Coca-Cola Co. (NYSE:KO)

Current Ratio

The current ratio experienced a gradual increase from 0.87 in March 2020 to a peak of 1.52 in October 2021, indicating an improvement in short-term liquidity during this period. Following this peak, the ratio declined sharply to 1.13 by December 2021. From early 2022 through 2025, the current ratio remained relatively stable, fluctuating slightly around a level near 1.1, with a minor downward tendency toward 1.03 in December 2024 before a slight recovery to 1.10 in March 2025. This pattern suggests a normalization and stabilization of the company's ability to meet short-term obligations after the initial improvement phase.

Quick Ratio

The quick ratio showed a similar trend as the current ratio, initially rising from 0.68 in March 2020 to a high of 1.17 in October 2021, reflecting enhanced liquidity excluding inventories. Subsequently, a notable decrease occurred to 0.81 by December 2021. From that point forward, the quick ratio hovered mostly between 0.72 and 0.82, indicating a moderate but consistent capacity to cover short-term liabilities without relying on inventory. The fluctuations within this range suggest stable but relatively conservative liquidity management over the later periods.

Cash Ratio

The cash ratio increased from 0.55 in March 2020 to a maximum of 0.93 in October 2021, showcasing a rising level of cash or cash equivalents relative to current liabilities during that timeframe. This was followed by a sharp decline to 0.63 at the end of 2021. Subsequently, the ratio fluctuated in a narrower band between 0.55 and 0.65 across 2022 to 2025. The minor oscillations within this range indicate a steady but limited reliance on cash reserves for covering short-term debts, reflecting a cautious approach toward cash liquidity.

The quarterly financial data demonstrates notable fluctuations in current assets, current liabilities, and the current ratio over the observed periods.

Current Assets

Current assets exhibit variability with an initial increase from 28,234 million USD in March 2020 to a peak of 30,410 million USD in September 2020, followed by a sharp decline to 19,240 million USD by December 2020. Subsequent quarters show moderate recovery and fluctuations within the 22,000 to 31,000 million USD range. Notably, a rise is observed again towards mid-2024, reaching close to 31,599 million USD in June 2024, before a decline to approximately 26,178 million USD by March 2025.

Current Liabilities

Current liabilities display a significant decrease from 32,397 million USD in March 2020 to 14,601 million USD by December 2020, indicating a substantial reduction in short-term obligations during this period. After this trough, liabilities gradually increase, peaking at 29,263 million USD in June 2024, followed by a moderate decline to 23,808 million USD by March 2025. The overall trend shows an initially steep decrease, succeeded by a steady upward movement and a slight dip at the end of the period.

Current Ratio

The current ratio, a measure of liquidity, improved from a below-par 0.87 in March 2020 to a high of 1.52 in October 2021, signifying enhanced short-term liquidity. This improvement corresponds with the reduction in liabilities and increase in assets seen during the earlier periods. Following this peak, the ratio declines consistently to around 1.03 by December 2024, before a slight recovery to 1.10 in March 2025. Despite fluctuations, the ratio remains close to or just above 1.0 in the latter periods, indicating sufficient but tighter liquidity compared to earlier highs.

Overall, the data indicates a period of initial liquidity strain during early 2020, followed by improved liquidity evidenced by rising current ratios through 2021. The firm managed to maintain current assets at levels comparable to liabilities for most of the examined timeline, although the margin narrowed towards the end of the period reviewed. The pattern of increasing liabilities from 2021 onwards suggests a possible shift in financing or operational activities, necessitating close monitoring to ensure liquidity remains adequate.

Total Quick Assets

The total quick assets exhibited considerable fluctuation over the analyzed periods. Starting at 22,096 million USD in March 2020, there was an upward trend peaking at 24,955 million USD by September 2020, followed by a sharp decline to 14,058 million USD by December 2020. Subsequently, there was a recovery with values rising again until October 2021, after which a general decline with slight fluctuations occurred toward the end of 2023. From early 2024, quick assets showed an increasing trend again, reaching 23,538 million USD by June 2024, but then slightly decreasing in the last recorded quarters ending at 17,878 million USD by March 2025.

Current Liabilities

Current liabilities showed a decreasing pattern early in the period, dropping from 32,397 million USD in March 2020 to 14,601 million USD by December 2020. Afterward, liabilities increased considerably, peaking at 29,263 million USD by June 2024. This was followed by a decrease towards the last quarters of 2024 and early 2025, ending at 23,808 million USD. The overall trend indicates significant volatility, with a notable rise in liabilities after the mid-period low.

Quick Ratio

The quick ratio demonstrated improvement during the first half of the analyzed timeline, increasing from 0.68 in March 2020 to a high of 1.17 by October 2021. However, from late 2021 onwards, the quick ratio declined and stabilized around the 0.75 to 0.80 range, indicating a reduction in short-term liquidity relative to current liabilities. The ratio maintained this moderate level with minor fluctuations through the end of the period in March 2025.

Summary

Overall, the data indicates an initial phase of improving liquidity, supported by growth in quick assets and a declining trend in current liabilities, culminating in a peak quick ratio near 1.17. This was followed by a period marked by declining quick assets and rising current liabilities, resulting in a reduced quick ratio closer to 0.75. The latter periods reflect more restrained liquidity, with current liabilities consistently exceeding quick assets. The patterns suggest ongoing challenges in maintaining strong short-term financial flexibility, particularly in the most recent quarters.

The analysis of the quarterly data reveals distinct trends in the liquidity and short-term financial management over the examined periods.

Total Cash Assets

Total cash assets exhibit a fluctuating pattern with a notable peak in the third quarter of 2020 at 21,128 million US dollars, followed by a sharp decline by the end of 2020 to 10,914 million US dollars. Subsequently, cash assets generally recovered and experienced moderate growth through 2021 and early 2022, reaching a secondary peak around mid-2024 at 18,993 million US dollars. However, the figure decreased again in the last quarters of the dataset, finishing at 13,787 million US dollars in the first quarter of 2025. This pattern suggests variability in cash management possibly related to operational or investment activities.

Current Liabilities

Current liabilities show a declining trend in the first half of 2020, falling from 32,397 million to 14,601 million US dollars by the end of 2020. Starting in 2021, current liabilities generally increased with some volatility, peaking at 29,263 million US dollars in the second quarter of 2024 before trending downward again in the final periods to 23,808 million US dollars. This indicates variations in short-term obligations, potentially reflecting changes in working capital management or short-term financing strategies.

Cash Ratio

The cash ratio, indicating the ability to cover current liabilities with cash assets, was relatively high during mid to late 2020, peaking at 0.93 in the third quarter of 2021. After this peak, the ratio declined and stabilized between 0.55 and 0.65 in the subsequent periods through early 2025. The initial increase reflects improved liquidity coverage early in the analyzed period, whereas the later stabilization at lower levels suggests a consistent but more moderate liquidity buffer relative to current liabilities.

Overall, the data suggest that the company experienced significant liquidity shifts during 2020, likely influenced by broader economic conditions, followed by a period of recovery and stabilization. The fluctuation in cash assets combined with changes in current liabilities resulted in a varying cash ratio, which however remained within a moderate range in more recent periods, indicating maintained but carefully managed short-term liquidity.