Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Coca-Cola Co., liquidity ratios (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-26), 10-Q (reporting date: 2025-06-27), 10-Q (reporting date: 2025-03-28), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-27), 10-Q (reporting date: 2024-06-28), 10-Q (reporting date: 2024-03-29), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-29), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-07-01), 10-Q (reporting date: 2022-04-01).
The liquidity position, as indicated by the observed ratios, exhibits both stability and fluctuation over the analyzed period. Generally, the ratios demonstrate a moderate level of liquidity, though a discernible trend emerges towards the end of the observation window.
- Current Ratio
- The current ratio remained relatively stable between 1.13 and 1.18 from April 2022 through September 2023. A gradual decline is then observed, reaching a low of 1.03 by December 2024. Subsequently, the ratio experiences a recovery, increasing to 1.46 by December 2025. This suggests a potential weakening in short-term asset coverage of current liabilities followed by a strengthening in the latter part of the period.
- Quick Ratio
- The quick ratio follows a similar pattern to the current ratio, fluctuating between 0.72 and 0.88. It begins at 0.80 in April 2022 and generally remains within a narrow range until December 2024, when it dips to 0.72. A consistent upward trend is then apparent, culminating in a ratio of 0.89 by December 2025. This indicates a similar pattern of change in the ability to meet short-term obligations with the most liquid assets.
- Cash Ratio
- The cash ratio demonstrates the most consistent upward trend of the three ratios. Starting at 0.55 in April 2022, it gradually increases to 0.74 by December 2025. While remaining the lowest of the three ratios throughout the period, the consistent increase suggests a growing proportion of current assets held as cash, potentially indicating a more conservative liquidity management strategy or anticipation of future obligations.
Overall, the observed liquidity ratios suggest a company that maintained a reasonable short-term solvency position for most of the analyzed period. The recent trends, particularly the increase in the cash ratio and the recovery in the current and quick ratios towards the end of the period, may indicate proactive measures taken to bolster liquidity or a shift in asset allocation.
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Current Ratio
Coca-Cola Co., current ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 26, 2025 | Jun 27, 2025 | Mar 28, 2025 | Dec 31, 2024 | Sep 27, 2024 | Jun 28, 2024 | Mar 29, 2024 | Dec 31, 2023 | Sep 29, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jul 1, 2022 | Apr 1, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Current assets | 31,044) | 27,247) | 26,609) | 26,178) | 25,997) | 30,288) | 31,599) | 29,462) | 26,732) | 27,867) | 27,591) | 26,880) | 22,591) | 24,139) | 23,141) | 22,156) | |||||
| Current liabilities | 21,281) | 22,499) | 21,944) | 23,808) | 25,249) | 28,569) | 29,263) | 28,356) | 23,571) | 24,409) | 24,115) | 23,357) | 19,724) | 21,439) | 20,531) | 18,787) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Current ratio1 | 1.46 | 1.21 | 1.21 | 1.10 | 1.03 | 1.06 | 1.08 | 1.04 | 1.13 | 1.14 | 1.14 | 1.15 | 1.15 | 1.13 | 1.13 | 1.18 | |||||
| Benchmarks | |||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||
| Mondelēz International Inc. | 0.59 | 0.61 | 0.64 | 0.61 | 0.68 | 0.63 | 0.68 | 0.77 | 0.62 | 0.61 | 0.65 | 0.68 | 0.60 | 0.69 | 0.68 | 0.68 | |||||
| PepsiCo Inc. | 0.85 | 0.91 | 0.78 | 0.83 | 0.82 | 0.89 | 0.83 | 0.86 | 0.85 | 0.88 | 0.84 | 0.87 | 0.80 | 0.92 | 0.83 | 0.87 | |||||
| Philip Morris International Inc. | 0.96 | 0.85 | 0.83 | 0.79 | 0.88 | 0.89 | 0.94 | 0.94 | 0.75 | 0.89 | 0.85 | 0.85 | 0.72 | 0.92 | 0.89 | 0.92 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-26), 10-Q (reporting date: 2025-06-27), 10-Q (reporting date: 2025-03-28), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-27), 10-Q (reporting date: 2024-06-28), 10-Q (reporting date: 2024-03-29), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-29), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-07-01), 10-Q (reporting date: 2022-04-01).
