Stock Analysis on Net
Stock Analysis on Net
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Coca-Cola Co. (NYSE:KO)

Adjusted Financial Ratios

Advanced level


Adjusted Financial Ratios (Summary)

Coca-Cola Co., adjusted financial ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Activity Ratio
Total Asset Turnover
Reported 0.43 0.38 0.40 0.48 0.49
Adjusted 0.44 0.39 0.40 0.48 0.49
Liquidity Ratio
Current Ratio
Reported 0.76 1.05 1.34 1.28 1.24
Adjusted 0.78 1.07 1.36 1.33 1.28
Solvency Ratios
Debt to Equity
Reported 2.25 2.56 2.79 1.98 1.73
Adjusted 2.05 2.34 2.23 1.67 1.45
Debt to Capital
Reported 0.69 0.72 0.74 0.66 0.63
Adjusted 0.67 0.70 0.69 0.63 0.59
Financial Leverage
Reported 4.55 4.90 5.15 3.78 3.53
Adjusted 3.93 4.33 4.09 3.17 2.92
Profitability Ratios
Net Profit Margin
Reported 23.94% 20.20% 3.52% 15.59% 16.60%
Adjusted 23.22% 13.48% 2.58% 11.35% 6.83%
Return on Equity (ROE)
Reported 46.99% 37.89% 7.31% 28.30% 28.77%
Adjusted 40.25% 22.83% 4.22% 17.14% 9.75%
Return on Assets (ROA)
Reported 10.33% 7.73% 1.42% 7.48% 8.16%
Adjusted 10.24% 5.27% 1.03% 5.40% 3.34%

Based on: 10-K (filing date: 2020-02-24), 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).

Financial 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 ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Coca-Cola Co.’s adjusted current ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
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 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
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 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
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 ratio increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Coca-Cola Co.’s adjusted net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Coca-Cola Co.’s adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Coca-Cola Co.’s adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.

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


Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net operating revenues 37,266  31,856  35,410  41,863  44,294 
Total assets 86,381  83,216  87,896  87,270  90,093 
Activity Ratio
Total asset turnover1 0.43 0.38 0.40 0.48 0.49
Adjusted
Selected Financial Data (US$ in millions)
Net operating revenues 37,266  31,856  35,410  41,863  44,294 
Adjusted total assets2 84,493  81,505  88,553  87,975  90,613 
Activity Ratio
Adjusted total asset turnover3 0.44 0.39 0.40 0.48 0.49

Based on: 10-K (filing date: 2020-02-24), 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).

1 2019 Calculation
Total asset turnover = Net operating revenues ÷ Total assets
= 37,266 ÷ 86,381 = 0.43

2 Adjusted total assets. See details »

3 2019 Calculation
Adjusted total asset turnover = Net operating revenues ÷ Adjusted total assets
= 37,266 ÷ 84,493 = 0.44

Activity 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 ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Current assets 20,411  30,634  36,545  34,010  33,395 
Current liabilities 26,973  29,223  27,194  26,532  26,930 
Liquidity Ratio
Current ratio1 0.76 1.05 1.34 1.28 1.24
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 20,935  31,123  37,022  34,396  33,596 
Adjusted current liabilities3 26,973  29,223  27,194  25,840  26,187 
Liquidity Ratio
Adjusted current ratio4 0.78 1.07 1.36 1.33 1.28

Based on: 10-K (filing date: 2020-02-24), 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).

1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 20,411 ÷ 26,973 = 0.76

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2019 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 20,935 ÷ 26,973 = 0.78

Liquidity 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 deteriorated from 2017 to 2018 and from 2018 to 2019.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total debt 42,763  43,555  47,685  45,709  44,213 
Equity attributable to shareowners of The Coca-Cola Company 18,981  16,981  17,072  23,062  25,554 
Solvency Ratio
Debt to equity1 2.25 2.56 2.79 1.98 1.73
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 44,155  44,022  48,195  46,354  44,892 
Adjusted total equity3 21,494  18,813  21,645  27,725  31,039 
Solvency Ratio
Adjusted debt to equity4 2.05 2.34 2.23 1.67 1.45

Based on: 10-K (filing date: 2020-02-24), 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).

1 2019 Calculation
Debt to equity = Total debt ÷ Equity attributable to shareowners of The Coca-Cola Company
= 42,763 ÷ 18,981 = 2.25

2 Adjusted total debt. See details »

3 Adjusted total equity. See details »

4 2019 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= 44,155 ÷ 21,494 = 2.05

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.’s adjusted debt-to-equity ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total debt 42,763  43,555  47,685  45,709  44,213 
Total capital 61,744  60,536  64,757  68,771  69,767 
Solvency Ratio
Debt to capital1 0.69 0.72 0.74 0.66 0.63
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 44,155  44,022  48,195  46,354  44,892 
Adjusted total capital3 65,649  62,835  69,840  74,079  75,931 
Solvency Ratio
Adjusted debt to capital4 0.67 0.70 0.69 0.63 0.59

Based on: 10-K (filing date: 2020-02-24), 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).

