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Coca-Cola Co. (NYSE:KO)


Analysis of Solvency Ratios
Quarterly Data

Beginner level

Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.


Solvency Ratios (Summary)

Coca-Cola Co., solvency ratios (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 27, 2020 Dec 31, 2019 Sep 27, 2019 Jun 28, 2019 Mar 29, 2019 Dec 31, 2018 Sep 28, 2018 Jun 29, 2018 Mar 30, 2018 Dec 31, 2017 Sep 29, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jul 1, 2016 Apr 1, 2016 Dec 31, 2015 Oct 2, 2015 Jul 3, 2015 Apr 3, 2015
Debt Ratios
Debt to equity 2.78 2.25 2.27 2.48 2.50 2.56 2.45 2.55 2.50 2.79 2.22 2.26 2.07 1.98 1.81 1.80 1.88 1.73 1.77 1.56 1.47
Debt to capital 0.74 0.69 0.69 0.71 0.71 0.72 0.71 0.72 0.71 0.74 0.69 0.69 0.67 0.66 0.64 0.64 0.65 0.63 0.64 0.61 0.60
Debt to assets 0.54 0.50 0.49 0.50 0.50 0.52 0.52 0.52 0.52 0.54 0.54 0.54 0.52 0.52 0.50 0.51 0.51 0.49 0.50 0.47 0.47
Financial leverage 5.18 4.55 4.67 4.95 4.98 4.90 4.76 4.89 4.76 5.15 4.09 4.14 3.99 3.78 3.60 3.53 3.66 3.53 3.57 3.29 3.16
Coverage Ratios
Interest coverage 13.94 12.40 10.60 10.59 10.36 10.09 10.58 9.24 9.04 9.02 8.19 8.12 10.88 12.10 15.58 17.19 18.31 12.22

Based on: 10-Q (filing date: 2020-04-24), 10-K (filing date: 2020-02-24), 10-Q (filing date: 2019-10-24), 10-Q (filing date: 2019-07-25), 10-Q (filing date: 2019-04-25), 10-K (filing date: 2019-02-21), 10-Q (filing date: 2018-10-30), 10-Q (filing date: 2018-07-26), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-07-27), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-24), 10-Q (filing date: 2016-10-27), 10-Q (filing date: 2016-07-28), 10-Q (filing date: 2016-04-28), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-30).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Coca-Cola Co.’s debt to equity ratio improved from Q3 2019 to Q4 2019 but then deteriorated significantly from Q4 2019 to Q1 2020.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Coca-Cola Co.’s debt to capital ratio improved from Q3 2019 to Q4 2019 but then deteriorated significantly from Q4 2019 to Q1 2020.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Coca-Cola Co.’s debt to assets ratio deteriorated from Q3 2019 to Q4 2019 and from Q4 2019 to Q1 2020.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Coca-Cola Co.’s financial leverage ratio decreased from Q3 2019 to Q4 2019 but then increased from Q4 2019 to Q1 2020 exceeding Q3 2019 level.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Coca-Cola Co.’s interest coverage ratio improved from Q3 2019 to Q4 2019 and from Q4 2019 to Q1 2020.

Debt to Equity

Coca-Cola Co., debt to equity calculation (quarterly data)

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Mar 27, 2020 Dec 31, 2019 Sep 27, 2019 Jun 28, 2019 Mar 29, 2019 Dec 31, 2018 Sep 28, 2018 Jun 29, 2018 Mar 30, 2018 Dec 31, 2017 Sep 29, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jul 1, 2016 Apr 1, 2016 Dec 31, 2015 Oct 2, 2015 Jul 3, 2015 Apr 3, 2015
Selected Financial Data (US$ in millions)
Loans and notes payable 13,657  10,994  10,972  13,030  11,570  13,194  12,973  14,715  14,785  13,205  13,398  14,355  13,726  12,498  12,088  13,901  14,888  13,129  17,545  16,306  14,383 
Current maturities of long-term debt 5,642  4,253  492  2,749  3,297  4,997  6,341  4,023  4,370  3,298  3,231  3,478  2,185  3,527  3,473  4,895  4,956  2,677  2,692  2,031  2,040 
Long-term debt, excluding current maturities 31,094  27,516  31,012  29,296  29,400  25,364  25,523  28,063  29,792  31,182  32,471  31,805  31,538  29,684  31,663  29,252  26,990  28,407  25,949  25,977  26,087 
Total debt 50,393  42,763  42,476  45,075  44,267  43,555  44,837  46,801  48,947  47,685  49,100  49,638  47,449  45,709  47,224  48,048  46,834  44,213  46,186  44,314  42,510 
 
