Microsoft Excel LibreOffice Calc

Liquidity Analysis

Difficulty: Beginner

Liquidity ratios measure the company's ability to meet its short-term obligations.


Ratios (Summary)

Coca-Cola Co., liquidity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Current ratio 1.34 1.28 1.24 1.02 1.13
Quick ratio 0.90 0.98 0.89 0.81 0.90
Cash ratio 0.76 0.84 0.74 0.67 0.73

Based on: 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), 10-K (filing date: 2014-02-27).

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Coca-Cola Co.'s current ratio improved from 2015 to 2016 and from 2016 to 2017.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Coca-Cola Co.'s quick ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Coca-Cola Co.'s cash ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level.

Current Ratio

Coca-Cola Co., current ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Current assets 36,545  34,010  33,395  32,986  31,304 
Current liabilities 27,194  26,532  26,930  32,374  27,811 
Ratio
Current ratio1 1.34 1.28 1.24 1.02 1.13
Benchmarks
Current Ratio, Competitors
PepsiCo Inc. 1.51 1.28 1.31 1.14 1.24
Current Ratio, Sector
Beverages 1.42 1.28 1.27 1.06 1.17
Current Ratio, Industry
Consumer Goods 1.10 1.09 1.16 1.00 1.04

Based on: 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), 10-K (filing date: 2014-02-27).

2017 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 36,545 ÷ 27,194 = 1.34

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Coca-Cola Co.'s current ratio improved from 2015 to 2016 and from 2016 to 2017.

Quick Ratio

Coca-Cola Co., quick ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Cash and cash equivalents 6,006  8,555  7,309  8,958  10,414 
Short-term investments 9,352  9,595  8,322  9,052  6,707 
Marketable securities 5,317  4,051  4,269  3,665  3,147 
Trade accounts receivable, less allowances 3,667  3,856  3,941  4,466  4,873 
Total quick assets 24,342  26,057  23,841  26,141  25,141 
Current liabilities 27,194  26,532  26,930  32,374  27,811 
Ratio
Quick ratio1 0.90 0.98 0.89 0.81 0.90
Benchmarks
Quick Ratio, Competitors
PepsiCo Inc. 1.29 1.08 1.05 0.85 0.93
Quick Ratio, Sector
Beverages 1.07 1.03 0.95 0.82 0.92
Quick Ratio, Industry
Consumer Goods 0.83 0.81 0.82 0.66 0.69

Based on: 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), 10-K (filing date: 2014-02-27).

2017 Calculations

1 Quick ratio = Total quick assets ÷ Current liabilities
= 24,342 ÷ 27,194 = 0.90

Ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Coca-Cola Co.'s quick ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level.

Cash Ratio

Coca-Cola Co., cash ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Cash and cash equivalents 6,006  8,555  7,309  8,958  10,414 
Short-term investments 9,352  9,595  8,322  9,052  6,707 
Marketable securities 5,317  4,051  4,269  3,665  3,147 
Total cash assets 20,675  22,201  19,900  21,675  20,268 
Current liabilities 27,194  26,532  26,930  32,374  27,811 
Ratio
Cash ratio1 0.76 0.84 0.74 0.67 0.73
Benchmarks
Cash Ratio, Competitors
PepsiCo Inc. 0.95 0.76 0.68 0.48 0.54
Cash Ratio, Sector
Beverages 0.84 0.80 0.72 0.60 0.66
Cash Ratio, Industry
Consumer Goods 0.60 0.58 0.58 0.40 0.44

Based on: 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), 10-K (filing date: 2014-02-27).

2017 Calculations

1 Cash ratio = Total cash assets ÷ Current liabilities
= 20,675 ÷ 27,194 = 0.76

Ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Coca-Cola Co.'s cash ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level.