1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 42,763 ÷ 61,744 = 0.69

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2019 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 44,155 ÷ 65,649 = 0.67

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.’s adjusted debt-to-capital ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total assets 86,381  83,216  87,896  87,270  90,093 
Equity attributable to shareowners of The Coca-Cola Company 18,981  16,981  17,072  23,062  25,554 
Solvency Ratio
Financial leverage1 4.55 4.90 5.15 3.78 3.53
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 84,493  81,505  88,553  87,975  90,613 
Adjusted total equity3 21,494  18,813  21,645  27,725  31,039 
Solvency Ratio
Adjusted financial leverage4 3.93 4.33 4.09 3.17 2.92

Based on: 10-K (filing date: 2020-02-24), 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).

1 2019 Calculation
Financial leverage = Total assets ÷ Equity attributable to shareowners of The Coca-Cola Company
= 86,381 ÷ 18,981 = 4.55

2 Adjusted total assets. See details »

3 Adjusted total equity. See details »

4 2019 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= 84,493 ÷ 21,494 = 3.93

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.’s adjusted financial leverage ratio increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net income attributable to shareowners of The Coca-Cola Company 8,920  6,434  1,248  6,527  7,351 
Net operating revenues 37,266  31,856  35,410  41,863  44,294 
Profitability Ratio
Net profit margin1 23.94% 20.20% 3.52% 15.59% 16.60%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted consolidated net income2 8,652  4,295  913  4,751  3,027 
Net operating revenues 37,266  31,856  35,410  41,863  44,294 
Profitability Ratio
Adjusted net profit margin3 23.22% 13.48% 2.58% 11.35% 6.83%

Based on: 10-K (filing date: 2020-02-24), 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).

1 2019 Calculation
Net profit margin = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Net operating revenues
= 100 × 8,920 ÷ 37,266 = 23.94%

2 Adjusted consolidated net income. See details »

3 2019 Calculation
Adjusted net profit margin = 100 × Adjusted consolidated net income ÷ Net operating revenues
= 100 × 8,652 ÷ 37,266 = 23.22%

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.’s adjusted net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net income attributable to shareowners of The Coca-Cola Company 8,920  6,434  1,248  6,527  7,351 
Equity attributable to shareowners of The Coca-Cola Company 18,981  16,981  17,072  23,062  25,554 
Profitability Ratio
ROE1 46.99% 37.89% 7.31% 28.30% 28.77%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted consolidated net income2 8,652  4,295  913  4,751  3,027 
Adjusted total equity3 21,494  18,813  21,645  27,725  31,039 
Profitability Ratio
Adjusted ROE4 40.25% 22.83% 4.22% 17.14% 9.75%

Based on: 10-K (filing date: 2020-02-24), 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).

1 2019 Calculation
ROE = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Equity attributable to shareowners of The Coca-Cola Company
= 100 × 8,920 ÷ 18,981 = 46.99%

2 Adjusted consolidated net income. See details »

3 Adjusted total equity. See details »

4 2019 Calculation
Adjusted ROE = 100 × Adjusted consolidated net income ÷ Adjusted total equity
= 100 × 8,652 ÷ 21,494 = 40.25%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Coca-Cola Co.’s adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net income attributable to shareowners of The Coca-Cola Company 8,920  6,434  1,248  6,527  7,351 
Total assets 86,381  83,216  87,896  87,270  90,093 
Profitability Ratio
ROA1 10.33% 7.73% 1.42% 7.48% 8.16%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted consolidated net income2 8,652  4,295  913  4,751  3,027 
Adjusted total assets3 84,493  81,505  88,553  87,975  90,613 
Profitability Ratio
Adjusted ROA4 10.24% 5.27% 1.03% 5.40% 3.34%

Based on: 10-K (filing date: 2020-02-24), 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).

1 2019 Calculation
ROA = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Total assets
= 100 × 8,920 ÷ 86,381 = 10.33%

2 Adjusted consolidated net income. See details »

3 Adjusted total assets. See details »

4 2019 Calculation
Adjusted ROA = 100 × Adjusted consolidated net income ÷ Adjusted total assets
= 100 × 8,652 ÷ 84,493 = 10.24%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Coca-Cola Co.’s adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.