Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Coca-Cola Co. (NYSE:KO)

Analysis of Profitability Ratios

Beginner level

Profitability Ratios (Summary)

Coca-Cola Co., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Return on Sales
Gross profit margin 59.31% 60.77% 63.05% 62.56% 60.67%
Operating profit margin 27.25% 27.06% 27.31% 21.18% 20.61%
Net profit margin 23.47% 23.94% 20.20% 3.52% 15.59%
Return on Investment
Return on equity (ROE) 40.14% 46.99% 37.89% 7.31% 28.30%
Return on assets (ROA) 8.87% 10.33% 7.73% 1.42% 7.48%

Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24).

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.’s gross profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Coca-Cola Co.’s operating profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Coca-Cola Co.’s net profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Coca-Cola Co.’s ROE improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.
ROA A profitability ratio calculated as net income divided by total assets. Coca-Cola Co.’s ROA improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Gross Profit Margin

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Gross profit 19,581  22,647  20,086  22,154  25,398 
Net operating revenues 33,014  37,266  31,856  35,410  41,863 
Profitability Ratio
Gross profit margin1 59.31% 60.77% 63.05% 62.56% 60.67%
Benchmarks
Gross Profit Margin, Competitors2
Altria Group Inc. 49.80% 50.62% 48.31% 46.73% 45.02%
Mondelēz International Inc. 39.30% 39.96% 39.91% 38.87% 39.07%
PepsiCo Inc. 54.82% 55.13% 54.56% 54.69% 55.08%
Philip Morris International Inc. 25.15% 24.76% 23.64% 23.45% 23.07%

Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24).

1 2020 Calculation
Gross profit margin = 100 × Gross profit ÷ Net operating revenues
= 100 × 19,581 ÷ 33,014 = 59.31%

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.’s gross profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Operating Profit Margin

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Operating income 8,997  10,086  8,700  7,501  8,626 
Net operating revenues 33,014  37,266  31,856  35,410  41,863 
Profitability Ratio
Operating profit margin1 27.25% 27.06% 27.31% 21.18% 20.61%
Benchmarks
Operating Profit Margin, Competitors2
Altria Group Inc. 41.57% 41.12% 35.94% 37.36% 34.04%
Mondelēz International Inc. 14.50% 14.86% 12.77% 13.54% 9.91%
PepsiCo Inc. 14.32% 15.32% 15.64% 16.54% 15.58%
Philip Morris International Inc. 15.34% 13.51% 14.25% 14.73% 14.43%
Operating Profit Margin, Sector
Food, Beverage & Tobacco 19.59% 19.32% 18.72% 18.63% 17.54%
Operating Profit Margin, Industry
Consumer Staples 9.01% 8.39% 9.08% 9.55% 9.50%

Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24).

1 2020 Calculation
Operating profit margin = 100 × Operating income ÷ Net operating revenues
= 100 × 8,997 ÷ 33,014 = 27.25%

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.’s operating profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.

Net Profit Margin

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income attributable to shareowners of The Coca-Cola Company 7,747  8,920  6,434  1,248  6,527 
Net operating revenues 33,014  37,266  31,856  35,410  41,863 
Profitability Ratio
Net profit margin1 23.47% 23.94% 20.20% 3.52% 15.59%
Benchmarks
Net Profit Margin, Competitors2
Altria Group Inc. 17.08% -5.15% 27.45% 39.97% 55.31%
Mondelēz International Inc. 13.37% 14.96% 13.03% 11.28% 6.40%
PepsiCo Inc. 10.12% 10.89% 19.35% 7.65% 10.08%
Philip Morris International Inc. 10.59% 9.22% 9.91% 7.73% 9.30%
Net Profit Margin, Sector
Food, Beverage & Tobacco 13.33% 11.14% 16.34% 11.06% 15.44%
Net Profit Margin, Industry
Consumer Staples 6.51% 4.48% 6.62% 6.49% 7.28%

Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24).

1 2020 Calculation
Net profit margin = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Net operating revenues
= 100 × 7,747 ÷ 33,014 = 23.47%

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.’s net profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Return on Equity (ROE)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income attributable to shareowners of The Coca-Cola Company 7,747  8,920  6,434  1,248  6,527 
Equity attributable to shareowners of The Coca-Cola Company 19,299  18,981  16,981  17,072  23,062 
Profitability Ratio
ROE1 40.14% 46.99% 37.89% 7.31% 28.30%
Benchmarks
ROE, Competitors2
Altria Group Inc. 157.34% -20.78% 47.09% 66.48% 111.50%
Mondelēz International Inc. 12.89% 14.19% 13.19% 11.19% 6.59%
PepsiCo Inc. 52.92% 49.47% 86.20% 44.60% 57.04%
Philip Morris International Inc.
ROE, Sector
Food, Beverage & Tobacco 61.15% 46.68% 62.57% 44.08% 60.14%
ROE, Industry
Consumer Staples 34.01% 22.74% 30.65% 29.30% 31.42%

Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24).

1 2020 Calculation
ROE = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Equity attributable to shareowners of The Coca-Cola Company
= 100 × 7,747 ÷ 19,299 = 40.14%

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.’s ROE improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Return on Assets (ROA)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income attributable to shareowners of The Coca-Cola Company 7,747  8,920  6,434  1,248  6,527 
Total assets 87,296  86,381  83,216  87,896  87,270 
Profitability Ratio
ROA1 8.87% 10.33% 7.73% 1.42% 7.48%
Benchmarks
ROA, Competitors2
Altria Group Inc. 9.42% -2.62% 12.51% 23.66% 31.00%
Mondelēz International Inc. 5.24% 6.00% 5.39% 4.63% 2.70%
PepsiCo Inc. 7.66% 9.31% 16.12% 6.09% 8.54%
Philip Morris International Inc. 17.98% 16.76% 19.88% 14.05% 18.91%
ROA, Sector
Food, Beverage & Tobacco 9.09% 8.08% 11.66% 7.98% 11.68%
ROA, Industry
Consumer Staples 8.42% 6.08% 8.97% 8.64% 9.73%

Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24).

1 2020 Calculation
ROA = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Total assets
= 100 × 7,747 ÷ 87,296 = 8.87%

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.’s ROA improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.