Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Balance Sheet: Assets
- Common-Size Income Statement
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Total Asset Turnover since 2005
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Long-term Activity Ratios (Summary)
Coca-Cola Co., long-term (investment) activity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The analysis of the annual financial ratios reveals several notable trends across the five-year period.
- Net Fixed Asset Turnover
- This ratio demonstrates a consistent upward trend from 3.06 in 2020 to a peak of 4.95 in 2023, followed by a slight decline to 4.57 in 2024. The increase over the first four years suggests improving efficiency in utilizing fixed assets to generate revenue, while the moderate decrease in the latest year may indicate either increased asset base or marginally reduced operational efficiency.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This version of the net fixed asset turnover follows a similar trajectory to the standard measure, rising from 2.68 in 2020 to 4.33 in 2023 and then decreasing slightly to 4.10 in 2024. The pattern closely mirrors the net fixed asset turnover trend, reflecting the company's effective use of leased assets alongside owned fixed assets to produce sales.
- Total Asset Turnover
- The total asset turnover ratio exhibits steady improvement from 0.38 in 2020 to 0.47 in 2023, maintaining that level in 2024. This indicates a continuous enhancement in the company's overall asset utilization efficiency in generating revenue, with stabilization in the last two years suggesting a plateau or consolidation phase.
- Equity Turnover
- The equity turnover ratio remains relatively stable with slight fluctuations, starting at 1.71 in 2020, dipping marginally to 1.68 in 2021, then gaining upward momentum through 2022 and 2023, reaching 1.76, and finally rising to 1.89 in 2024. This gradual increase points to improved efficiency in using shareholders’ equity to support revenue generation over time.
Overall, the data depicts a positive trajectory in asset usage and equity efficiency over the observed period, with slight moderation occurring in some ratios during the final year. These trends suggest an effective management of assets and equity contributing to revenue growth, albeit with potential early signs of stabilization or cautious investment in the most recent year.
Net Fixed Asset Turnover
Coca-Cola Co., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating revenues | ||||||
| Property, plant and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Consumer Staples | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net fixed asset turnover = Net operating revenues ÷ Property, plant and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Net Operating Revenues
- Net operating revenues show a consistent upward trend over the five-year period. Starting at 33,014 million US dollars in 2020, revenues increased each year, reaching 47,061 million US dollars by 2024. The growth appears steady but shows some deceleration in the final year compared to previous increments, indicating a possible moderation in revenue expansion.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment exhibits a fluctuating pattern. It starts at 10,777 million US dollars in 2020 and decreases steadily to 9,236 million US dollars by 2023, suggesting significant asset disposals, depreciation, or limited capital expenditure. In 2024, there is a rebound to 10,303 million US dollars, indicating renewed investment or asset revaluation.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures revenue generated per unit of net fixed assets, improves markedly from 3.06 in 2020 to a peak of 4.95 in 2023. This indicates increasing efficiency in the use of fixed assets to generate revenue. However, in 2024, the ratio declines to 4.57, suggesting either a relative increase in fixed assets or a slower growth in revenue relative to assets. Despite this dip, the ratio remains significantly higher than the initial value in 2020.
- Overall Analysis
- The data suggests a company experiencing strong revenue growth with improving operational efficiency in asset utilization through most of the period. The declining asset base until 2023 combined with rising revenues resulted in higher turnover ratios, indicating enhanced asset productivity. The slight reversal in fixed asset turnover and the asset base increase in 2024 may reflect new capital investment aimed at supporting future growth, although revenue growth appears to moderate slightly at that point.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Coca-Cola Co., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating revenues | ||||||
| Property, plant and equipment, net | ||||||
| Operating lease ROU assets (included in Other noncurrent assets) | ||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Consumer Staples | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net operating revenues ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Net Operating Revenues
- There is a consistent upward trend in net operating revenues over the five-year period. Starting from 33,014 million US dollars in 2020, revenues increased steadily each year, reaching 47,061 million US dollars by 2024. The growth shows a decreasing rate in the latest year but remains positive overall, indicating sustained expansion in sales activity.