1 Q4 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 31,044 ÷ 21,281 = 1.46
2 Click competitor name to see calculations.
The current ratio exhibited a generally stable pattern over the observed period, with fluctuations indicating shifts in the company’s short-term asset and liability management. Initially, the ratio demonstrated a slight decline from 1.18 in April 2022 to 1.13 in July 2022, maintaining that level through September 2022. A modest increase to 1.15 was noted at the end of 2022, followed by a similar value in March 2023. The ratio remained relatively consistent through the first half of 2023, before beginning a downward trend.
- Overall Trend
- From September 2023 through December 2024, the current ratio experienced a consistent decline, reaching a low of 1.03. However, a significant upward reversal began in March 2025, with the ratio increasing to 1.21 by June 2025 and continuing to climb to 1.46 by December 2025. This suggests a substantial improvement in the company’s ability to cover its short-term obligations as of the end of the analyzed period.
- Short-Term Fluctuations
- Quarterly variations within the broader trends suggest potential seasonal or operational factors influencing the ratio. For example, the slight increase at the end of 2022 could be attributed to strategic asset allocation or liability management practices. The more pronounced increase in the latter half of 2025 indicates a deliberate or reactive shift in the composition of current assets and liabilities.
The observed decline in the current ratio from late 2023 through early 2024 warrants attention, as a ratio consistently below 1.0 could indicate potential liquidity concerns. However, the subsequent and substantial recovery in 2025 suggests successful mitigation of those concerns and a strengthening of the company’s short-term financial position. The increase in the ratio to 1.46 by the end of 2025 represents a comfortable margin of liquidity.
- Asset and Liability Dynamics
- The movement of the current ratio is directly linked to the changes in both current assets and current liabilities. While a detailed analysis of these components is beyond the scope of this review, the observed trends suggest that the recent improvement in the current ratio is likely driven by a combination of increased current assets and/or a reduction in current liabilities.
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Quick Ratio
Coca-Cola Co., quick ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 26, 2025 | Jun 27, 2025 | Mar 28, 2025 | Dec 31, 2024 | Sep 27, 2024 | Jun 28, 2024 | Mar 29, 2024 | Dec 31, 2023 | Sep 29, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jul 1, 2022 | Apr 1, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cash and cash equivalents | 10,270) | 12,732) | 9,590) | 8,417) | 10,828) | 13,938) | 13,708) | 10,443) | 9,366) | 11,883) | 12,564) | 12,004) | 9,519) | 10,127) | 8,976) | 7,681) | |||||
| Short-term investments | 3,602) | 1,142) | 2,658) | 3,579) | 2,020) | 2,439) | 3,691) | 4,760) | 2,997) | 2,332) | 1,867) | 1,166) | 1,043) | 1,120) | 776) | 736) | |||||
| Marketable securities | 1,934) | 1,907) | 2,049) | 1,791) | 1,723) | 1,787) | 1,594) | 1,716) | 1,300) | 1,220) | 1,263) | 1,125) | 1,069) | 1,973) | 1,867) | 1,939) | |||||
| Trade accounts receivable, less allowances | 3,038) | 3,946) | 4,168) | 4,091) | 3,569) | 4,233) | 4,545) | 4,244) | 3,410) | 3,495) | 3,970) | 4,599) | 3,487) | 3,994) | 4,494) | 4,641) | |||||
| Total quick assets | 18,844) | 19,727) | 18,465) | 17,878) | 18,140) | 22,397) | 23,538) | 21,163) | 17,073) | 18,930) | 19,664) | 18,894) | 15,118) | 17,214) | 16,113) | 14,997) | |||||
