Stock Analysis on Net

Coca-Cola Co. (NYSE:KO)

Analysis of Profitability Ratios 

Microsoft Excel

Profitability Ratios (Summary)

Coca-Cola Co., profitability ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Return on Sales
Gross profit margin 59.52% 58.14% 60.27% 59.31% 60.77%
Operating profit margin 24.72% 25.37% 26.67% 27.25% 27.06%
Net profit margin 23.42% 22.19% 25.28% 23.47% 23.94%
Return on Investment
Return on equity (ROE) 41.30% 39.59% 42.48% 40.14% 46.99%
Return on assets (ROA) 10.97% 10.29% 10.36% 8.87% 10.33%

Based on: 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), 10-K (reporting date: 2019-12-31).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Coca-Cola Co. gross profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Coca-Cola Co. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Coca-Cola Co. net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Coca-Cola Co. ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
ROA A profitability ratio calculated as net income divided by total assets. Coca-Cola Co. ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Gross Profit Margin

Coca-Cola Co., gross profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Gross profit 27,234 25,004 23,298 19,581 22,647
Net operating revenues 45,754 43,004 38,655 33,014 37,266
Profitability Ratio
Gross profit margin1 59.52% 58.14% 60.27% 59.31% 60.77%
Benchmarks
Gross Profit Margin, Competitors2
Mondelēz International Inc. 38.22% 35.92% 39.19% 39.30% 39.96%
PepsiCo Inc. 54.21% 53.03% 53.35% 54.82% 55.13%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Gross profit margin = 100 × Gross profit ÷ Net operating revenues
= 100 × 27,234 ÷ 45,754 = 59.52%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Coca-Cola Co. gross profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Operating Profit Margin

Coca-Cola Co., operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Operating income 11,311 10,909 10,308 8,997 10,086
Net operating revenues 45,754 43,004 38,655 33,014 37,266
Profitability Ratio
Operating profit margin1 24.72% 25.37% 26.67% 27.25% 27.06%
Benchmarks
Operating Profit Margin, Competitors2
Mondelēz International Inc. 15.28% 11.22% 16.20% 14.50% 14.86%
PepsiCo Inc. 13.10% 13.33% 14.04% 14.32% 15.32%
Operating Profit Margin, Sector
Food, Beverage & Tobacco 16.62% 16.13% 17.79% 17.64% 18.59%
Operating Profit Margin, Industry
Consumer Staples 6.58% 7.61% 7.52% 7.21% 6.49%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Operating profit margin = 100 × Operating income ÷ Net operating revenues
= 100 × 11,311 ÷ 45,754 = 24.72%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Coca-Cola Co. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Net Profit Margin

Coca-Cola Co., net profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net income attributable to shareowners of The Coca-Cola Company 10,714 9,542 9,771 7,747 8,920
Net operating revenues 45,754 43,004 38,655 33,014 37,266
Profitability Ratio
Net profit margin1 23.42% 22.19% 25.28% 23.47% 23.94%
Benchmarks
Net Profit Margin, Competitors2
Mondelēz International Inc. 13.77% 8.63% 14.97% 13.37% 14.96%
PepsiCo Inc. 9.92% 10.31% 9.59% 10.12% 10.89%
Net Profit Margin, Sector
Food, Beverage & Tobacco 14.28% 13.16% 14.77% 14.17% 15.43%
Net Profit Margin, Industry
Consumer Staples 4.99% 5.49% 5.54% 5.58% 4.00%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Net profit margin = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Net operating revenues
= 100 × 10,714 ÷ 45,754 = 23.42%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Coca-Cola Co. net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Return on Equity (ROE)

Coca-Cola Co., ROE calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net income attributable to shareowners of The Coca-Cola Company 10,714 9,542 9,771 7,747 8,920
Equity attributable to shareowners of The Coca-Cola Company 25,941 24,105 22,999 19,299 18,981
Profitability Ratio
ROE1 41.30% 39.59% 42.48% 40.14% 46.99%
Benchmarks
ROE, Competitors2
Mondelēz International Inc. 17.50% 10.11% 15.21% 12.89% 14.19%
PepsiCo Inc. 49.04% 51.96% 47.48% 52.92% 49.47%
ROE, Sector
Food, Beverage & Tobacco 34.00% 31.07% 32.22% 30.53% 32.93%
ROE, Industry
Consumer Staples 25.87% 26.95% 25.98% 25.33% 17.98%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
ROE = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Equity attributable to shareowners of The Coca-Cola Company
= 100 × 10,714 ÷ 25,941 = 41.30%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Coca-Cola Co. ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Return on Assets (ROA)

Coca-Cola Co., ROA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net income attributable to shareowners of The Coca-Cola Company 10,714 9,542 9,771 7,747 8,920
Total assets 97,703 92,763 94,354 87,296 86,381
Profitability Ratio
ROA1 10.97% 10.29% 10.36% 8.87% 10.33%
Benchmarks
ROA, Competitors2
Mondelēz International Inc. 6.95% 3.82% 6.41% 5.24% 6.00%
PepsiCo Inc. 9.03% 9.67% 8.25% 7.66% 9.31%
ROA, Sector
Food, Beverage & Tobacco 9.18% 8.27% 8.54% 7.43% 8.76%
ROA, Industry
Consumer Staples 7.96% 8.47% 8.00% 7.62% 5.73%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
ROA = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Total assets
= 100 × 10,714 ÷ 97,703 = 10.97%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Coca-Cola Co. ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.