.Long-term Debt and Solvency Analysis Quarterly Data
Difficulty: Beginner
Solvency ratios also known as long-term debt ratios measure a company's ability to meet long-term obligations.
Ratios (Summary)
Coca-Cola Co., debt and solvency ratios (quarterly data)
| 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 | Dec 31, 2014 | Sep 26, 2014 | Jun 27, 2014 | Mar 28, 2014 | Dec 31, 2013 | Sep 27, 2013 | Jun 28, 2013 | Mar 29, 2013 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | Debt to equity | |||||||||||||||||||||
| | Debt to capital | |||||||||||||||||||||
| | Interest coverage |
| 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 deteriorated from Q3 2017 to Q4 2017 but then improved from Q4 2017 to Q1 2018 not reaching Q3 2017 level. |
| 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 deteriorated from Q3 2017 to Q4 2017 but then slightly improved from Q4 2017 to Q1 2018. |
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Coca-Cola Co.'s interest coverage ratio improved from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018. |
Debt to Equity
Coca-Cola Co., debt to equity calculation (quarterly data)
| 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 | Dec 31, 2014 | Sep 26, 2014 | Jun 27, 2014 | Mar 28, 2014 | Dec 31, 2013 | Sep 27, 2013 | Jun 28, 2013 | Mar 29, 2013 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ 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 | |||||||||||||||||||||
| Ratio | ||||||||||||||||||||||
| | Debt to equity1 | |||||||||||||||||||||
Q1 2018 Calculations
1 Debt to equity = Total debt ÷ Equity attributable to shareowners of The Coca-Cola Company
= ÷ =
| 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 deteriorated from Q3 2017 to Q4 2017 but then improved from Q4 2017 to Q1 2018 not reaching Q3 2017 level. |
Debt to Capital
Coca-Cola Co., debt to capital calculation (quarterly data)
| 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 | Dec 31, 2014 | Sep 26, 2014 | Jun 27, 2014 | Mar 28, 2014 | Dec 31, 2013 | Sep 27, 2013 | Jun 28, 2013 | Mar 29, 2013 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ 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 | |||||||||||||||||||||
| Ratio | ||||||||||||||||||||||
| | Debt to capital1 | |||||||||||||||||||||
Q1 2018 Calculations
1 Debt to capital = Total debt ÷ Total capital
= ÷ =
| 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 deteriorated from Q3 2017 to Q4 2017 but then slightly improved from Q4 2017 to Q1 2018. |
Interest Coverage
Coca-Cola Co., interest coverage calculation (quarterly data)
| 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 | Dec 31, 2014 | Sep 26, 2014 | Jun 27, 2014 | Mar 28, 2014 | Dec 31, 2013 | Sep 27, 2013 | Jun 28, 2013 | Mar 29, 2013 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||||||||||||||||||||
| | Net income attributable to shareowners of The Coca-Cola Company | |||||||||||||||||||||
| | Add: Net income attributable to noncontrolling interest | |||||||||||||||||||||
| | Less: Income from discontinued operations, net of income taxes | |||||||||||||||||||||
| | Add: Income tax expense | |||||||||||||||||||||
| | Add: Interest expense | |||||||||||||||||||||
| | Earnings before interest and tax (EBIT) | |||||||||||||||||||||
| Ratio | ||||||||||||||||||||||
| | Interest coverage1 | |||||||||||||||||||||
Q1 2018 Calculations
1 Interest coverage
= (EBITQ1 2018
+ EBITQ4 2017
+ EBITQ3 2017
+ EBITQ2 2017)
÷ (Interest expenseQ1 2018
+ Interest expenseQ4 2017
+ Interest expenseQ3 2017
+ Interest expenseQ2 2017)
= ( + + + )
÷ ( + + + )
=
| 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 2017 to Q4 2017 and from Q4 2017 to Q1 2018. |