Equity attributable to shareowners of The Coca-Cola Company 18,158  18,981  18,713  18,181  17,735  16,981  18,264  18,323  19,610  17,072  22,119  22,001  22,876  23,062  26,076  26,637  24,914  25,554  26,049  28,418  28,837 
Solvency Ratio
Debt to equity1 2.78 2.25 2.27 2.48 2.50 2.56 2.45 2.55 2.50 2.79 2.22 2.26 2.07 1.98 1.81 1.80 1.88 1.73 1.77 1.56 1.47
Benchmarks
Debt to Equity, Competitors2
PepsiCo Inc. 3.06 2.17 2.30 2.24 2.24 2.23 3.41 4.01 4.00 3.61 2.95 3.18 3.34 3.33 2.83 2.91 3.16 2.79 2.37 1.93 1.91

Based on: 10-Q (filing date: 2020-04-24), 10-K (filing date: 2020-02-24), 10-Q (filing date: 2019-10-24), 10-Q (filing date: 2019-07-25), 10-Q (filing date: 2019-04-25), 10-K (filing date: 2019-02-21), 10-Q (filing date: 2018-10-30), 10-Q (filing date: 2018-07-26), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-07-27), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-24), 10-Q (filing date: 2016-10-27), 10-Q (filing date: 2016-07-28), 10-Q (filing date: 2016-04-28), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-30).

1 Q1 2020 Calculation
Debt to equity = Total debt ÷ Equity attributable to shareowners of The Coca-Cola Company
= 50,393 ÷ 18,158 = 2.78

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Coca-Cola Co.’s debt to equity ratio improved from Q3 2019 to Q4 2019 but then deteriorated significantly from Q4 2019 to Q1 2020.

Debt to Capital

Coca-Cola Co., debt to capital calculation (quarterly data)

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Mar 27, 2020 Dec 31, 2019 Sep 27, 2019 Jun 28, 2019 Mar 29, 2019 Dec 31, 2018 Sep 28, 2018 Jun 29, 2018 Mar 30, 2018 Dec 31, 2017 Sep 29, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jul 1, 2016 Apr 1, 2016 Dec 31, 2015 Oct 2, 2015 Jul 3, 2015 Apr 3, 2015
Selected Financial Data (US$ in millions)
Loans and notes payable 13,657  10,994  10,972  13,030  11,570  13,194  12,973  14,715  14,785  13,205  13,398  14,355  13,726  12,498  12,088  13,901  14,888  13,129  17,545  16,306  14,383 
Current maturities of long-term debt 5,642  4,253  492  2,749  3,297  4,997  6,341  4,023  4,370  3,298  3,231  3,478  2,185  3,527  3,473  4,895  4,956  2,677  2,692  2,031  2,040 
Long-term debt, excluding current maturities 31,094  27,516  31,012  29,296  29,400  25,364  25,523  28,063  29,792  31,182  32,471  31,805  31,538  29,684  31,663  29,252  26,990  28,407  25,949  25,977  26,087 
Total debt 50,393  42,763  42,476  45,075  44,267  43,555  44,837  46,801  48,947  47,685  49,100  49,638  47,449  45,709  47,224  48,048  46,834  44,213  46,186  44,314  42,510 
Equity attributable to shareowners of The Coca-Cola Company 18,158  18,981  18,713  18,181  17,735  16,981  18,264  18,323  19,610  17,072  22,119  22,001  22,876  23,062  26,076  26,637  24,914  25,554  26,049  28,418  28,837 
Total capital 68,551  61,744  61,189  63,256  62,002  60,536  63,101  65,124  68,557  64,757  71,219  71,639  70,325  68,771  73,300  74,685  71,748  69,767  72,235  72,732  71,347 
Solvency Ratio
Debt to capital1 0.74 0.69 0.69 0.71 0.71 0.72 0.71 0.72 0.71 0.74 0.69 0.69 0.67 0.66 0.64 0.64 0.65 0.63 0.64 0.61 0.60
Benchmarks
Debt to Capital, Competitors2
PepsiCo Inc. 0.75 0.68 0.70 0.69 0.69 0.69 0.77 0.80 0.80 0.78 0.75 0.76 0.77 0.77 0.74 0.74 0.76 0.74 0.70 0.66 0.66

Based on: 10-Q (filing date: 2020-04-24), 10-K (filing date: 2020-02-24), 10-Q (filing date: 2019-10-24), 10-Q (filing date: 2019-07-25), 10-Q (filing date: 2019-04-25), 10-K (filing date: 2019-02-21), 10-Q (filing date: 2018-10-30), 10-Q (filing date: 2018-07-26), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-07-27), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-24), 10-Q (filing date: 2016-10-27), 10-Q (filing date: 2016-07-28), 10-Q (filing date: 2016-04-28), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-30).

1 Q1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 50,393 ÷ 68,551 = 0.74

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Coca-Cola Co.’s debt to capital ratio improved from Q3 2019 to Q4 2019 but then deteriorated significantly from Q4 2019 to Q1 2020.

Debt to Assets

Coca-Cola Co., debt to assets calculation (quarterly data)

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Mar 27, 2020 Dec 31, 2019 Sep 27, 2019 Jun 28, 2019 Mar 29, 2019 Dec 31, 2018 Sep 28, 2018 Jun 29, 2018 Mar 30, 2018 Dec 31, 2017 Sep 29, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jul 1, 2016 Apr 1, 2016 Dec 31, 2015 Oct 2, 2015 Jul 3, 2015 Apr 3, 2015
Selected Financial Data (US$ in millions)
Loans and notes payable 13,657  10,994  10,972  13,030  11,570  13,194  12,973  14,715  14,785  13,205  13,398  14,355  13,726  12,498  12,088  13,901  14,888  13,129  17,545  16,306  14,383 
Current maturities of long-term debt 5,642  4,253  492  2,749  3,297  4,997  6,341  4,023  4,370  3,298  3,231  3,478  2,185  3,527  3,473  4,895  4,956  2,677  2,692  2,031  2,040 
Long-term debt, excluding current maturities 31,094  27,516  31,012  29,296  29,400  25,364  25,523  28,063  29,792  31,182  32,471  31,805  31,538  29,684  31,663  29,252  26,990  28,407  25,949  25,977  26,087 
Total debt 50,393  42,763  42,476  45,075  44,267  43,555  44,837  46,801  48,947  47,685  49,100  49,638  47,449  45,709  47,224  48,048  46,834  44,213  46,186  44,314  42,510 
 
Total assets 94,013  86,381  87,433  89,996  88,347  83,216  86,877  89,593  93,282  87,896  90,515  91,146  91,201  87,270  93,927  94,094  91,263  90,093  93,008  93,538  91,016 
Solvency Ratio
Debt to assets1 0.54 0.50 0.49 0.50 0.50 0.52 0.52 0.52 0.52 0.54 0.54 0.54 0.52 0.52 0.50 0.51 0.51 0.49 0.50 0.47 0.47
Benchmarks
Debt to Assets, Competitors2
PepsiCo Inc. 0.48 0.41 0.42 0.42 0.42 0.42 0.48 0.52 0.53 0.49 0.50 0.51 0.52 0.50 0.48 0.49 0.50 0.48 0.46 0.44 0.44

Based on: 10-Q (filing date: 2020-04-24), 10-K (filing date: 2020-02-24), 10-Q (filing date: 2019-10-24), 10-Q (filing date: 2019-07-25), 10-Q (filing date: 2019-04-25), 10-K (filing date: 2019-02-21), 10-Q (filing date: 2018-10-30), 10-Q (filing date: 2018-07-26), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-07-27), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-24), 10-Q (filing date: 2016-10-27), 10-Q (filing date: 2016-07-28), 10-Q (filing date: 2016-04-28), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-30).

1 Q1 2020 Calculation
Debt to assets = Total debt ÷ Total assets
= 50,393 ÷ 94,013 = 0.54

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Coca-Cola Co.’s debt to assets ratio deteriorated from Q3 2019 to Q4 2019 and from Q4 2019 to Q1 2020.

Financial Leverage

Coca-Cola Co., financial leverage calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 27, 2020 Dec 31, 2019 Sep 27, 2019 Jun 28, 2019 Mar 29, 2019 Dec 31, 2018 Sep 28, 2018 Jun 29, 2018 Mar 30, 2018 Dec 31, 2017 Sep 29, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jul 1, 2016 Apr 1, 2016 Dec 31, 2015 Oct 2, 2015 Jul 3, 2015 Apr 3, 2015
Selected Financial Data (US$ in millions)
Total assets 94,013  86,381  87,433  89,996  88,347  83,216  86,877  89,593  93,282  87,896  90,515  91,146  91,201  87,270  93,927  94,094  91,263  90,093  93,008  93,538  91,016 
Equity attributable to shareowners of The Coca-Cola Company 18,158  18,981  18,713  18,181  17,735  16,981  18,264  18,323  19,610  17,072  22,119  22,001  22,876  23,062  26,076  26,637  24,914  25,554  26,049  28,418  28,837 
Solvency Ratio
Financial leverage1 5.18 4.55 4.67 4.95 4.98 4.90 4.76 4.89 4.76 5.15 4.09 4.14 3.99 3.78 3.60 3.53 3.66 3.53 3.57 3.29 3.16
Benchmarks
Financial Leverage, Competitors2
PepsiCo Inc. 6.32 5.31 5.48 5.38 5.31 5.35 7.16 7.79 7.52 7.33 5.90 6.20 6.45 6.68 5.86 5.94 6.30 5.84 5.19 4.42 4.39

Based on: 10-Q (filing date: 2020-04-24), 10-K (filing date: 2020-02-24), 10-Q (filing date: 2019-10-24), 10-Q (filing date: 2019-07-25), 10-Q (filing date: 2019-04-25), 10-K (filing date: 2019-02-21), 10-Q (filing date: 2018-10-30), 10-Q (filing date: 2018-07-26), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-07-27), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-24), 10-Q (filing date: 2016-10-27), 10-Q (filing date: 2016-07-28), 10-Q (filing date: 2016-04-28), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-30).

1 Q1 2020 Calculation
Financial leverage = Total assets ÷ Equity attributable to shareowners of The Coca-Cola Company
= 94,013 ÷ 18,158 = 5.18

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Coca-Cola Co.’s financial leverage ratio decreased from Q3 2019 to Q4 2019 but then increased from Q4 2019 to Q1 2020 exceeding Q3 2019 level.

Interest Coverage

Coca-Cola Co., interest coverage calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Mar 27, 2020 Dec 31, 2019 Sep 27, 2019 Jun 28, 2019 Mar 29, 2019 Dec 31, 2018 Sep 28, 2018 Jun 29, 2018 Mar 30, 2018 Dec 31, 2017 Sep 29, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jul 1, 2016 Apr 1, 2016 Dec 31, 2015 Oct 2, 2015 Jul 3, 2015 Apr 3, 2015
Selected Financial Data (US$ in millions)
Net income attributable to shareowners of The Coca-Cola Company 2,775  2,042  2,593  2,607  1,678  870  1,880  2,316  1,368  (2,752) 1,447  1,371  1,182  550  1,046  3,448  1,483  1,237  1,449  3,108  1,557 
Add: Net income attributable to noncontrolling interest 20  23  (4) 21  25  57  (62) 15  32  35  (3) (3) 12  10  (1)
Less: Income (loss) from discontinued operations, net of income taxes —  —  —  —  —  135  (501) 42  73  101  —  —  —  —  —  —  —  —  —  —  — 
Add: Income tax expense 215  355  503  421  522  (5) 528  594  506  3,755  230  1,252  323  (32) 378  839  401  302  272  1,250  415 
Add: Interest expense 193  235  230  236  245  242  206  241  230  210  208  231  192  248  182  162  141  143  138  128  447 
Earnings before interest and tax (EBIT) 3,203  2,655  3,322  3,285  2,470  1,029  3,053  3,124  2,063  1,147  1,882  2,855  1,699  763  1,610  4,461  2,035  1,681  1,863  4,489  2,428 
Solvency Ratio
Interest coverage1 13.94 12.40 10.60 10.59 10.36 10.09 10.58 9.24 9.04 9.02 8.19 8.12 10.88 12.10 15.58 17.19 18.31 12.22
Benchmarks
Interest Coverage, Competitors2
PepsiCo Inc. 8.91 9.20 7.41 7.25 7.28 7.03 8.55 8.82 8.99 9.34 7.60 7.58 7.59 7.37 9.14 7.96 8.19 8.67

Based on: 10-Q (filing date: 2020-04-24), 10-K (filing date: 2020-02-24), 10-Q (filing date: 2019-10-24), 10-Q (filing date: 2019-07-25), 10-Q (filing date: 2019-04-25), 10-K (filing date: 2019-02-21), 10-Q (filing date: 2018-10-30), 10-Q (filing date: 2018-07-26), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-07-27), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-24), 10-Q (filing date: 2016-10-27), 10-Q (filing date: 2016-07-28), 10-Q (filing date: 2016-04-28), 10-K (filing date: 2016-02-25), 10-Q (filing date: 2015-10-28), 10-Q (filing date: 2015-07-29), 10-Q (filing date: 2015-04-30).

1 Q1 2020 Calculation
Interest coverage = (EBITQ1 2020 + EBITQ4 2019 + EBITQ3 2019 + EBITQ2 2019) ÷ (Interest expenseQ1 2020 + Interest expenseQ4 2019 + Interest expenseQ3 2019 + Interest expenseQ2 2019)
= (3,203 + 2,655 + 3,322 + 3,285) ÷ (193 + 235 + 230 + 236) = 13.94

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Coca-Cola Co.’s interest coverage ratio improved from Q3 2019 to Q4 2019 and from Q4 2019 to Q1 2020.