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)
Debt Ratios
Coverage Ratios
Coca-Cola Co., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-10-02), 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 distinct cyclical pattern characterized by a period of increasing leverage through the first quarter of 2025, followed by a consistent and significant deleveraging phase through October 2026. This transition indicates a strategic shift toward reducing long-term debt obligations and improving the overall capital structure.
- Debt to Equity Ratio
- The ratio fluctuated between 1.53 and 1.87 for the majority of the period, reaching a peak of 1.87 in March 2025. Following this peak, a sustained downward trend is observed, with the ratio declining steadily to 1.11 by October 2026. This represents a substantial reduction in the reliance on debt relative to shareholder equity.
- Debt to Capital and Debt to Assets Ratios
- Both metrics remained relatively stable between 2022 and 2024. Debt to capital peaked at 0.65 in March 2025 before declining to 0.53, while debt to assets peaked at 0.48 during the same period before receding to 0.39. The synchronized decline in these ratios confirms a systemic reduction in total debt relative to both the total capital base and the total asset pool.
- Financial Leverage
- Financial leverage showed moderate volatility, peaking at 4.05 in September 2022 and December 2024. A sharp contraction began in mid-2025, with the ratio falling from 3.88 in March 2025 to 2.89 by October 2026. This decline suggests a reduction in the use of debt to finance assets, thereby lowering the company's financial risk profile.
- Interest Coverage Ratio
- The interest coverage ratio experienced a notable U-shaped trajectory. After peaking at 17.35 in September 2022, it entered a period of steady decline, reaching a low of 8.79 in September 2024. However, a recovery phase commenced in early 2025, with the ratio climbing back to 12.69 by October 2026, indicating an improved capacity to service interest payments from operating earnings.
In summary, the data reflects an initial phase of increasing financial risk and tightening interest coverage that reversed in 2025. The subsequent improvement across all solvency metrics indicates a strengthened balance sheet and a reduced risk of insolvency as of late 2026.
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Debt to Equity
Coca-Cola Co., debt to equity calculation (quarterly data)
| Oct 2, 2026 | 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 | 73) | 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 | 4,923) | 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 | 36,623) | 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 | 41,619) | 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 | 37,372) | 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 | 1.11 | 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. | 0.82 | 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. | 2.33 | 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: 2026-10-02), 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 Q3 2026 Calculation
Debt to equity = Total debt ÷ Equity attributable to shareowners of The Coca-Cola Company
= 41,619 ÷ 37,372 = 1.11
2 Click competitor name to see calculations.
The solvency profile exhibits a distinct transition from a period of fluctuating leverage to a consistent deleveraging trend. Between April 2022 and early 2025, the capital structure remained relatively stable but leaned toward higher debt utilization, reaching a peak in the first half of 2025 before entering a phase of significant reduction.
- Total Debt Dynamics
- Debt levels demonstrated volatility throughout 2022 and 2023, oscillating between approximately 39 billion and 42 billion USD. A period of expansion occurred between late 2023 and mid-2025, with total debt peaking at 49.4 billion USD in June 2025. Following this peak, a steady downward trajectory was established, with debt levels receding to 41.6 billion USD by October 2026.
- Equity Growth Trajectory
- Equity attributable to shareowners remained largely range-bound between 22 billion and 26 billion USD from April 2022 through late 2023. Starting in 2024, a sustained upward trend emerged, accelerating significantly through 2025 and 2026. This growth culminated in equity reaching 37.4 billion USD by the end of the period, representing a substantial increase in the internal funding base.
- Debt to Equity Ratio Interpretation
- The debt to equity ratio peaked at 1.87 in December 2023 and March 2025, signaling periods of increased financial leverage. However, starting in June 2025, the ratio entered a sharp and consistent decline. The simultaneous reduction in total debt and the expansion of equity resulted in the ratio dropping to 1.11 by October 2026. This trend indicates a marked improvement in long-term solvency and a reduced reliance on external borrowing to fund operations.
