Microsoft Excel LibreOffice Calc

Coca-Cola Co. (KO)


Profitability Analysis

Difficulty: Beginner

Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).


Ratios (Summary)

Coca-Cola Co., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Return on Sales
Gross profit margin 63.05% 62.56% 60.67% 60.53% 61.11%
Operating profit margin 27.31% 21.18% 20.61% 19.70% 21.11%
Net profit margin 20.20% 3.52% 15.59% 16.60% 15.43%
Return on Investment
Return on equity (ROE) 37.89% 7.31% 28.30% 28.77% 23.41%
Return on assets (ROA) 7.73% 1.42% 7.48% 8.16% 7.71%

Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-25).

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.’s gross profit margin improved from 2016 to 2017 and from 2017 to 2018.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Coca-Cola Co.’s operating profit margin improved from 2016 to 2017 and from 2017 to 2018.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Coca-Cola Co.’s net profit margin deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Coca-Cola Co.’s ROE deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
ROA A profitability ratio calculated as net income divided by total assets. Coca-Cola Co.’s ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Gross Profit Margin

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Gross profit 20,086  22,154  25,398  26,812  28,109 
Net operating revenues 31,856  35,410  41,863  44,294  45,998 
Ratio
Gross profit margin1 63.05% 62.56% 60.67% 60.53% 61.11%
Benchmarks
Gross Profit Margin, Competitors
PepsiCo Inc. 54.56% 54.69% 55.08% 54.99% 53.69%

Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-25).

2018 Calculations

1 Gross profit margin = 100 × Gross profit ÷ Net operating revenues
= 100 × 20,086 ÷ 31,856 = 63.05%

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.’s gross profit margin improved from 2016 to 2017 and from 2017 to 2018.

Operating Profit Margin

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Operating income 8,700  7,501  8,626  8,728  9,708 
Net operating revenues 31,856  35,410  41,863  44,294  45,998 
Ratio
Operating profit margin1 27.31% 21.18% 20.61% 19.70% 21.11%
Benchmarks
Operating Profit Margin, Competitors
PepsiCo Inc. 15.64% 16.54% 15.58% 13.25% 14.37%
Operating Profit Margin, Sector
Beverages 19.49% 18.20% 17.59% 15.91% 17.12%
Operating Profit Margin, Industry
Consumer Goods 11.61% 13.53% 12.76% 11.70% 10.63%

Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-25).

2018 Calculations

1 Operating profit margin = 100 × Operating income ÷ Net operating revenues
= 100 × 8,700 ÷ 31,856 = 27.31%

Ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Coca-Cola Co.’s operating profit margin improved from 2016 to 2017 and from 2017 to 2018.

Net Profit Margin

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Net income attributable to shareowners of The Coca-Cola Company 6,434  1,248  6,527  7,351  7,098 
Net operating revenues 31,856  35,410  41,863  44,294  45,998 
Ratio
Net profit margin1 20.20% 3.52% 15.59% 16.60% 15.43%
Benchmarks
Net Profit Margin, Competitors
PepsiCo Inc. 19.35% 7.65% 10.08% 8.65% 9.77%
Net Profit Margin, Sector
Beverages 19.63% 6.17% 12.28% 11.93% 12.08%
Net Profit Margin, Industry
Consumer Goods 10.05% 9.60% 10.51% 9.11% 7.86%

Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-25).

2018 Calculations

1 Net profit margin = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Net operating revenues
= 100 × 6,434 ÷ 31,856 = 20.20%

Ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Coca-Cola Co.’s net profit margin deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Return on Equity (ROE)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Net income attributable to shareowners of The Coca-Cola Company 6,434  1,248  6,527  7,351  7,098 
Equity attributable to shareowners of The Coca-Cola Company 16,981  17,072  23,062  25,554  30,320 
Ratio
ROE1 37.89% 7.31% 28.30% 28.77% 23.41%
Benchmarks
ROE, Competitors
PepsiCo Inc. 86.20% 44.60% 57.04% 45.73% 37.35%
ROE, Sector
Beverages 60.16% 21.83% 37.64% 34.16% 28.50%
ROE, Industry
Consumer Goods 32.91% 24.66% 28.02% 24.45% 25.80%

Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-25).

2018 Calculations

1 ROE = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Equity attributable to shareowners of The Coca-Cola Company
= 100 × 6,434 ÷ 16,981 = 37.89%

Ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Coca-Cola Co.’s ROE deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Return on Assets (ROA)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Net income attributable to shareowners of The Coca-Cola Company 6,434  1,248  6,527  7,351  7,098 
Total assets 83,216  87,896  87,270  90,093  92,023 
Ratio
ROA1 7.73% 1.42% 7.48% 8.16% 7.71%
Benchmarks
ROA, Competitors
PepsiCo Inc. 16.12% 6.09% 8.54% 7.83% 9.24%
ROA, Sector
Beverages 11.78% 3.64% 7.97% 8.01% 8.37%
ROA, Industry
Consumer Goods 6.64% 5.95% 6.83% 6.19% 6.15%

Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-25).

2018 Calculations

1 ROA = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Total assets
= 100 × 6,434 ÷ 83,216 = 7.73%

Ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Coca-Cola Co.’s ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.