Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Analysis of Profitability Ratios
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- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
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Solvency Ratios (Summary)
Coca-Cola Co., solvency ratios (quarterly data)
Based on: 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 cyclical pattern of leverage expansion followed by a notable period of deleveraging. While debt levels peaked in early 2025, the subsequent trend shows a systematic reduction in financial risk and an improvement in the overall capital structure.
- Debt to Equity Ratio
- This ratio fluctuated between 1.30 and 1.87 over the analyzed period. A peak was reached in March 2025 at 1.87, followed by a consistent and significant decline to 1.30 by April 2026, indicating a strengthened equity position relative to total debt.
- Debt to Capital and Debt to Assets
- Both metrics remained relatively stable with low volatility. Debt to capital varied from a high of 0.65 to a low of 0.57, while debt to assets peaked at 0.48 in March 2025 before returning to 0.42 by April 2026. These movements suggest a controlled approach to asset financing and capital composition.
- Financial Leverage
- A marked downward trend is observed in the final quarters of the data. After peaking at 4.05 in December 2024, the leverage ratio decreased steadily to 3.10 by April 2026, reflecting a reduction in the overall reliance on borrowed funds to finance assets.
- Interest Coverage Ratio
- The capacity to service interest payments experienced a period of decline, falling from a peak of 17.35 in September 2022 to a trough of 8.79 in September 2024. However, a recovery phase is evident, with the ratio ascending to 11.08 by April 2026, suggesting improved operating earnings relative to interest obligations.
Overall, the financial trajectory indicates a transition from a period of increasing leverage and declining coverage to a more conservative solvency position. The simultaneous decrease in financial leverage and the recovery of the interest coverage ratio by early 2026 signal a reduction in long-term financial risk and improved solvency health.
Debt Ratios
Coverage Ratios
Debt to Equity
Coca-Cola Co., debt to equity calculation (quarterly data)
| 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 | |||||||||||||||||||||||
| Current maturities of long-term debt | |||||||||||||||||||||||
| Long-term debt, excluding current maturities | |||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||
| Equity attributable to shareowners of The Coca-Cola Company | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to equity1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||
| Mondelēz International Inc. | |||||||||||||||||||||||
| PepsiCo Inc. | |||||||||||||||||||||||
| Philip Morris International Inc. | |||||||||||||||||||||||
Based on: 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 Q1 2026 Calculation
Debt to equity = Total debt ÷ Equity attributable to shareowners of The Coca-Cola Company
= ÷ =
2 Click competitor name to see calculations.
The solvency profile over the analyzed period demonstrates a transition from stable leverage to a phase of increased borrowing, followed by a significant deleveraging trend. While total debt experienced intermittent volatility, the consistent growth of shareholder equity ultimately drove a marked improvement in the overall capital structure.
- Total Debt Trends
- Total debt remained relatively range-bound between US$ 39 billion and US$ 43 billion from April 2022 through early 2024. A period of expansion occurred between June 2024 and June 2025, with obligations peaking at US$ 49,446 million. This was followed by a steady reduction in liabilities, bringing the total debt down to US$ 43,890 million by April 2026.
- Equity Growth
- Equity attributable to shareowners exhibited a general upward trajectory, rising from US$ 24,845 million in April 2022 to US$ 33,633 million by April 2026. Despite a temporary contraction in December 2024 to US$ 24,856 million, the subsequent recovery and sustained growth strengthened the capital base, enhancing the organization's ability to absorb debt.
- Debt to Equity Ratio Dynamics
- The debt to equity ratio fluctuated between 1.53 and 1.87 for the majority of the period. The ratio reached its maximum of 1.87 in December 2024, coinciding with the peak in debt levels and a simultaneous dip in equity. Following this peak, a decisive downward trend is observed, with the ratio falling to 1.73 in June 2025, 1.41 in December 2025, and reaching a period low of 1.30 by April 2026. This progression indicates a systematic reduction in financial leverage and a strengthened solvency position.