The overall financial trajectory indicates a strategic shift toward a more conservative balance sheet, characterized by a strengthened equity position and a systematic reduction in total liabilities.
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Debt to Capital
Coca-Cola Co., debt to capital calculation (quarterly data)
| Oct 2, 2026 | 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 | 73) | 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 | 4,923) | 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 | 36,623) | 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 | 41,619) | 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 | 37,372) | 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 | 78,991) | 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 | 0.53 | 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 | 0.45 | 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. | 0.70 | 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. | 1.20 | 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: 2026-10-02), 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 Q3 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 41,619 ÷ 78,991 = 0.53
2 Click competitor name to see calculations.
The solvency profile exhibits a distinct three-phase trajectory characterized by initial stability, a period of increased leverage, and a subsequent sustained deleveraging effort. The Debt to Capital ratio remained relatively constant for the first several years before trending downward significantly in the final observation period, indicating a strategic shift in the company's capital structure.
- Total Debt Dynamics
- Total debt demonstrated notable volatility, beginning at 41,701 million USD in April 2022 and reaching a peak of 49,446 million USD by June 2025. Following this peak, a consistent reduction in debt obligations was observed, with the balance decreasing to 41,619 million USD by October 2026, effectively returning to levels seen at the start of the analyzed period.
- Total Capital Evolution
- Total capital showed a general upward trajectory, increasing from 66,546 million USD in April 2022 to 78,991 million USD by October 2026. This expansion of the total financial base occurred despite the fluctuations in total debt, suggesting an increase in equity or other capital components over the timeframe.
- Debt to Capital Ratio Analysis
- From April 2022 through December 2024, the Debt to Capital ratio fluctuated within a narrow range between 0.60 and 0.65, suggesting a maintained equilibrium in financing. However, a decisive downward trend commenced in mid-2025. The ratio declined from 0.63 in March 2025 to a period low of 0.53 by October 2026. This improvement in the solvency ratio was driven by the convergence of decreasing total debt and increasing total capital, resulting in a reduced reliance on debt relative to the total capital investment.
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Debt to Assets
Coca-Cola Co., debt to assets calculation (quarterly data)
| Oct 2, 2026 | 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 | 73) | 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 | 4,923) | 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 | 36,623) | 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 | 41,619) | 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 | 107,950) | 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 | 0.39 | 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 | 0.30 | 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. | 0.46 | 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. | 0.71 | 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: 2026-10-02), 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 Q3 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 41,619 ÷ 107,950 = 0.39
2 Click competitor name to see calculations.
The company's solvency profile over the analyzed period is characterized by a phase of relative stability, a temporary increase in financial leverage, and a subsequent trend toward deleveraging and improved asset coverage.
- Total Debt Dynamics
- Total debt exhibited moderate volatility between April 2022 and December 2023, generally fluctuating within the range of 39.1 billion USD to 42.5 billion USD. A period of expansion followed, with debt levels rising steadily to a peak of 49.45 billion USD in June 2025. Following this peak, a consistent downward trajectory is observed, with total debt reducing to 41.62 billion USD by October 2026.
- Total Asset Evolution
- Total assets demonstrated a sustained upward trend throughout the period. Starting at 94.06 billion USD in April 2022, the asset base expanded to 107.95 billion USD by October 2026. This growth was consistent, providing a widening base of resources to support the company's obligations.
- Debt to Assets Ratio Analysis
- The debt-to-assets ratio remained largely stable between 0.41 and 0.45 from April 2022 through December 2024. A notable spike in leverage occurred in early 2025, with the ratio reaching a maximum of 0.48 in March 2025. From that point forward, a systematic decline is observed, with the ratio decreasing sequentially over the final six quarters to reach a period low of 0.39 by October 2026. This trend indicates a strategic shift toward lower financial risk and a strengthened solvency position relative to the company's total asset base.
