Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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Profitability Ratios (Summary)
Coca-Cola Co., profitability ratios
Based on: 10-K (reporting date: 2025-12-31), 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).
The profitability metrics demonstrate a generally positive trajectory over the five-year period, though with some fluctuations. Initial declines in key margins between 2021 and 2023 were followed by improvements in 2024 and 2025. Overall, the company appears to be strengthening its profitability position.
- Gross Profit Margin
- The gross profit margin experienced a slight decrease from 60.27% in 2021 to 58.14% in 2022. It then recovered to 59.52% in 2023 and continued to improve, reaching 61.06% in 2024 and 61.63% in 2025. This indicates increasing efficiency in production and cost of goods sold management in the later years of the period.
- Operating Profit Margin
- The operating profit margin exhibited a more pronounced decline from 26.67% in 2021 to 24.72% in 2023. A significant increase was observed in 2025, with the margin reaching 28.71%, following a moderate recovery to 21.23% in 2024. This suggests potential challenges in controlling operating expenses between 2021 and 2023, followed by successful cost management or revenue growth initiatives.
- Net Profit Margin
- Similar to the operating margin, the net profit margin decreased from 25.28% in 2021 to 22.19% in 2022, and then to 23.42% in 2023. It remained relatively stable at 22.59% in 2024 before increasing substantially to 27.34% in 2025. This pattern reflects the combined effect of gross profit, operating expenses, and other income/expenses on overall profitability.
- Return on Equity (ROE)
- Return on equity showed moderate fluctuations, decreasing from 42.48% in 2021 to 39.59% in 2022, increasing to 41.30% in 2023, and then to 42.77% in 2024 before decreasing slightly to 40.74% in 2025. The ROE remained consistently high throughout the period, indicating effective utilization of shareholder equity to generate profits.
- Return on Assets (ROA)
- Return on assets followed a similar trend to ROE, with a slight decrease from 10.36% in 2021 to 10.29% in 2022, an increase to 10.97% in 2023, a slight decrease to 10.57% in 2024, and a notable increase to 12.50% in 2025. This suggests improved efficiency in utilizing assets to generate earnings, particularly in the final year of the observed period.
In conclusion, while some profitability ratios experienced temporary declines, the overall trend indicates a strengthening financial performance, particularly in the most recent years. The substantial improvements in operating and net profit margins, alongside increases in ROA and ROE in 2025, suggest successful strategic initiatives and efficient resource allocation.
Return on Sales
Return on Investment
Gross Profit Margin
Coca-Cola Co., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | ||||||
| Net operating revenues | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Gross profit margin = 100 × Gross profit ÷ Net operating revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
The gross profit margin exhibited a fluctuating, yet generally positive, trend over the five-year period. While initial observations reveal some volatility, the metric demonstrates an overall improvement from 2021 to 2025.
- Gross Profit Margin Trend
- In 2021, the gross profit margin stood at 60.27%. A decrease was observed in 2022, with the margin declining to 58.14%. However, subsequent years showed recovery. The margin increased to 59.52% in 2023, then to 61.06% in 2024, and further to 61.63% in 2025. This indicates a strengthening ability to control production costs relative to revenue.
The increase in gross profit from US$23,298 million in 2021 to US$29,544 million in 2025 aligns with the upward trend in the gross profit margin. Simultaneously, net operating revenues also increased, moving from US$38,655 million to US$47,941 million over the same period. The consistent growth in both gross profit and net operating revenues suggests a healthy expansion of core business operations.
- Relationship between Gross Profit and Revenue
- The observed increase in gross profit margin, despite rising net operating revenues, suggests effective cost management or pricing strategies. The company appears to be successfully translating revenue growth into improved profitability at the gross level. The relatively stable margin in the latter years of the period (2024-2025) could indicate a maturing of these strategies.
The dip in gross profit margin in 2022 warrants further investigation, potentially relating to increased input costs or promotional activities. However, the subsequent recovery demonstrates resilience and an ability to adapt to changing market conditions.
Operating Profit Margin
Coca-Cola Co., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | ||||||
| Net operating revenues | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
| Operating Profit Margin, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| Operating Profit Margin, Industry | ||||||
| Consumer Staples | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Operating profit margin = 100 × Operating income ÷ Net operating revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
The operating profit margin exhibited fluctuations over the five-year period. Initial values demonstrated a generally decreasing trend, followed by a significant increase in the most recent year.
- Operating Profit Margin Trend
- In 2021, the operating profit margin stood at 26.67%. A decline was observed in 2022, with the margin decreasing to 25.37%. This downward trend continued into 2023, reaching 24.72%. The year 2024 saw a more pronounced decrease, with the operating profit margin falling to 21.23%, representing the lowest point in the observed period. However, a substantial recovery occurred in 2025, as the operating profit margin increased significantly to 28.71%.
The operating income increased overall from 2021 to 2025, though not consistently year-over-year. Net operating revenues also demonstrated a consistent increase throughout the period. The significant jump in operating profit margin in 2025 suggests improved operational efficiency or a favorable shift in revenue mix, despite a relatively modest increase in net operating revenues from 2024 to 2025.