| Current liabilities | 21,281) | 22,499) | 21,944) | 23,808) | 25,249) | 28,569) | 29,263) | 28,356) | 23,571) | 24,409) | 24,115) | 23,357) | 19,724) | 21,439) | 20,531) | 18,787) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Quick ratio1 | 0.89 | 0.88 | 0.84 | 0.75 | 0.72 | 0.78 | 0.80 | 0.75 | 0.72 | 0.78 | 0.82 | 0.81 | 0.77 | 0.80 | 0.78 | 0.80 | |||||
| Benchmarks | |||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||
| Mondelēz International Inc. | 0.28 | 0.26 | 0.25 | 0.28 | 0.27 | 0.25 | 0.20 | 0.21 | 0.29 | 0.27 | 0.25 | 0.29 | 0.30 | 0.35 | 0.32 | 0.35 | |||||
| PepsiCo Inc. | 0.64 | 0.68 | 0.56 | 0.62 | 0.62 | 0.66 | 0.60 | 0.64 | 0.66 | 0.68 | 0.60 | 0.61 | 0.58 | 0.68 | 0.59 | 0.63 | |||||
| Philip Morris International Inc. | 0.42 | 0.37 | 0.36 | 0.36 | 0.39 | 0.40 | 0.44 | 0.41 | 0.28 | 0.36 | 0.37 | 0.31 | 0.29 | 0.48 | 0.47 | 0.44 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-26), 10-Q (reporting date: 2025-06-27), 10-Q (reporting date: 2025-03-28), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-27), 10-Q (reporting date: 2024-06-28), 10-Q (reporting date: 2024-03-29), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-29), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-07-01), 10-Q (reporting date: 2022-04-01).
1 Q4 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 18,844 ÷ 21,281 = 0.89
2 Click competitor name to see calculations.
The quick ratio exhibits fluctuations over the observed period, generally remaining below one but demonstrating an overall upward trend towards the end of the analyzed timeframe. Initial values indicate a moderate ability to meet short-term obligations with highly liquid assets. Subsequent periods reveal variations influenced by changes in both quick assets and current liabilities.
- Overall Trend
- From April 2022 through December 2022, the quick ratio remained relatively stable, fluctuating between 0.72 and 0.81. A slight decline was observed in the final quarter of 2022. The ratio then began a more pronounced upward trajectory starting in March 2023, peaking at 0.89 in December 2025. This suggests an improving capacity to cover immediate liabilities with readily available assets.
- Short-Term Fluctuations
- A dip to 0.72 was recorded in December 2022, coinciding with a decrease in total quick assets and a relatively stable level of current liabilities. Conversely, increases in the quick ratio, such as those seen between March 2023 and June 2023, correlate with increases in quick assets outpacing increases in current liabilities. The period between September 2023 and December 2023 shows a notable decrease in the quick ratio, driven by a larger decrease in quick assets than in current liabilities.
- Recent Performance
- The most recent quarters demonstrate a strengthening liquidity position. The quick ratio increased from 0.75 in March 2024 to 0.89 in December 2025. This improvement is attributable to a combination of growth in quick assets and a stabilization, and eventual decrease, in current liabilities. The quick assets grew from US$21,163 million to US$18,844 million, while current liabilities decreased from US$28,356 million to US$21,281 million over the same period.
- Comparative Analysis of Components
- Total quick assets generally increased over the period, with some quarterly declines. Current liabilities exhibited a more consistent upward trend until March 2024, after which they began to decrease. The interplay between these two components is the primary driver of the observed fluctuations in the quick ratio. Periods of increasing quick assets and stable or decreasing current liabilities resulted in improvements in the ratio, while the opposite scenario led to declines.
