Microsoft Excel LibreOffice Calc

Coca-Cola Co. (KO)


Adjusted Ratios

Difficulty: Advanced


Adjusted Ratios (Summary)

Coca-Cola Co., adjusted ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Activity
Total Asset Turnover
Reported 0.38 0.40 0.48 0.49 0.50
Adjusted 0.39 0.40 0.48 0.49 0.50
Liquidity
Current Ratio
Reported 1.05 1.34 1.28 1.24 1.02
Adjusted 1.07 1.36 1.33 1.28 1.04
Solvency
Debt to Equity
Reported 2.56 2.79 1.98 1.73 1.38
Adjusted 2.34 2.23 1.67 1.45 1.17
Debt to Capital
Reported 0.72 0.74 0.66 0.63 0.58
Adjusted 0.70 0.69 0.63 0.59 0.54
Financial Leverage
Reported 4.90 5.15 3.78 3.53 3.04
Adjusted 4.33 4.09 3.17 2.92 2.54
Profitability
Net Profit Margin
Reported 20.20% 3.52% 15.59% 16.60% 15.43%
Adjusted 13.48% 2.58% 11.35% 6.83% 10.87%
Return on Equity (ROE)
Reported 37.89% 7.31% 28.30% 28.77% 23.41%
Adjusted 22.83% 4.22% 17.14% 9.75% 13.70%
Return on Assets (ROA)
Reported 7.73% 1.42% 7.48% 8.16% 7.71%
Adjusted 5.27% 1.03% 5.40% 3.34% 5.39%

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).

Ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Coca-Cola Co.’s adjusted total asset turnover deteriorated from 2016 to 2017 and from 2017 to 2018.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Coca-Cola Co.’s adjusted current ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Coca-Cola Co.’s adjusted debt-to-equity ratio deteriorated from 2016 to 2017 and from 2017 to 2018.
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.’s adjusted debt-to-capital ratio deteriorated from 2016 to 2017 and from 2017 to 2018.
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.’s adjusted financial leverage increased from 2016 to 2017 and from 2017 to 2018.
Adjusted net profit margin An indicator of profitability, calculated as adjusted comprehensive income divided by total revenue. Coca-Cola Co.’s adjusted net profit margin deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Adjusted ROE A profitability ratio calculated as adjusted comprehensive income divided by adjusted total equity. Coca-Cola Co.’s adjusted ROE deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Adjusted ROA A profitability ratio calculated as adjusted comprehensive income divided by adjusted total assets. Coca-Cola Co.’s adjusted ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.

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


Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Reported
Selected Financial Data (USD $ in millions)
Net operating revenues 31,856  35,410  41,863  44,294  45,998 
Total assets 83,216  87,896  87,270  90,093  92,023 
Ratio
Total asset turnover1 0.38 0.40 0.48 0.49 0.50
Adjusted
Selected Financial Data (USD $ in millions)
Net operating revenues 31,856  35,410  41,863  44,294  45,998 
Adjusted total assets2 81,505  88,553  87,975  90,613  92,794 
Ratio
Adjusted total asset turnover3 0.39 0.40 0.48 0.49 0.50

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).

2018 Calculations

1 Total asset turnover = Net operating revenues ÷ Total assets
= 31,856 ÷ 83,216 = 0.38

2 Adjusted total assets. See Details »

3 Adjusted total asset turnover = Net operating revenues ÷ Adjusted total assets
= 31,856 ÷ 81,505 = 0.39

Ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Coca-Cola Co.’s adjusted total asset turnover deteriorated from 2016 to 2017 and from 2017 to 2018.

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Reported
Selected Financial Data (USD $ in millions)
Current assets 30,634  36,545  34,010  33,395  32,986 
Current liabilities 29,223  27,194  26,532  26,930  32,374 
Ratio
Current ratio1 1.05 1.34 1.28 1.24 1.02
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted current assets2 31,123  37,022  34,396  33,596  33,157 
Adjusted current liabilities3 29,223  27,194  25,840  26,187  31,924 
Ratio
Adjusted current ratio4 1.07 1.36 1.33 1.28 1.04

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).

2018 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 30,634 ÷ 29,223 = 1.05

2 Adjusted current assets. See Details »

3 Adjusted current liabilities. See Details »

4 Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 31,123 ÷ 29,223 = 1.07

Ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Coca-Cola Co.’s adjusted current ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Reported
Selected Financial Data (USD $ in millions)
Total debt 43,555  47,685  45,709  44,213  41,745 
Equity attributable to shareowners of The Coca-Cola Company 16,981  17,072  23,062  25,554  30,320 
Ratio
Debt to equity1 2.56 2.79 1.98 1.73 1.38
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted total debt2 44,022  48,195  46,354  44,892  42,664 
Adjusted equity attributable to shareowners of The Coca-Cola Company3 18,813  21,645  27,725  31,039  36,499 
Ratio
Adjusted debt to equity4 2.34 2.23 1.67 1.45 1.17

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).

2018 Calculations

1 Debt to equity = Total debt ÷ Equity attributable to shareowners of The Coca-Cola Company
= 43,555 ÷ 16,981 = 2.56

2 Adjusted total debt. See Details »

3 Adjusted equity attributable to shareowners of The Coca-Cola Company. See Details »

4 Adjusted debt to equity = Adjusted total debt ÷ Adjusted equity attributable to shareowners of The Coca-Cola Company
= 44,022 ÷ 18,813 = 2.34

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.’s adjusted debt-to-equity ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Reported
Selected Financial Data (USD $ in millions)
Total debt 43,555  47,685  45,709  44,213  41,745 
Total capital 60,536  64,757  68,771  69,767  72,065 
Ratio
Debt to capital1 0.72 0.74 0.66 0.63 0.58
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted total debt2 44,022  48,195  46,354  44,892  42,664 
Adjusted total capital3 62,835  69,840  74,079  75,931  79,163 
Ratio
Adjusted debt to capital4 0.70 0.69 0.63 0.59 0.54

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).