- Property, Plant, and Equipment, Net
- The net value of property, plant, and equipment exhibits a declining trend from 2020 to 2023, decreasing from 12,325 million US dollars to 10,564 million US dollars. However, there is a slight rebound in 2024 to 11,485 million US dollars. This pattern may reflect asset disposals or depreciation exceeding new investments until 2023, followed by some recovery or capital expenditure in 2024.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio shows a marked improvement during the period, rising from 2.68 in 2020 to a peak of 4.33 in 2023, before slightly declining to 4.10 in 2024. This ratio's increase indicates improved efficiency in utilizing fixed assets to generate revenues, with the exception of the minor decline in the last year under consideration.
- Summary of Trends and Insights
- The overall increase in net operating revenues combined with the general reduction in net fixed assets reflects enhanced operational efficiency. The upward trajectory of the fixed asset turnover ratio supports this observation, suggesting that the company has been able to generate higher sales per unit of fixed asset. The recent slight decline in fixed asset turnover coupled with increased property, plant, and equipment values in 2024 may indicate new investments that have yet to be fully leveraged for revenue generation.
Total Asset Turnover
Coca-Cola Co., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating revenues | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| Total Asset Turnover, Industry | ||||||
| Consumer Staples | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Total asset turnover = Net operating revenues ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Net Operating Revenues
- The net operating revenues have shown a consistent upward trend over the five-year period. Starting at 33,014 million US dollars in 2020, revenues increased annually to reach 47,061 million US dollars by the end of 2024. This reflects a steady growth trajectory, indicating successful revenue expansion efforts and potentially increasing market demand or effective pricing strategies.
- Total Assets
- Total assets experienced an overall increase, rising from 87,296 million US dollars in 2020 to 100,549 million US dollars in 2024. Although there was a slight dip in 2022, this appears to be a minor fluctuation in an overall upward trend. The increase in total assets suggests ongoing investment or asset accumulation, supporting growth and operational expansion.
- Total Asset Turnover
- The total asset turnover ratio improved from 0.38 in 2020 to 0.47 in 2023 and remained steady through 2024. This indicates enhanced efficiency in utilizing assets to generate revenues. The rise in this ratio, alongside increasing revenues and assets, suggests that the company is improving its operational effectiveness, generating more sales per unit of asset over time.
Equity Turnover
Coca-Cola Co., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating revenues | ||||||
| Equity attributable to shareowners of The Coca-Cola Company | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| Equity Turnover, Industry | ||||||
| Consumer Staples | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Equity turnover = Net operating revenues ÷ Equity attributable to shareowners of The Coca-Cola Company
= ÷ =
2 Click competitor name to see calculations.
- Net Operating Revenues
- Over the observed five-year period, net operating revenues displayed a consistent upward trend. Starting at $33,014 million in 2020, revenues increased each subsequent year, reaching $47,061 million by 2024. This represents a substantial growth of approximately 42.5% over the period, with the year-to-year increases indicating sustained revenue expansion.
- Equity Attributable to Shareowners
- Equity attributable to shareowners showed an overall increasing trend from 2020 to 2023, beginning at $19,299 million and rising to $25,941 million. However, in 2024, there was a slight decline to $24,856 million. Despite this minor decrease, equity levels remained significantly higher than at the beginning of the period, indicating generally positive growth in shareholders' equity across the four years, followed by a moderate contraction in the fifth year.
- Equity Turnover Ratio
- The equity turnover ratio fluctuated moderately but demonstrated an overall increasing pattern. It started at 1.71 in 2020, slightly declined to 1.68 in 2021, then increased to 1.78 in 2022 and remained steady at 1.76 in 2023, before rising to 1.89 in 2024. This upward movement towards the end of the period suggests improved efficiency in utilizing equity to generate sales.
- Summary of Trends and Insights
- The financial data reveals that net operating revenues have grown steadily and substantially over the five years, which points to robust business expansion or increased market demand. The equity attributable to shareowners generally increased, suggesting value creation for shareholders, although the slight decline in the final year signals a need to investigate potential causes such as dividends, share repurchases, or losses. The equity turnover ratio’s overall upward trend underscores improving operational efficiency in using equity capital to drive revenues. Combined, these trends suggest a company with growing sales capacity and effective capital usage, albeit with a slight indication of caution in equity management during the last period.