- Relationship to Underlying Financial Items
- The decrease in the operating profit margin from 2021 to 2024 occurred alongside increasing net operating revenues, indicating that while revenue grew, operating income did not keep pace at the same rate. The substantial increase in operating profit margin in 2025, coupled with a smaller increase in net operating revenues, suggests a more efficient conversion of revenue into operating profit during that year.
The volatility in the operating profit margin warrants further investigation to understand the underlying drivers of these changes, including cost of goods sold, selling, general, and administrative expenses, and potential impacts from extraordinary items.
Net Profit Margin
Coca-Cola Co., net profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to shareowners of The Coca-Cola Company | ||||||
| Net operating revenues | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
| Net Profit Margin, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| Net Profit Margin, Industry | ||||||
| Consumer Staples | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Net profit margin = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Net operating revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
The net profit margin exhibited fluctuations over the five-year period. Initial values demonstrated a strong profitability position, followed by a period of decline, and ultimately a significant recovery.
- Overall Trend
- The net profit margin began at 25.28% in 2021. A decrease was observed in 2022, falling to 22.19%. This downward trend continued modestly into 2023, reaching 23.42%, before stabilizing at 22.59% in 2024. A substantial increase occurred in 2025, with the net profit margin rising to 27.34%.
- Year-over-Year Changes
- From 2021 to 2022, the net profit margin decreased by 3.09 percentage points. A subsequent increase of 1.23 percentage points was noted from 2022 to 2023. The change from 2023 to 2024 was minimal, with a decrease of 0.83 percentage points. The most significant year-over-year change occurred between 2024 and 2025, with an increase of 4.75 percentage points.
- Relationship to Revenue
- Net operating revenues consistently increased throughout the period. However, the net profit margin did not move in direct correlation with revenue growth. The increase in net income attributable to shareowners of The Coca-Cola Company in 2025, relative to the revenue increase, was the primary driver of the substantial improvement in the net profit margin during that year.
The observed volatility in the net profit margin suggests potential shifts in cost management, pricing strategies, or other factors impacting profitability. The substantial improvement in 2025 warrants further investigation to understand the underlying causes and assess the sustainability of this performance.
Return on Equity (ROE)
Coca-Cola Co., ROE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to shareowners of The Coca-Cola Company | ||||||
| Equity attributable to shareowners of The Coca-Cola Company | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
| ROE, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| ROE, Industry | ||||||
| Consumer Staples | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
ROE = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Equity attributable to shareowners of The Coca-Cola Company
= 100 × ÷ =
2 Click competitor name to see calculations.
The Return on Equity (ROE) exhibited a fluctuating, yet generally stable, pattern over the five-year period. Net income attributable to shareowners and equity attributable to shareowners both increased over the period, influencing the ROE values.
- ROE Trend
- The ROE began at 42.48% in 2021, decreased to 39.59% in 2022, and then recovered to 41.30% in 2023. A further increase to 42.77% was observed in 2024, followed by a slight decline to 40.74% in 2025. This suggests a consistent ability to generate profit from shareholder equity, despite some year-to-year variation.
- Net Income Influence
- Net income attributable to shareowners experienced a minor decrease from US$9,771 million in 2021 to US$9,542 million in 2022, which likely contributed to the initial decrease in ROE. Subsequent increases in net income, reaching US$13,107 million in 2025, generally supported ROE values.
- Equity Influence
- Equity attributable to shareowners demonstrated a consistent upward trend, increasing from US$22,999 million in 2021 to US$32,169 million in 2025. While this growth in equity generally indicates financial strength, it also exerts downward pressure on ROE, as the denominator in the ROE calculation increases. The impact of equity growth appears to have been offset by the increases in net income, maintaining ROE within a relatively narrow range.
Overall, the ROE remained at a relatively high level throughout the period, indicating efficient utilization of shareholder equity. The fluctuations observed are likely attributable to the combined effects of changes in net income and equity.
Return on Assets (ROA)
Coca-Cola Co., ROA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to shareowners of The Coca-Cola Company | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
| ROA, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| ROA, Industry | ||||||
| Consumer Staples | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
ROA = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibited a generally positive trajectory over the five-year period. While fluctuations were present, the metric demonstrated an overall improvement, culminating in a notable increase in the final year analyzed.
- Overall Trend
- The ROA experienced relative stability between 2021 and 2024, followed by a significant increase in 2025. The initial years showed minor variations, suggesting consistent asset utilization in generating profits. The substantial rise in 2025 indicates a marked improvement in profitability relative to the asset base.
- Year-over-Year Changes
- From 2021 to 2022, the ROA decreased slightly from 10.36% to 10.29%. This was followed by an increase to 10.97% in 2023. A modest decline to 10.57% occurred in 2024. The most significant change was observed between 2024 and 2025, with the ROA increasing substantially to 12.50%.
- Relationship to Underlying Components
- The ROA’s movement correlates with changes in both net income attributable to shareowners and total assets. While total assets generally increased throughout the period, the substantial increase in net income in 2025 appears to be the primary driver of the ROA improvement. The relatively stable ROA in earlier years suggests a balanced relationship between profit generation and asset investment.
In conclusion, the ROA demonstrates a positive trend, particularly in the most recent year. This suggests increasing efficiency in utilizing assets to generate profits. Continued monitoring of this metric, alongside its underlying components, is recommended to assess the sustainability of this improvement.