2018 Calculations

1 Debt to capital = Total debt ÷ Total capital
= 43,555 ÷ 60,536 = 0.72

2 Adjusted total debt. See Details »

3 Adjusted total capital. See Details »

4 Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 44,022 ÷ 62,835 = 0.70

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.’s adjusted debt-to-capital ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Reported
Selected Financial Data (USD $ in millions)
Total assets 83,216  87,896  87,270  90,093  92,023 
Equity attributable to shareowners of The Coca-Cola Company 16,981  17,072  23,062  25,554  30,320 
Ratio
Financial leverage1 4.90 5.15 3.78 3.53 3.04
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted total assets2 81,505  88,553  87,975  90,613  92,794 
Adjusted equity attributable to shareowners of The Coca-Cola Company3 18,813  21,645  27,725  31,039  36,499 
Ratio
Adjusted financial leverage4 4.33 4.09 3.17 2.92 2.54

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).

2018 Calculations

1 Financial leverage = Total assets ÷ Equity attributable to shareowners of The Coca-Cola Company
= 83,216 ÷ 16,981 = 4.90

2 Adjusted total assets. See Details »

3 Adjusted equity attributable to shareowners of The Coca-Cola Company. See Details »

4 Adjusted financial leverage = Adjusted total assets ÷ Adjusted equity attributable to shareowners of The Coca-Cola Company
= 81,505 ÷ 18,813 = 4.33

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.’s adjusted financial leverage increased from 2016 to 2017 and from 2017 to 2018.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Reported
Selected Financial Data (USD $ in millions)
Net income attributable to shareowners of The Coca-Cola Company 6,434  1,248  6,527  7,351  7,098 
Net operating revenues 31,856  35,410  41,863  44,294  45,998 
Ratio
Net profit margin1 20.20% 3.52% 15.59% 16.60% 15.43%
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted net income attributable to shareowners of The Coca-Cola Company2 4,295  913  4,751  3,027  4,999 
Net operating revenues 31,856  35,410  41,863  44,294  45,998 
Ratio
Adjusted net profit margin3 13.48% 2.58% 11.35% 6.83% 10.87%

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).

2018 Calculations

1 Net profit margin = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Net operating revenues
= 100 × 6,434 ÷ 31,856 = 20.20%

2 Adjusted net income attributable to shareowners of The Coca-Cola Company. See Details »

3 Adjusted net profit margin = 100 × Adjusted net income attributable to shareowners of The Coca-Cola Company ÷ Net operating revenues
= 100 × 4,295 ÷ 31,856 = 13.48%

Ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted comprehensive income divided by total revenue. Coca-Cola Co.’s adjusted net profit margin deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Reported
Selected Financial Data (USD $ in millions)
Net income attributable to shareowners of The Coca-Cola Company 6,434  1,248  6,527  7,351  7,098 
Equity attributable to shareowners of The Coca-Cola Company 16,981  17,072  23,062  25,554  30,320 
Ratio
ROE1 37.89% 7.31% 28.30% 28.77% 23.41%
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted net income attributable to shareowners of The Coca-Cola Company2 4,295  913  4,751  3,027  4,999 
Adjusted equity attributable to shareowners of The Coca-Cola Company3 18,813  21,645  27,725  31,039  36,499 
Ratio
Adjusted ROE4 22.83% 4.22% 17.14% 9.75% 13.70%

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).

2018 Calculations

1 ROE = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Equity attributable to shareowners of The Coca-Cola Company
= 100 × 6,434 ÷ 16,981 = 37.89%

2 Adjusted net income attributable to shareowners of The Coca-Cola Company. See Details »

3 Adjusted equity attributable to shareowners of The Coca-Cola Company. See Details »

4 Adjusted ROE = 100 × Adjusted net income attributable to shareowners of The Coca-Cola Company ÷ Adjusted equity attributable to shareowners of The Coca-Cola Company
= 100 × 4,295 ÷ 18,813 = 22.83%

Ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted comprehensive income divided by adjusted total equity. Coca-Cola Co.’s adjusted ROE deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Reported
Selected Financial Data (USD $ in millions)
Net income attributable to shareowners of The Coca-Cola Company 6,434  1,248  6,527  7,351  7,098 
Total assets 83,216  87,896  87,270  90,093  92,023 
Ratio
ROA1 7.73% 1.42% 7.48% 8.16% 7.71%
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted net income attributable to shareowners of The Coca-Cola Company2 4,295  913  4,751  3,027  4,999 
Adjusted total assets3 81,505  88,553  87,975  90,613  92,794 
Ratio
Adjusted ROA4 5.27% 1.03% 5.40% 3.34% 5.39%

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).

2018 Calculations

1 ROA = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Total assets
= 100 × 6,434 ÷ 83,216 = 7.73%

2 Adjusted net income attributable to shareowners of The Coca-Cola Company. See Details »

3 Adjusted total assets. See Details »

4 Adjusted ROA = 100 × Adjusted net income attributable to shareowners of The Coca-Cola Company ÷ Adjusted total assets
= 100 × 4,295 ÷ 81,505 = 5.27%

Ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted comprehensive income divided by adjusted total assets. Coca-Cola Co.’s adjusted ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.