 3.92 4.31 4.05 3.16
Profitability Ratios
Net Profit Margin
Reported 23.47% 23.94% 20.20% 3.52% 15.59%
Adjusted 19.76% 23.15% 13.12% 2.73% 11.22%
Return on Equity (ROE)
Reported 40.14% 46.99% 37.89% 7.31% 28.30%
Adjusted 30.51% 40.02% 22.11% 4.43% 16.85%
Return on Assets (ROA)
Reported 8.87% 10.33% 7.73% 1.42% 7.48%
Adjusted 7.64% 10.21% 5.13% 1.09% 5.34%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

Financial 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 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Coca-Cola Co. adjusted current ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Coca-Cola Co. adjusted debt-to-equity ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Coca-Cola Co. adjusted debt-to-capital ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.
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 2018 to 2019 but then slightly increased from 2019 to 2020.
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 improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Coca-Cola Co. adjusted ROE improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Coca-Cola Co. adjusted ROA improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Coca-Cola Co., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net operating revenues 33,014  37,266  31,856  35,410  41,863 
Total assets 87,296  86,381  83,216  87,896  87,270 
Activity Ratio
Total asset turnover1 0.38 0.43 0.38 0.40 0.48
Adjusted
Selected Financial Data (US$ in millions)
Net operating revenues 33,014  37,266  31,856  35,410  41,863 
Adjusted total assets2 85,362  84,493  81,505  88,553  87,975 
Activity Ratio
Adjusted total asset turnover3 0.39 0.44 0.39 0.40 0.48

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Total asset turnover = Net operating revenues ÷ Total assets
= 33,014 ÷ 87,296 = 0.38

2 Adjusted total assets. See details »

3 2020 Calculation
Adjusted total asset turnover = Net operating revenues ÷ Adjusted total assets
= 33,014 ÷ 85,362 = 0.39

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 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Adjusted Current Ratio

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Current assets 19,240  20,411  30,634  36,545  34,010 
Current liabilities 14,601  26,973  29,223  27,194  26,532 
Liquidity Ratio
Current ratio1 1.32 0.76 1.05 1.34 1.28
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 19,766  20,935  31,123  37,022  34,396 
Adjusted current liabilities3 14,601  26,973  29,223  27,194  25,840 
Liquidity Ratio
Adjusted current ratio4 1.35 0.78 1.07 1.36 1.33

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 19,240 ÷ 14,601 = 1.32

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2020 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 19,766 ÷ 14,601 = 1.35

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Coca-Cola Co. adjusted current ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Adjusted Debt to Equity

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total debt 42,793  42,763  43,555  47,685  45,709 
Equity attributable to shareowners of The Coca-Cola Company 19,299  18,981  16,981  17,072  23,062 
Solvency Ratio
Debt to equity1 2.22 2.25 2.56 2.79 1.98
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 44,415  44,155  44,022  48,195  46,354 
Adjusted total equity3 21,385  21,560  18,903  21,851  27,876 
Solvency Ratio
Adjusted debt to equity4 2.08 2.05 2.33 2.21 1.66

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Debt to equity = Total debt ÷ Equity attributable to shareowners of The Coca-Cola Company
= 42,793 ÷ 19,299 = 2.22

2 Adjusted total debt. See details »

3 Adjusted total equity. See details »

4 2020 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= 44,415 ÷ 21,385 = 2.08

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Coca-Cola Co. adjusted debt-to-equity ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total debt 42,793  42,763  43,555  47,685  45,709 
Total capital 62,092  61,744  60,536  64,757  68,771 
Solvency Ratio
Debt to capital1 0.69 0.69 0.72 0.74 0.66
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 44,415  44,155  44,022  48,195  46,354 
Adjusted total capital3 65,800  65,715  62,925  70,046  74,230 
Solvency Ratio
Adjusted debt to capital4 0.68 0.67 0.70 0.69 0.62