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Financial Leverage
Coca-Cola Co., financial leverage calculation (quarterly data)
| Oct 2, 2026 | 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 | 107,950) | 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 | 37,372) | 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 | 2.89 | 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. | 2.70 | 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. | 5.02 | 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: 2026-10-02), 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 Q3 2026 Calculation
Financial leverage = Total assets ÷ Equity attributable to shareowners of The Coca-Cola Company
= 107,950 ÷ 37,372 = 2.89
2 Click competitor name to see calculations.
The financial position from April 2022 to October 2026 is characterized by a steady expansion of the asset base and a significant increase in equity, leading to a notable reduction in financial leverage. While a relatively stable leverage profile was maintained for the first three years of the period, a clear deleveraging trend emerged starting in mid-2025.
- Total Assets Trend
- Total assets experienced an overall increase from 94,064 million US$ in April 2022 to 107,950 million US$ by October 2026. The growth was not linear, with a slight contraction observed throughout much of 2022, followed by a period of expansion that peaked at 106,266 million US$ in September 2024 before stabilizing in the 104,000 to 108,000 million US$ range.
- Equity Growth
- Equity attributable to shareowners demonstrated substantial growth, particularly in the latter half of the analyzed period. After reaching a low of 22,805 million US$ in September 2022, equity grew consistently, with an acceleration starting in 2025. Equity increased from 26,202 million US$ in December 2023 to 37,372 million US$ by October 2026, indicating a strengthening of the company's internal capital base.
- Financial Leverage Analysis
- The financial leverage ratio remained relatively range-bound between 3.71 and 4.05 from April 2022 through December 2024, suggesting a consistent capital structure during this interval. However, a structural shift occurred starting in June 2025, when the ratio began a sustained decline from 3.65 down to 2.89 by October 2026. This downward trajectory reflects a strategic reduction in financial risk, as the growth in equity significantly outpaced the growth in total assets during the final 18 months of the period.
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Interest Coverage
Coca-Cola Co., interest coverage calculation (quarterly data)
Based on: 10-Q (reporting date: 2026-10-02), 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 Q3 2026 Calculation
Interest coverage
= (EBITQ3 2026
+ EBITQ2 2026
+ EBITQ1 2026
+ EBITQ4 2025)
÷ (Interest expenseQ3 2026
+ Interest expenseQ2 2026
+ Interest expenseQ1 2026
+ Interest expenseQ4 2025)
= (5,187 + 5,844 + 4,986 + 3,393)
÷ (354 + 369 + 375 + 431)
= 12.69
The interest coverage ratio exhibits a distinct U-shaped trajectory over the analyzed period, characterized by an initial peak, a sustained period of contraction, and a subsequent recovery phase. Although the capacity to service debt remained robust throughout the timeframe, the margin of safety fluctuated significantly in response to shifts in operating income and borrowing costs.
- Earnings Before Interest and Tax (EBIT) Trends
- Operating earnings demonstrate a general upward trend despite consistent quarterly volatility. EBIT increased from a 2022 range of US$ 2,482 million to US$ 3,642 million to a peak of US$ 5,844 million by July 2026. This growth in operational profitability served as a primary driver for the eventual recovery of the solvency ratio.
- Interest Expense Dynamics
- A substantial increase in interest expenses is observed between April 2022 and December 2024, with costs rising from US$ 182 million to a peak of US$ 431 million. Following this peak, a gradual reduction in interest obligations occurred throughout 2025 and 2026, concluding at US$ 354 million in October 2026.
- Interest Coverage Ratio Analysis
- The coverage ratio reached a maximum of 17.35 in September 2022 before entering a downward trend that lasted until September 2024, when it reached a minimum of 8.79. This decline was primarily attributable to the rapid escalation of interest expenses which outpaced the growth of operating income during that interval. A recovery phase began in late 2024, with the ratio steadily climbing to 12.69 by October 2026, reflecting the positive synergy of expanding EBIT and declining interest costs.
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