Debt to Capital
Coca-Cola Co., debt to capital calculation (quarterly data)
| 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 | |||||||||||||||||||||||
| Current maturities of long-term debt | |||||||||||||||||||||||
| Long-term debt, excluding current maturities | |||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||
| Equity attributable to shareowners of The Coca-Cola Company | |||||||||||||||||||||||
| Total capital | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to capital1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||
| Mondelēz International Inc. | |||||||||||||||||||||||
| PepsiCo Inc. | |||||||||||||||||||||||
| Philip Morris International Inc. | |||||||||||||||||||||||
Based on: 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 Q1 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The solvency profile exhibits a period of relative stability followed by a strategic shift toward lower leverage in the final quarters of the observed period. Total debt and total capital both fluctuated, though total capital maintained a general upward trajectory, increasing from approximately 66.5 billion USD in early 2022 to a peak of 78.7 billion USD in late 2025.
- Total Debt Trends
- Debt levels remained volatile, oscillating between a low of 39.1 billion USD in December 2022 and a peak of 49.4 billion USD in June 2025. A significant period of debt accumulation occurred between December 2023 and June 2025, followed by a consistent quarterly decline to 43.9 billion USD by April 2026.
- Total Capital Evolution
- Total capital showed a gradual growth trend over the analyzed period. Starting at 66.5 billion USD in April 2022, capital expanded to reach its maximum value of 78.7 billion USD in September 2025, before ending the period at 77.5 billion USD in April 2026.
- Debt to Capital Ratio Analysis
- The ratio remained largely range-bound between 0.60 and 0.65 for the majority of the timeframe, indicating a consistent capital structure. However, a notable downward trend emerged starting in June 2025, with the ratio decreasing from 0.63 to a period low of 0.57 by April 2026. This trend suggests a deliberate reduction in financial leverage and an improvement in the solvency position toward the end of the sequence.
Debt to Assets
Coca-Cola Co., debt to assets calculation (quarterly data)
| 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 | |||||||||||||||||||||||
| Current maturities of long-term debt | |||||||||||||||||||||||
| Long-term debt, excluding current maturities | |||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to assets1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||
| Mondelēz International Inc. | |||||||||||||||||||||||
| PepsiCo Inc. | |||||||||||||||||||||||
| Philip Morris International Inc. | |||||||||||||||||||||||
Based on: 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 Q1 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The solvency profile indicates a period of relative stability punctuated by a notable increase in leverage during the first half of 2025, followed by a subsequent deleveraging phase. The overall trend reflects a strategic fluctuation in debt levels against a backdrop of steady asset expansion.
- Total Debt Dynamics
- Debt levels remained relatively stable between 41.7 billion USD and 39.1 billion USD throughout 2022. A gradual upward trend commenced in 2023, accelerating through 2024 and reaching a peak of 49.4 billion USD by June 2025. Following this peak, a consistent reduction in total debt is observed, descending to 43.9 billion USD by April 2026.
- Asset Base Expansion
- Total assets exhibited a general growth trajectory, rising from 94.1 billion USD in April 2022 to a peak of 106.3 billion USD in September 2024. While there were minor fluctuations in late 2024 and 2025, the asset base maintained a higher plateau compared to the 2022 baseline, ending at 104.2 billion USD in April 2026.
- Debt to Assets Ratio Trends
- The debt to assets ratio remained largely contained between 0.41 and 0.45 for the majority of the analyzed period, suggesting a disciplined approach to leverage. A significant deviation occurred in March 2025, where the ratio reached a maximum of 0.48. This spike coincided with the period of highest total debt. However, the ratio normalized quickly, returning to 0.42 by April 2026, which aligns with the levels observed in late 2022.
- Solvency Conclusion
- The correlation between increasing assets and increasing debt suggests that leverage was used to support balance sheet growth. The subsequent decline in the debt to assets ratio through late 2025 and early 2026 indicates a successful effort to reduce financial risk and restore the solvency ratio to historical norms.
