Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Coca-Cola Co., profitability ratios
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
| 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
| 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
| 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
| 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
| 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. |