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: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The analysis of the financial ratios over the five-year period reveals several noteworthy trends in profitability and efficiency metrics.
- Gross Profit Margin
- The gross profit margin shows a generally stable and slightly improving trend, increasing from 59.31% in 2020 to 61.06% in 2024. There was a small decline in 2022 to 58.14%, but margins recovered and continued to improve, suggesting effective management of cost of goods sold relative to revenue.
- Operating Profit Margin
- The operating profit margin exhibits a declining trend, decreasing steadily from 27.25% in 2020 to 21.23% in 2024. This consistent decrease may indicate rising operating expenses or increased costs in other operational areas, which have been outpacing revenue growth despite improvements in gross margins.
- Net Profit Margin
- The net profit margin fluctuates but remains relatively stable, starting at 23.47% in 2020, increasing to a peak of 25.28% in 2021, then moderating to 22.59% by 2024. Although there is some volatility, the margin remains above 22%, reflecting sustained overall profitability after all expenses, taxes, and interest.
- Return on Equity (ROE)
- Return on equity is strong and shows a general upward trend, growing from 40.14% in 2020 to 42.77% in 2024. Despite a dip in 2022 to 39.59%, ROE rebounds, indicating efficient use of shareholder equity to generate profit. This suggests effective capital management and profitability at the equity level.
- Return on Assets (ROA)
- Return on assets remains relatively stable with a slight improving trend, rising from 8.87% in 2020 to a peak of 10.97% in 2023 before a minor reduction to 10.57% in 2024. This trend indicates consistent asset utilization in generating income, reflecting satisfactory operational efficiency.
Return on Sales
Return on Investment
Gross Profit Margin
Coca-Cola Co., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 28,737) | 27,234) | 25,004) | 23,298) | 19,581) | |
| Net operating revenues | 47,061) | 45,754) | 43,004) | 38,655) | 33,014) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 61.06% | 59.52% | 58.14% | 60.27% | 59.31% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Mondelēz International Inc. | 39.12% | 38.22% | 35.92% | 39.19% | 39.30% | |
| PepsiCo Inc. | 54.55% | 54.21% | 53.03% | 53.35% | 54.82% | |
| Philip Morris International Inc. | 64.81% | 63.35% | 64.10% | 68.06% | 66.65% | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Gross profit margin = 100 × Gross profit ÷ Net operating revenues
= 100 × 28,737 ÷ 47,061 = 61.06%
2 Click competitor name to see calculations.
- Gross Profit
- The gross profit exhibits a consistent upward trend over the five-year period, increasing from 19,581 million US dollars in 2020 to 28,737 million US dollars in 2024. This indicates a steady enhancement in the company’s ability to generate profit from its core activities before accounting for other expenses.
- Net Operating Revenues
- Net operating revenues also show a continuous increase year over year. Starting at 33,014 million US dollars in 2020, revenues grow to 47,061 million US dollars by 2024. The steady rise suggests expanding business operations and successful revenue generation strategies during the period.
- Gross Profit Margin
- The gross profit margin fluctuates slightly but generally maintains a strong position around 59% to 61%. The margin starts at 59.31% in 2020, peaks at 60.27% in 2021, dips to 58.14% in 2022, then recovers to 61.06% by 2024. This indicates effective cost management relative to revenue, with an overall improvement in profitability efficiency over the analyzed timeframe.
Operating Profit Margin
Coca-Cola Co., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 9,992) | 11,311) | 10,909) | 10,308) | 8,997) | |
| Net operating revenues | 47,061) | 45,754) | 43,004) | 38,655) | 33,014) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 21.23% | 24.72% | 25.37% | 26.67% | 27.25% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Mondelēz International Inc. | 17.41% | 15.28% | 11.22% | 16.20% | 14.50% | |
| PepsiCo Inc. | 14.03% | 13.10% | 13.33% | 14.04% | 14.32% | |
| Philip Morris International Inc. | 35.38% | 32.85% | 38.56% | 41.32% | 40.66% | |
| Operating Profit Margin, Sector | ||||||
| Food, Beverage & Tobacco | 19.99% | 19.36% | 19.83% | 21.93% | 21.81% | |
| Operating Profit Margin, Industry | ||||||
| Consumer Staples | 7.96% | 7.31% | 8.44% | 8.48% | 8.17% | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Operating profit margin = 100 × Operating income ÷ Net operating revenues
= 100 × 9,992 ÷ 47,061 = 21.23%
2 Click competitor name to see calculations.
- Net Operating Revenues
- The net operating revenues show a consistent upward trend from 2020 to 2024. Starting at 33,014 million US dollars in 2020, revenues increased notably each year, reaching 47,061 million US dollars by 2024. This reflects steady revenue growth over the period.