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 42,793 ÷ 62,092 = 0.69

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2020 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 44,415 ÷ 65,800 = 0.68

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Coca-Cola Co. adjusted debt-to-capital ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total assets 87,296  86,381  83,216  87,896  87,270 
Equity attributable to shareowners of The Coca-Cola Company 19,299  18,981  16,981  17,072  23,062 
Solvency Ratio
Financial leverage1 4.52 4.55 4.90 5.15 3.78
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 85,362  84,493  81,505  88,553  87,975 
Adjusted total equity3 21,385  21,560  18,903  21,851  27,876 
Solvency Ratio
Adjusted financial leverage4 3.99 3.92 4.31 4.05 3.16

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Financial leverage = Total assets ÷ Equity attributable to shareowners of The Coca-Cola Company
= 87,296 ÷ 19,299 = 4.52

2 Adjusted total assets. See details »

3 Adjusted total equity. See details »

4 2020 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= 85,362 ÷ 21,385 = 3.99

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 2018 to 2019 but then slightly increased from 2019 to 2020.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net income attributable to shareowners of The Coca-Cola Company 7,747  8,920  6,434  1,248  6,527 
Net operating revenues 33,014  37,266  31,856  35,410  41,863 
Profitability Ratio
Net profit margin1 23.47% 23.94% 20.20% 3.52% 15.59%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted consolidated net income2 6,525  8,628  4,179  968  4,698 
Net operating revenues 33,014  37,266  31,856  35,410  41,863 
Profitability Ratio
Adjusted net profit margin3 19.76% 23.15% 13.12% 2.73% 11.22%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Net profit margin = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Net operating revenues
= 100 × 7,747 ÷ 33,014 = 23.47%

2 Adjusted consolidated net income. See details »

3 2020 Calculation
Adjusted net profit margin = 100 × Adjusted consolidated net income ÷ Net operating revenues
= 100 × 6,525 ÷ 33,014 = 19.76%

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 improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net income attributable to shareowners of The Coca-Cola Company 7,747  8,920  6,434  1,248  6,527 
Equity attributable to shareowners of The Coca-Cola Company 19,299  18,981  16,981  17,072  23,062 
Profitability Ratio
ROE1 40.14% 46.99% 37.89% 7.31% 28.30%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted consolidated net income2 6,525  8,628  4,179  968  4,698 
Adjusted total equity3 21,385  21,560  18,903  21,851  27,876 
Profitability Ratio
Adjusted ROE4 30.51% 40.02% 22.11% 4.43% 16.85%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
ROE = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Equity attributable to shareowners of The Coca-Cola Company
= 100 × 7,747 ÷ 19,299 = 40.14%

2 Adjusted consolidated net income. See details »

3 Adjusted total equity. See details »

4 2020 Calculation
Adjusted ROE = 100 × Adjusted consolidated net income ÷ Adjusted total equity
= 100 × 6,525 ÷ 21,385 = 30.51%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Coca-Cola Co. adjusted ROE improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net income attributable to shareowners of The Coca-Cola Company 7,747  8,920  6,434  1,248  6,527 
Total assets 87,296  86,381  83,216  87,896  87,270 
Profitability Ratio
ROA1 8.87% 10.33% 7.73% 1.42% 7.48%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted consolidated net income2 6,525  8,628  4,179  968  4,698 
Adjusted total assets3 85,362  84,493  81,505  88,553  87,975 
Profitability Ratio
Adjusted ROA4 7.64% 10.21% 5.13% 1.09% 5.34%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
ROA = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Total assets
= 100 × 7,747 ÷ 87,296 = 8.87%

2 Adjusted consolidated net income. See details »

3 Adjusted total assets. See details »

4 2020 Calculation
Adjusted ROA = 100 × Adjusted consolidated net income ÷ Adjusted total assets
= 100 × 6,525 ÷ 85,362 = 7.64%

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 improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.