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, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Return on Sales
Gross profit margin 58.14% 60.27% 59.31% 60.77% 63.05%
Operating profit margin 25.37% 26.67% 27.25% 27.06% 27.31%
Net profit margin 22.19% 25.28% 23.47% 23.94% 20.20%
Return on Investment
Return on equity (ROE) 39.59% 42.48% 40.14% 46.99% 37.89%
Return on assets (ROA) 10.29% 10.36% 8.87% 10.33% 7.73%

Based on: 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), 10-K (reporting date: 2018-12-31).

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 improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Coca-Cola Co. operating profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Coca-Cola Co. net profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Coca-Cola Co. ROE improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
ROA A profitability ratio calculated as net income divided by total assets. Coca-Cola Co. ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Gross Profit Margin

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

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Gross profit 25,004 23,298 19,581 22,647 20,086
Net operating revenues 43,004 38,655 33,014 37,266 31,856
Profitability Ratio
Gross profit margin1 58.14% 60.27% 59.31% 60.77% 63.05%
Benchmarks
Gross Profit Margin, Competitors2
PepsiCo Inc. 53.03% 53.35% 54.82% 55.13% 54.56%

Based on: 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), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Gross profit margin = 100 × Gross profit ÷ Net operating revenues
= 100 × 25,004 ÷ 43,004 = 58.14%

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 improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Operating Profit Margin

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

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Operating income 10,909 10,308 8,997 10,086 8,700
Net operating revenues 43,004 38,655 33,014 37,266 31,856
Profitability Ratio
Operating profit margin1 25.37% 26.67% 27.25% 27.06% 27.31%
Benchmarks
Operating Profit Margin, Competitors2
PepsiCo Inc. 13.33% 14.04% 14.32% 15.32% 15.64%
Operating Profit Margin, Sector
Food, Beverage & Tobacco 17.33% 18.18% 18.45% 19.51% 19.49%
Operating Profit Margin, Industry
Consumer Staples 7.72% 7.51% 7.00% 6.45% 7.26%

Based on: 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), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Operating profit margin = 100 × Operating income ÷ Net operating revenues
= 100 × 10,909 ÷ 43,004 = 25.37%

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 2020 to 2021 and from 2021 to 2022.

Net Profit Margin

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

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Net income attributable to shareowners of The Coca-Cola Company 9,542 9,771 7,747 8,920 6,434
Net operating revenues 43,004 38,655 33,014 37,266 31,856
Profitability Ratio
Net profit margin1 22.19% 25.28% 23.47% 23.94% 20.20%
Benchmarks
Net Profit Margin, Competitors2
PepsiCo Inc. 10.31% 9.59% 10.12% 10.89% 19.35%
Net Profit Margin, Sector
Food, Beverage & Tobacco 14.26% 14.72% 14.38% 15.55% 19.63%
Net Profit Margin, Industry
Consumer Staples 5.57% 5.55% 5.37% 3.88% 5.21%

Based on: 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), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
Net profit margin = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Net operating revenues
= 100 × 9,542 ÷ 43,004 = 22.19%

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 improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Return on Equity (ROE)

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

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Net income attributable to shareowners of The Coca-Cola Company 9,542 9,771 7,747 8,920 6,434
Equity attributable to shareowners of The Coca-Cola Company 24,105 22,999 19,299 18,981 16,981
Profitability Ratio
ROE1 39.59% 42.48% 40.14% 46.99% 37.89%
Benchmarks
ROE, Competitors2
PepsiCo Inc. 51.96% 47.48% 52.92% 49.47% 86.20%
ROE, Sector
Food, Beverage & Tobacco 44.73% 44.54% 45.39% 48.08% 60.16%
ROE, Industry
Consumer Staples 29.78% 28.48% 26.94% 19.27% 24.00%

Based on: 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), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
ROE = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Equity attributable to shareowners of The Coca-Cola Company
= 100 × 9,542 ÷ 24,105 = 39.59%

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 improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Return on Assets (ROA)

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

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Net income attributable to shareowners of The Coca-Cola Company 9,542 9,771 7,747 8,920 6,434
Total assets 92,763 94,354 87,296 86,381 83,216
Profitability Ratio
ROA1 10.29% 10.36% 8.87% 10.33% 7.73%
Benchmarks
ROA, Competitors2
PepsiCo Inc. 9.67% 8.25% 7.66% 9.31% 16.12%
ROA, Sector
Food, Beverage & Tobacco 9.98% 9.31% 8.25% 9.84% 11.78%
ROA, Industry
Consumer Staples 9.05% 8.38% 7.76% 6.00% 8.03%

Based on: 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), 10-K (reporting date: 2018-12-31).

1 2022 Calculation
ROA = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Total assets
= 100 × 9,542 ÷ 92,763 = 10.29%

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 improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.