- Operating Income
- Operating income also increased from 8,997 million US dollars in 2020 to a peak of 11,311 million US dollars in 2023, indicating improvement in profitability during the first four years. However, in 2024, operating income declined to 9,992 million US dollars, showing a reversal from the prior upward trend.
- Operating Profit Margin
- The operating profit margin demonstrates a gradual decline throughout the period, starting from 27.25% in 2020 and decreasing each year to reach 21.23% in 2024. This decline suggests that, despite growth in revenues, the efficiency or profitability relative to revenues is diminishing. The reduction in profit margin is particularly pronounced in 2024, aligning with the decrease in operating income despite higher revenues.
- Overall Insights
- While the company’s revenues expanded steadily over the five-year span, operating income and profit margins indicate less favorable profitability trends in the later years. The decline in both operating income and margin in 2024, despite record-high revenues, points to increased costs or other factors eroding profitability. This divergence between revenue growth and profit reduction warrants further analysis into cost structure or operational efficiency to identify underlying causes and potential corrective actions.
Net Profit Margin
Coca-Cola Co., net profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to shareowners of The Coca-Cola Company | 10,631) | 10,714) | 9,542) | 9,771) | 7,747) | |
| Net operating revenues | 47,061) | 45,754) | 43,004) | 38,655) | 33,014) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 22.59% | 23.42% | 22.19% | 25.28% | 23.47% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Mondelēz International Inc. | 12.65% | 13.77% | 8.63% | 14.97% | 13.37% | |
| PepsiCo Inc. | 10.43% | 9.92% | 10.31% | 9.59% | 10.12% | |
| Philip Morris International Inc. | 18.63% | 22.21% | 28.49% | 29.00% | 28.08% | |
| Net Profit Margin, Sector | ||||||
| Food, Beverage & Tobacco | 14.95% | 15.62% | 15.68% | 17.28% | 16.69% | |
| Net Profit Margin, Industry | ||||||
| Consumer Staples | 5.69% | 5.47% | 6.11% | 6.21% | 6.22% | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net profit margin = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Net operating revenues
= 100 × 10,631 ÷ 47,061 = 22.59%
2 Click competitor name to see calculations.
- Net income attributable to shareowners
- The net income shows an overall increasing trend from 2020 through 2024, rising from 7,747 million US dollars in 2020 to 10,631 million US dollars in 2024. There was a notable increase between 2020 and 2021, followed by a slight dip in 2022. However, the net income rebounded in 2023 to reach a peak of 10,714 million US dollars before experiencing a marginal decline in 2024.
- Net operating revenues
- Net operating revenues demonstrate consistent growth throughout the period under review. Starting at 33,014 million US dollars in 2020, revenues increased annually, reaching 47,061 million US dollars in 2024. The most substantial growth occurred between 2020 and 2021 and continued with steady increments each subsequent year.
- Net profit margin
- The net profit margin fluctuated during the observed timeframe. It increased from 23.47% in 2020 to 25.28% in 2021, indicating improved profitability. This was followed by a decline to 22.19% in 2022. Margins slightly recovered to 23.42% in 2023 but decreased again to 22.59% in 2024. Despite variations, the margin remained above 22% across all years, reflecting relatively stable profitability levels.
- Summary of financial performance
- The data indicates a generally positive financial performance characterized by steadily increasing revenues and rising net income over five years. The fluctuations in net profit margin suggest varying cost management or pricing dynamics, but profitability remains robust. The rebound in net income after 2022, aligned with continuous revenue growth, may signal effective strategic adjustments or favorable market conditions in recent periods.
Return on Equity (ROE)
Coca-Cola Co., ROE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to shareowners of The Coca-Cola Company | 10,631) | 10,714) | 9,542) | 9,771) | 7,747) | |
| Equity attributable to shareowners of The Coca-Cola Company | 24,856) | 25,941) | 24,105) | 22,999) | 19,299) | |
| Profitability Ratio | ||||||
| ROE1 | 42.77% | 41.30% | 39.59% | 42.48% | 40.14% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Mondelēz International Inc. | 17.12% | 17.50% | 10.11% | 15.21% | 12.89% | |
| PepsiCo Inc. | 53.09% | 49.04% | 51.96% | 47.48% | 52.92% | |
| Philip Morris International Inc. | — | — | — | — | — | |
| ROE, Sector | ||||||
| Food, Beverage & Tobacco | 54.89% | 52.90% | 51.06% | 53.84% | 55.44% | |
| ROE, Industry | ||||||
| Consumer Staples | 32.18% | 30.71% | 32.10% | 31.40% | 30.98% | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
ROE = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Equity attributable to shareowners of The Coca-Cola Company
