Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Coca-Cola Co., liquidity ratios
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.13 | 1.32 | 0.76 | 1.05 | 1.34 | |
| Quick ratio | 0.81 | 0.96 | 0.56 | 0.66 | 0.90 | |
| Cash ratio | 0.63 | 0.75 | 0.41 | 0.55 | 0.76 |
Based on: 10-K (reporting date: 2021-12-31), 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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Coca-Cola Co. current ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Coca-Cola Co. quick ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Coca-Cola Co. cash ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
Current Ratio
Coca-Cola Co., current ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 22,545 | 19,240 | 20,411 | 30,634 | 36,545 | |
| Current liabilities | 19,950 | 14,601 | 26,973 | 29,223 | 27,194 | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.13 | 1.32 | 0.76 | 1.05 | 1.34 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Altria Group Inc. | 0.71 | 0.79 | 0.59 | 0.20 | 0.64 | |
| Mondelēz International Inc. | 0.74 | 0.66 | 0.50 | 0.45 | 0.48 | |
| PepsiCo Inc. | 0.83 | 0.98 | 0.86 | 0.99 | 1.51 | |
| Philip Morris International Inc. | 0.92 | 1.10 | 1.09 | 1.13 | 1.35 | |
| Current Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 0.89 | 0.99 | 0.79 | 0.79 | 1.17 | |
| Current Ratio, Industry | ||||||
| Consumer Staples | 0.93 | 0.93 | 0.83 | 0.82 | 1.02 | |
Based on: 10-K (reporting date: 2021-12-31), 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).
1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 22,545 ÷ 19,950 = 1.13
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Coca-Cola Co. current ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
Quick Ratio
Coca-Cola Co., quick ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 9,684 | 6,795 | 6,480 | 8,926 | 6,006 | |
| Short-term investments | 1,242 | 1,771 | 1,467 | 2,025 | 9,352 | |
| Marketable securities | 1,699 | 2,348 | 3,228 | 5,013 | 5,317 | |
| Trade accounts receivable, less allowances | 3,512 | 3,144 | 3,971 | 3,396 | 3,667 | |
| Total quick assets | 16,137 | 14,058 | 15,146 | 19,360 | 24,342 | |
| Current liabilities | 19,950 | 14,601 | 26,973 | 29,223 | 27,194 | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.81 | 0.96 | 0.56 | 0.66 | 0.90 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Altria Group Inc. | 0.54 | 0.56 | 0.28 | 0.07 | 0.21 | |
| Mondelēz International Inc. | 0.48 | 0.43 | 0.28 | 0.25 | 0.27 | |
| PepsiCo Inc. | 0.56 | 0.77 | 0.66 | 0.82 | 1.29 | |
| Philip Morris International Inc. | 0.44 | 0.56 | 0.56 | 0.59 | 0.76 | |
| Quick Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 0.57 | 0.67 | 0.51 | 0.50 | 0.80 | |
| Quick Ratio, Industry | ||||||
| Consumer Staples | 0.45 | 0.50 | 0.41 | 0.41 | 0.55 | |
Based on: 10-K (reporting date: 2021-12-31), 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).
1 2021 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 16,137 ÷ 19,950 = 0.81
2 Click competitor name to see calculations.
| Liquidity 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. quick ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
Cash Ratio
Coca-Cola Co., cash ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 9,684 | 6,795 | 6,480 | 8,926 | 6,006 | |
| Short-term investments | 1,242 | 1,771 | 1,467 | 2,025 | 9,352 | |
| Marketable securities | 1,699 | 2,348 | 3,228 | 5,013 | 5,317 | |
| Total cash assets | 12,625 | 10,914 | 11,175 | 15,964 | 20,675 | |
| Current liabilities | 19,950 | 14,601 | 26,973 | 29,223 | 27,194 | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.63 | 0.75 | 0.41 | 0.55 | 0.76 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Altria Group Inc. | 0.53 | 0.55 | 0.26 | 0.06 | 0.18 | |
| Mondelēz International Inc. | 0.25 | 0.24 | 0.08 | 0.07 | 0.05 | |
| PepsiCo Inc. | 0.23 | 0.41 | 0.28 | 0.50 | 0.95 | |
| Philip Morris International Inc. | 0.23 | 0.37 | 0.36 | 0.38 | 0.53 | |
| Cash Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 0.35 | 0.44 | 0.30 | 0.34 | 0.59 | |
| Cash Ratio, Industry | ||||||
| Consumer Staples | 0.31 | 0.36 | 0.26 | 0.27 | 0.39 | |
Based on: 10-K (reporting date: 2021-12-31), 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).
1 2021 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 12,625 ÷ 19,950 = 0.63
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Coca-Cola Co. cash ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |