Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Coca-Cola Co., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-07-03), 10-Q (reporting date: 2026-04-03), 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 solvency profile exhibits a period of fluctuating leverage between April 2022 and early 2024, followed by a consistent and pronounced deleveraging phase extending through July 2026. While the company maintained a stable capital structure for the first two years, the latter half of the period shows a strategic reduction in debt reliance and an improvement in the capacity to service interest obligations.
- Debt to Equity and Debt to Capital
- A volatile trend is observed in the debt to equity ratio, which peaked at 1.87 in March 2024 before entering a steady decline to 1.20 by July 2026. Similarly, the debt to capital ratio remained relatively stagnant between 0.60 and 0.65 for several quarters, eventually decreasing to 0.55 by the end of the period. These movements indicate a shift toward a more equity-heavy capital structure and a reduction in total debt relative to the company's capital base.
- Debt to Assets and Financial Leverage
- Debt to assets remained largely stable, fluctuating between 0.40 and 0.48, with a peak coinciding with the March 2024 high. Financial leverage followed a similar pattern, reaching a maximum of 4.05 in late 2022 and again in December 2024. However, a significant downward trajectory began in early 2025, with financial leverage dropping to 2.99 by July 2026, suggesting a reduction in the use of borrowed funds to acquire assets.
- Interest Coverage
- The interest coverage ratio demonstrated an inverse relationship with leverage peaks. After an initial high of 17.35 in September 2022, the ratio experienced a prolonged decline, reaching a trough of 8.79 in September 2024. This decline suggests a temporary compression of the margin available to cover interest expenses. Following the initiation of the deleveraging trend in 2025, the ratio recovered steadily, climbing back to 12.00 by July 2026, reflecting an improved solvency position and reduced financial risk.
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Debt Ratios
Coverage Ratios
Debt to Equity
Coca-Cola Co., debt to equity calculation (quarterly data)
| Jul 3, 2026 | Apr 3, 2026 | 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) | ||||||||||||||||||||||||
| Loans and notes payable | 48) | 332) | 1,551) | 2,319) | 4,379) | 5,418) | 1,499) | 2,203) | 3,793) | 6,054) | 4,557) | 3,915) | 4,828) | 5,455) | 2,373) | 3,396) | 4,358) | 3,610) | ||||||
| Current maturities of long-term debt | 6,494) | 4,493) | 1,822) | 1,920) | 91) | 163) | 648) | 1,067) | 1,939) | 1,392) | 1,960) | 2,080) | 1,171) | 811) | 399) | 729) | 788) | 1,039) | ||||||
| Long-term debt, excluding current maturities | 37,001) | 39,065) | 42,119) | 43,177) | 44,976) | 43,530) | 42,375) | 42,994) | 38,085) | 35,104) | 35,547) | 34,176) | 35,626) | 36,134) | 36,377) | 35,462) | 36,755) | 37,052) | ||||||
| Total debt | 43,543) | 43,890) | 45,492) | 47,416) | 49,446) | 49,111) | 44,522) | 46,264) | 43,817) | 42,550) | 42,064) | 40,171) | 41,625) | 42,400) | 39,149) | 39,587) | 41,901) | 41,701) | ||||||
| Equity attributable to shareowners of The Coca-Cola Company | 36,150) | 33,633) | 32,169) | 31,247) | 28,585) | 26,202) | 24,856) | 26,518) | 25,853) | 26,429) | 25,941) | 26,325) | 26,013) | 25,217) | 24,105) | 22,805) | 23,005) | 24,845) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to equity1 | 1.20 | 1.30 | 1.41 | 1.52 | 1.73 | 1.87 | 1.79 | 1.74 | 1.69 | 1.61 | 1.62 | 1.53 | 1.60 | 1.68 | 1.62 | 1.74 | 1.82 | 1.68 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||
| Mondelēz International Inc. | 0.81 | 0.82 | 0.82 | 0.81 | 0.80 | 0.76 | 0.66 | 0.71 | 0.71 | 0.67 | 0.69 | 0.70 | 0.74 | 0.79 | 0.85 | 0.81 | 0.70 | 0.70 | ||||||
| PepsiCo Inc. | 2.41 | 2.47 | 2.41 | 2.62 | 2.79 | 2.64 | 2.46 | 2.31 | 2.31 | 2.41 | 2.38 | 2.38 | 2.47 | 2.45 | 2.28 | 2.07 | 2.12 | 2.20 | ||||||
| Philip Morris International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2026-07-03), 10-Q (reporting date: 2026-04-03), 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 Q2 2026 Calculation
Debt to equity = Total debt ÷ Equity attributable to shareowners of The Coca-Cola Company
= 43,543 ÷ 36,150 = 1.20
2 Click competitor name to see calculations.
The solvency profile between April 2022 and July 2026 is characterized by a period of fluctuating leverage followed by a marked improvement in the overall debt-to-equity position.
- Total Debt Dynamics
- Total debt levels remained relatively stable between $39 billion and $43 billion throughout 2022 and 2023. A period of expansion occurred starting in 2024, with liabilities peaking at $49.4 billion in June 2025. Subsequently, a deleveraging trend emerged, bringing total debt down to $43.5 billion by July 2026.
- Equity Growth
- Equity attributable to shareowners demonstrated a consistent upward trajectory over the observed period. While equity oscillated between $22.8 billion and $26.4 billion during 2022 and 2023, a sustained acceleration began in late 2024, culminating in a period high of $36.15 billion by July 2026.
- Debt to Equity Ratio Analysis
- The debt-to-equity ratio exhibited cyclicality, reaching a peak of 1.87 in March 2025. This peak coincided with the period of highest total debt relative to available equity. Following this point, a sharp and consistent decline is observed, with the ratio falling to 1.20 by July 2026. This trend indicates a significant reduction in financial leverage and an increased reliance on equity financing.
The convergence of decreasing total debt and increasing shareholder equity in the latter half of the period resulted in a substantial improvement in solvency. The transition from a peak ratio of 1.87 to a final ratio of 1.20 suggests a shift toward a more conservative capital structure.
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Debt to Capital
Coca-Cola Co., debt to capital calculation (quarterly data)
| Jul 3, 2026 | Apr 3, 2026 | Dec 31, 2025 | Sep 26, 2025 | Jun 27, 2025 | Mar 28, 2025 | Dec 31, 2024 | Sep 27, 2024 | Jun 28, 2024 | Mar 29, 2024 | Dec 31, 2023 | Sep 29, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jul 1, 2022 | Apr 1, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Loans and notes payable | 48) | 332) | 1,551) | 2,319) | 4,379) | 5,418) | 1,499) | 2,203) | 3,793) | 6,054) | 4,557) | 3,915) | 4,828) | 5,455) | 2,373) | 3,396) | 4,358) | 3,610) | ||||||
| Current maturities of long-term debt | 6,494) | 4,493) | 1,822) | 1,920) | 91) | 163) | 648) | 1,067) | 1,939) | 1,392) | 1,960) | 2,080) | 1,171) | 811) | 399) | 729) | 788) | 1,039) | ||||||
| Long-term debt, excluding current maturities | 37,001) | 39,065) | 42,119) | 43,177) | 44,976) | 43,530) | 42,375) | 42,994) | 38,085) | 35,104) | 35,547) | 34,176) | 35,626) | 36,134) | 36,377) | 35,462) | 36,755) | 37,052) | ||||||
| Total debt | 43,543) | 43,890) | 45,492) | 47,416) | 49,446) | 49,111) | 44,522) | 46,264) | 43,817) | 42,550) | 42,064) | 40,171) | 41,625) | 42,400) | 39,149) | 39,587) | 41,901) | 41,701) | ||||||
| Equity attributable to shareowners of The Coca-Cola Company | 36,150) | 33,633) | 32,169) | 31,247) | 28,585) | 26,202) | 24,856) | 26,518) | 25,853) | 26,429) | 25,941) | 26,325) | 26,013) | 25,217) | 24,105) | 22,805) | 23,005) | 24,845) | ||||||
| Total capital | 79,693) | 77,523) | 77,661) | 78,663) | 78,031) | 75,313) | 69,378) | 72,782) | 69,670) | 68,979) | 68,005) | 66,496) | 67,638) | 67,617) | 63,254) | 62,392) | 64,906) | 66,546) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to capital1 | 0.55 | 0.57 | 0.59 | 0.60 | 0.63 | 0.65 | 0.64 | 0.64 | 0.63 | 0.62 | 0.62 | 0.60 | 0.62 | 0.63 | 0.62 | 0.63 | 0.65 | 0.63 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||
| Mondelēz International Inc. | 0.45 | 0.45 | 0.45 | 0.45 | 0.44 | 0.43 | 0.40 | 0.42 | 0.42 | 0.40 | 0.41 | 0.41 | 0.43 | 0.44 | 0.46 | 0.45 | 0.41 | 0.41 | ||||||
| PepsiCo Inc. | 0.71 | 0.71 | 0.71 | 0.72 | 0.74 | 0.73 | 0.71 | 0.70 | 0.70 | 0.71 | 0.70 | 0.70 | 0.71 | 0.71 | 0.69 | 0.67 | 0.68 | 0.69 | ||||||
| Philip Morris International Inc. | 1.21 | 1.22 | 1.26 | 1.28 | 1.30 | 1.28 | 1.35 | 1.25 | 1.25 | 1.26 | 1.31 | 1.25 | 1.25 | 1.23 | 1.26 | 1.51 | 1.48 | 1.52 | ||||||
Based on: 10-Q (reporting date: 2026-07-03), 10-Q (reporting date: 2026-04-03), 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 Q2 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 43,543 ÷ 79,693 = 0.55
2 Click competitor name to see calculations.
The solvency profile demonstrates a period of relative stability in leverage followed by a marked improvement in the capital structure during the latter part of the observed period. Between April 2022 and December 2024, the debt-to-capital ratio fluctuated within a narrow band, generally ranging between 0.60 and 0.65. However, beginning in early 2025, a consistent downward trend emerged, with the ratio declining from 0.65 in December 2023 to a period low of 0.55 by July 3, 2026.
- Total Debt Dynamics
- Total debt exhibited volatility throughout the period, starting at 41,701 million USD and reaching a peak of 49,446 million USD in June 2025. Following this peak, a systematic reduction in total debt is observed, descending to 43,543 million USD by July 2026, which indicates a strategic deleveraging phase.
- Total Capital Growth
- Total capital shows a sustained long-term upward trajectory. From an initial value of 66,546 million USD in April 2022, the capital base expanded to 79,693 million USD by July 2026. This consistent growth in the total capital base provided a buffer that contributed to the overall reduction in the leverage ratio.
- Debt to Capital Correlation
- The compression of the debt-to-capital ratio in the final six quarters is the result of a dual effect: the simultaneous reduction of total liabilities and the expansion of the total capital base. This shift reflects an increase in the proportion of equity or non-debt capital relative to total funding, thereby improving the overall solvency position of the entity.
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Debt to Assets
Coca-Cola Co., debt to assets calculation (quarterly data)
| Jul 3, 2026 | Apr 3, 2026 | 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) | ||||||||||||||||||||||||
| Loans and notes payable | 48) | 332) | 1,551) | 2,319) | 4,379) | 5,418) | 1,499) | 2,203) | 3,793) | 6,054) | 4,557) | 3,915) | 4,828) | 5,455) | 2,373) | 3,396) | 4,358) | 3,610) | ||||||
| Current maturities of long-term debt | 6,494) | 4,493) | 1,822) | 1,920) | 91) | 163) | 648) | 1,067) | 1,939) | 1,392) | 1,960) | 2,080) | 1,171) | 811) | 399) | 729) | 788) | 1,039) | ||||||
| Long-term debt, excluding current maturities | 37,001) | 39,065) | 42,119) | 43,177) | 44,976) | 43,530) | 42,375) | 42,994) | 38,085) | 35,104) | 35,547) | 34,176) | 35,626) | 36,134) | 36,377) | 35,462) | 36,755) | 37,052) | ||||||
| Total debt | 43,543) | 43,890) | 45,492) | 47,416) | 49,446) | 49,111) | 44,522) | 46,264) | 43,817) | 42,550) | 42,064) | 40,171) | 41,625) | 42,400) | 39,149) | 39,587) | 41,901) | 41,701) | ||||||
| Total assets | 107,922) | 104,217) | 104,816) | 106,045) | 104,333) | 101,716) | 100,549) | 106,266) | 101,202) | 99,392) | 97,703) | 97,578) | 98,456) | 97,404) | 92,763) | 92,471) | 93,169) | 94,064) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to assets1 | 0.40 | 0.42 | 0.43 | 0.45 | 0.47 | 0.48 | 0.44 | 0.44 | 0.43 | 0.43 | 0.43 | 0.41 | 0.42 | 0.44 | 0.42 | 0.43 | 0.45 | 0.44 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||
| Mondelēz International Inc. | 0.30 | 0.30 | 0.30 | 0.30 | 0.29 | 0.28 | 0.26 | 0.27 | 0.27 | 0.25 | 0.27 | 0.28 | 0.29 | 0.31 | 0.32 | 0.32 | 0.29 | 0.29 | ||||||
| PepsiCo Inc. | 0.47 | 0.48 | 0.46 | 0.48 | 0.49 | 0.48 | 0.45 | 0.45 | 0.45 | 0.46 | 0.44 | 0.45 | 0.45 | 0.45 | 0.42 | 0.42 | 0.42 | 0.43 | ||||||
| Philip Morris International Inc. | 0.72 | 0.75 | 0.71 | 0.75 | 0.75 | 0.76 | 0.74 | 0.74 | 0.75 | 0.77 | 0.73 | 0.76 | 0.77 | 0.76 | 0.70 | 0.67 | 0.68 | 0.70 | ||||||
Based on: 10-Q (reporting date: 2026-07-03), 10-Q (reporting date: 2026-04-03), 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 Q2 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 43,543 ÷ 107,922 = 0.40
2 Click competitor name to see calculations.
The analysis of solvency ratios indicates a period of moderate volatility in leverage, characterized by a peak in early 2025 followed by a steady decline toward the end of the observed period. The overall trajectory suggests a strategic management of debt relative to a growing asset base, resulting in an improved solvency position by mid-2026.
- Total Debt Trends
- Debt levels exhibited significant fluctuations, starting at 41,701 million USD in April 2022 and reaching a low of 39,149 million USD by December 2022. A period of accumulation followed, with debt peaking at 49,446 million USD in June 2025. From that peak, a consistent downward trend is observed, with total debt decreasing to 43,543 million USD by July 2026.
- Total Asset Growth
- The asset base showed a general upward trend over the analyzed timeframe. Total assets rose from 94,064 million USD in April 2022 to a high of 107,922 million USD by July 2026. This steady expansion of assets has served to offset increases in total debt and contributed to the overall reduction in the leverage ratio.
- Debt to Assets Ratio Dynamics
- The debt to assets ratio remained relatively stable between 0.41 and 0.45 from April 2022 through December 2023. A period of increased leverage began in early 2024, culminating in a peak ratio of 0.48 in March 2025. Following this peak, the ratio declined steadily for five consecutive quarters, reaching a period low of 0.40 by July 2026, reflecting a reduction in the proportion of assets financed through debt.
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Financial Leverage
Coca-Cola Co., financial leverage calculation (quarterly data)
| Jul 3, 2026 | Apr 3, 2026 | 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) | ||||||||||||||||||||||||
| Total assets | 107,922) | 104,217) | 104,816) | 106,045) | 104,333) | 101,716) | 100,549) | 106,266) | 101,202) | 99,392) | 97,703) | 97,578) | 98,456) | 97,404) | 92,763) | 92,471) | 93,169) | 94,064) | ||||||
| Equity attributable to shareowners of The Coca-Cola Company | 36,150) | 33,633) | 32,169) | 31,247) | 28,585) | 26,202) | 24,856) | 26,518) | 25,853) | 26,429) | 25,941) | 26,325) | 26,013) | 25,217) | 24,105) | 22,805) | 23,005) | 24,845) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Financial leverage1 | 2.99 | 3.10 | 3.26 | 3.39 | 3.65 | 3.88 | 4.05 | 4.01 | 3.91 | 3.76 | 3.77 | 3.71 | 3.78 | 3.86 | 3.85 | 4.05 | 4.05 | 3.79 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||
| Mondelēz International Inc. | 2.67 | 2.76 | 2.77 | 2.73 | 2.71 | 2.67 | 2.54 | 2.59 | 2.64 | 2.73 | 2.52 | 2.48 | 2.51 | 2.58 | 2.65 | 2.55 | 2.40 | 2.41 | ||||||
| PepsiCo Inc. | 5.08 | 5.17 | 5.26 | 5.50 | 5.72 | 5.53 | 5.51 | 5.17 | 5.12 | 5.25 | 5.43 | 5.31 | 5.42 | 5.46 | 5.38 | 4.98 | 5.02 | 5.11 | ||||||
| Philip Morris International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2026-07-03), 10-Q (reporting date: 2026-04-03), 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 Q2 2026 Calculation
Financial leverage = Total assets ÷ Equity attributable to shareowners of The Coca-Cola Company
= 107,922 ÷ 36,150 = 2.99
2 Click competitor name to see calculations.
The financial position of the entity is characterized by a transition from a period of stable, elevated leverage to a phase of significant deleveraging between April 2022 and July 2026. While the total asset base expanded incrementally over the period, the acceleration of equity growth in the latter stages resulted in a substantial reduction of the financial leverage ratio.
- Total Asset Trajectory
- Total assets demonstrated a general upward trend, rising from 94,064 million USD in April 2022 to 107,922 million USD by July 2026. A brief period of contraction occurred in 2022, reaching a low of 92,471 million USD in September, followed by a consistent recovery and expansion phase that peaked at 106,266 million USD in September 2024 before stabilizing above 104,000 million USD.
- Equity Growth Dynamics
- Equity attributable to shareowners remained relatively range-bound between April 2022 and December 2024, fluctuating between 22,805 million USD and 26,518 million USD. A marked shift occurred starting in March 2025, where equity began a steep ascent, climbing to 36,150 million USD by July 2026. This represents a significant increase in the company's internal funding base during the final quarter of the observed period.
- Financial Leverage Analysis
- The financial leverage ratio exhibited two distinct phases. From April 2022 through December 2024, the ratio remained high and volatile, peaking at 4.05 in September 2022 and December 2024, indicating a consistent reliance on debt to finance assets. Starting in March 2025, a sustained downward trend is observed, with the ratio falling steadily from 3.88 to 2.99 by July 2026. This decline indicates a strengthening of the solvency profile and a strategic shift toward a less leveraged capital structure.
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Interest Coverage
Coca-Cola Co., interest coverage calculation (quarterly data)
Based on: 10-Q (reporting date: 2026-07-03), 10-Q (reporting date: 2026-04-03), 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 Q2 2026 Calculation
Interest coverage
= (EBITQ2 2026
+ EBITQ1 2026
+ EBITQ4 2025
+ EBITQ3 2025)
÷ (Interest expenseQ2 2026
+ Interest expenseQ1 2026
+ Interest expenseQ4 2025
+ Interest expenseQ3 2025)
= (5,844 + 4,986 + 3,393 + 4,574)
÷ (369 + 375 + 431 + 391)
= 12.00
The solvency profile exhibits a period of contraction in interest coverage followed by a sustained recovery, driven primarily by operational growth in earnings before interest and tax (EBIT) that offset rising borrowing costs.
- Interest Coverage Ratio Trajectory
- A significant fluctuation in the interest coverage ratio is observed, peaking at 17.35 in September 2022 before entering a downward trend. The ratio reached its lowest point of 8.79 in June 2024. This decline indicates a temporary reduction in the margin of safety available to meet interest obligations. However, a recovery phase began in late 2024, with the ratio steadily climbing to 12.00 by July 2026, suggesting an improved ability to service debt.
- Interest Expense Dynamics
- Interest expenses showed a consistent upward trend from April 2022, where expenses stood at 182 million, peaking at 431 million in December 2024. This increase in the cost of debt served as the primary catalyst for the compression of the interest coverage ratio between 2022 and 2024. In 2025 and 2026, interest expenses stabilized, fluctuating between 369 million and 445 million, which allowed the coverage ratio to improve as operational earnings grew.
- EBIT Performance and Solvency Impact
- Earnings before interest and tax demonstrated strong growth and seasonal volatility. While EBIT fluctuated between approximately 2.4 billion and 4.4 billion during 2022 and 2023, a marked increase is observed starting in 2024. EBIT reached its highest levels in 2026, peaking at 5.844 billion in July 2026. This expansion in operating profit effectively countered the elevated interest environment, restoring the solvency ratio to double digits and enhancing the overall financial stability of the organization.
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