= 100 × 10,631 ÷ 24,856 = 42.77%
2 Click competitor name to see calculations.
- Net Income Attributable to Shareowners
- Net income demonstrated a generally positive trajectory over the observed periods. Starting at 7,747 million US dollars in 2020, it increased significantly to 9,771 million in 2021. Although there was a slight dip in 2022 down to 9,542 million, net income rebounded in 2023 to 10,714 million, before experiencing a marginal decline to 10,631 million in 2024. Overall, the company's profitability shows resilience with a clear upward trend over the five-year span.
- Equity Attributable to Shareowners
- Equity exhibited consistent growth from 19,299 million US dollars in 2020 to 22,999 million in 2021, continuing to rise in 2022 and 2023, reaching 24,105 million and 25,941 million respectively. However, in 2024, equity slightly decreased to 24,856 million. Despite this modest reduction in the final period, the overall pattern reflects strengthening equity capital over the medium term.
- Return on Equity (ROE)
- The return on equity metric maintained a strong performance throughout the timeframe. Beginning at 40.14% in 2020, ROE increased to 42.48% in 2021, then mildly decreased to 39.59% in 2022. In the subsequent years, it improved again to 41.3% in 2023 and reached the highest point of 42.77% in 2024. This indicates sustained efficiency in generating profits from shareholders' equity.
- Summary Insights
- Overall, the financial data reflects solid profitability and growth in shareholder equity, complemented by consistently strong returns on equity. While minor fluctuations are present, notably in net income and equity in the later years, the trends suggest effective financial management and stable value creation for shareholders over the period examined.
Return on Assets (ROA)
Coca-Cola Co., ROA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to shareowners of The Coca-Cola Company | 10,631) | 10,714) | 9,542) | 9,771) | 7,747) | |
| Total assets | 100,549) | 97,703) | 92,763) | 94,354) | 87,296) | |
| Profitability Ratio | ||||||
| ROA1 | 10.57% | 10.97% | 10.29% | 10.36% | 8.87% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Mondelēz International Inc. | 6.73% | 6.95% | 3.82% | 6.41% | 5.24% | |
| PepsiCo Inc. | 9.63% | 9.03% | 9.67% | 8.25% | 7.66% | |
| Philip Morris International Inc. | 11.42% | 11.96% | 14.67% | 22.06% | 17.98% | |
| ROA, Sector | ||||||
| Food, Beverage & Tobacco | 9.65% | 9.72% | 9.51% | 10.44% | 9.04% | |
| ROA, Industry | ||||||
| Consumer Staples | 8.89% | 8.28% | 8.95% | 8.75% | 8.24% | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
ROA = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Total assets
= 100 × 10,631 ÷ 100,549 = 10.57%
2 Click competitor name to see calculations.
- Net Income Attributable to Shareowners
- The net income shows an overall increasing trend from 2020 to 2024. Starting at $7,747 million in 2020, it increased substantially to $9,771 million in 2021. After a slight decrease to $9,542 million in 2022, the net income rose again to a peak of $10,714 million in 2023, followed by a minor decline to $10,631 million in 2024. This pattern illustrates a generally strong profitability with short-term fluctuations.
- Total Assets
- Total assets exhibit a consistent upward trend over the five-year period. Beginning with $87,296 million in 2020, assets grew steadily each year, reaching $100,549 million by the end of 2024. The gradual asset growth suggests ongoing investments or accumulation of resources supporting business expansion or operational needs.
- Return on Assets (ROA)
- The ROA percentage displayed a positive trend, indicating improving efficiency in utilizing assets to generate profits. Starting at 8.87% in 2020, ROA increased to 10.36% in 2021, slightly decreased to 10.29% in 2022, then rose to 10.97% in 2023 before settling at 10.57% in 2024. This pattern reflects effective management of assets despite some annual variability.
- Overall Insights
- The financial data reflects sustained growth and profitability with net income and total assets increasing steadily over the analyzed period. The ROA trend reinforces that the company has maintained or improved operational efficiency. Minor fluctuations in net income and ROA do not significantly disrupt the upward trajectory, suggesting resilience in earnings and asset utilization capability.