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Cash Ratio
Coca-Cola Co., cash ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 26, 2025 | Jun 27, 2025 | Mar 28, 2025 | Dec 31, 2024 | Sep 27, 2024 | Jun 28, 2024 | Mar 29, 2024 | Dec 31, 2023 | Sep 29, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jul 1, 2022 | Apr 1, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cash and cash equivalents | 10,270) | 12,732) | 9,590) | 8,417) | 10,828) | 13,938) | 13,708) | 10,443) | 9,366) | 11,883) | 12,564) | 12,004) | 9,519) | 10,127) | 8,976) | 7,681) | |||||
| Short-term investments | 3,602) | 1,142) | 2,658) | 3,579) | 2,020) | 2,439) | 3,691) | 4,760) | 2,997) | 2,332) | 1,867) | 1,166) | 1,043) | 1,120) | 776) | 736) | |||||
| Marketable securities | 1,934) | 1,907) | 2,049) | 1,791) | 1,723) | 1,787) | 1,594) | 1,716) | 1,300) | 1,220) | 1,263) | 1,125) | 1,069) | 1,973) | 1,867) | 1,939) | |||||
| Total cash assets | 15,806) | 15,781) | 14,297) | 13,787) | 14,571) | 18,164) | 18,993) | 16,919) | 13,663) | 15,435) | 15,694) | 14,295) | 11,631) | 13,220) | 11,619) | 10,356) | |||||
| Current liabilities | 21,281) | 22,499) | 21,944) | 23,808) | 25,249) | 28,569) | 29,263) | 28,356) | 23,571) | 24,409) | 24,115) | 23,357) | 19,724) | 21,439) | 20,531) | 18,787) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Cash ratio1 | 0.74 | 0.70 | 0.65 | 0.58 | 0.58 | 0.64 | 0.65 | 0.60 | 0.58 | 0.63 | 0.65 | 0.61 | 0.59 | 0.62 | 0.57 | 0.55 | |||||
| Benchmarks | |||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||
| Mondelēz International Inc. | 0.10 | 0.06 | 0.08 | 0.07 | 0.07 | 0.07 | 0.06 | 0.05 | 0.10 | 0.09 | 0.08 | 0.10 | 0.11 | 0.15 | 0.14 | 0.14 | |||||
| PepsiCo Inc. | 0.29 | 0.27 | 0.22 | 0.27 | 0.29 | 0.27 | 0.21 | 0.28 | 0.32 | 0.31 | 0.22 | 0.20 | 0.20 | 0.26 | 0.21 | 0.27 | |||||
| Philip Morris International Inc. | 0.19 | 0.15 | 0.15 | 0.16 | 0.18 | 0.18 | 0.21 | 0.18 | 0.12 | 0.14 | 0.15 | 0.11 | 0.12 | 0.26 | 0.25 | 0.23 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-26), 10-Q (reporting date: 2025-06-27), 10-Q (reporting date: 2025-03-28), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-27), 10-Q (reporting date: 2024-06-28), 10-Q (reporting date: 2024-03-29), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-29), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-07-01), 10-Q (reporting date: 2022-04-01).
1 Q4 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 15,806 ÷ 21,281 = 0.74
2 Click competitor name to see calculations.
The cash ratio exhibits a generally stable pattern with moderate fluctuations over the observed period. Initially, the ratio demonstrates an incremental increase from 0.55 in April 2022 to 0.62 in September 2022, suggesting a strengthening short-term liquidity position. A slight decrease to 0.58 is then observed by December 2022, followed by a rise to 0.65 in June 2023, indicating renewed improvement in the ability to meet immediate obligations with available cash.
- Overall Trend
- The cash ratio generally remains within a range of 0.55 to 0.74 throughout the analyzed timeframe. While not consistently increasing, the ratio does demonstrate a tendency towards improvement in the later periods, peaking at 0.74 in December 2025. This suggests a strengthening capacity to cover current liabilities with cash and cash equivalents.
- Fluctuations and Potential Drivers
- A noticeable dip to 0.58 occurred in December 2022 and again in December 2024, coinciding with periods where total cash assets experienced relative declines. Conversely, increases in the ratio, such as those seen in June 2023 and December 2025, align with increases in total cash assets. The ratio’s movement appears directly correlated with changes in the level of cash holdings.
- Recent Performance
- The most recent quarters show a consistent cash ratio above 0.60, culminating in 0.74 in December 2025. This represents the highest value observed during the analyzed period. The upward trend in the latter part of the period suggests improved liquidity management or a strategic build-up of cash reserves.
Current liabilities have generally increased over the period, but the cash ratio has largely kept pace, indicating that cash assets have been managed effectively to maintain a reasonable level of short-term solvency. The observed fluctuations warrant further investigation into the underlying factors driving changes in both cash holdings and current liabilities.
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