Financial Leverage
Coca-Cola Co., financial leverage calculation (quarterly data)
| 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 | |||||||||||||||||||||||
| Equity attributable to shareowners of The Coca-Cola Company | |||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||
| Financial leverage1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||
| Mondelēz International Inc. | |||||||||||||||||||||||
| PepsiCo Inc. | |||||||||||||||||||||||
| Philip Morris International Inc. | |||||||||||||||||||||||
Based on: 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 Q1 2026 Calculation
Financial leverage = Total assets ÷ Equity attributable to shareowners of The Coca-Cola Company
= ÷ =
2 Click competitor name to see calculations.
The financial position from April 2022 through April 2026 is characterized by a general expansion of the asset base and a significant strengthening of shareholder equity, leading to a marked reduction in financial leverage toward the end of the period.
- Asset and Equity Growth
- Total assets exhibited a gradual upward trajectory, increasing from 94,064 million USD in April 2022 to a peak of 106,266 million USD in September 2024, before stabilizing around 104,217 million USD by April 2026. During the same timeframe, equity attributable to shareowners demonstrated more aggressive growth, particularly in the latter half of the period. After fluctuating between 22,805 million USD and 26,518 million USD from 2022 to 2024, equity rose sharply from 24,856 million USD in September 2024 to 33,633 million USD by April 2026.
- Financial Leverage Trends
- The financial leverage ratio experienced three distinct phases. The first phase, spanning April 2022 to September 2023, showed moderate volatility, peaking at 4.05 before dipping to 3.71. The second phase, from December 2023 to September 2024, saw a return to higher leverage levels, once again reaching a peak of 4.05. The third and most notable phase began in December 2024, characterized by a consistent and sustained decline in the ratio. The leverage decreased from 4.05 in September 2024 to 3.10 by April 2026.
- Solvency Implications
- The consistent reduction in the financial leverage ratio during 2025 and 2026 indicates a strategic shift toward a more conservative capital structure. This trend is primarily driven by the rapid increase in equity relative to asset growth, suggesting either a reduction in total liabilities or a significant retention of earnings. The decline from a peak of 4.05 to 3.10 represents a substantial improvement in the solvency profile, reducing the company's reliance on debt to finance its assets.
Interest Coverage
Coca-Cola Co., interest coverage calculation (quarterly data)
Based on: 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 Q1 2026 Calculation
Interest coverage
= (EBITQ1 2026
+ EBITQ4 2025
+ EBITQ3 2025
+ EBITQ2 2025)
÷ (Interest expenseQ1 2026
+ Interest expenseQ4 2025
+ Interest expenseQ3 2025
+ Interest expenseQ2 2025)
= ( + + + )
÷ ( + + + )
=
The analysis of solvency indicators reveals a period of fluctuation in the capacity to service debt, characterized by a significant compression of the interest coverage ratio between 2022 and 2024, followed by a recovery phase entering 2025 and 2026.
- Earnings Before Interest and Tax (EBIT)
- Operational earnings demonstrated a general upward trend despite quarterly volatility. EBIT increased from 3,640 million USD in April 2022 to a peak of 5,241 million USD in June 2025. This growth indicates a strengthening of the core operating profit available to cover financial obligations.
- Interest Expense
- A substantial rise in interest costs is observed over the analyzed period. Expenses grew from 182 million USD in April 2022 to a peak of 445 million USD in June 2025. The rapid escalation of interest payments, particularly between December 2022 and December 2023, placed downward pressure on solvency margins.
- Interest Coverage Ratio
- The interest coverage ratio followed a U-shaped trajectory. After reaching a peak of 17.35 in September 2022, the ratio entered a steady decline, reaching a minimum of 8.79 in September 2024. This decline was primarily driven by the fact that interest expenses grew at a faster rate than EBIT during this window. A recovery trend emerged in 2025, with the ratio ascending to 11.08 by April 2026, as significant gains in EBIT began to outweigh the elevated cost of debt.