Analysis of Reportable Segments
Coca-Cola Co. operates in 6 segments: Europe, Middle East and Africa; Latin America; North America; Asia Pacific; Global Ventures; and Bottling Investments.
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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Price to FCFE (P/FCFE)
- Dividend Discount Model (DDM)
- Operating Profit Margin since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Debt
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Segment Profit Margin
Coca-Cola Co., profit margin by reportable segment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Europe, Middle East and Africa | |||||
| Latin America | |||||
| North America | |||||
| Asia Pacific | |||||
| Global Ventures | |||||
| Bottling Investments |
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 annual reportable segment profit margin data reveals distinct trends and variations across different geographic and business segments over the five-year period.
- Europe, Middle East and Africa
- The profit margin in this region shows a consistent downward trend, declining from 55.79% in 2020 to 50.79% in 2024. This steady decrease suggests potential challenges in maintaining profitability, possibly due to increasing costs, pricing pressures, or market dynamics affecting this territory.
- Latin America
- Latin America demonstrates relative stability with fluctuations around the high 50% range. The margin increased from 57.19% in 2020 to a peak of 61.36% in 2021, followed by slight decreases and a minor recovery, ending at 58.52% in 2024. This indicates overall strong profitability with some volatility potentially driven by regional economic factors.
- North America
- North America shows a general positive progression from 21.78% in 2020 to a peak of 26.44% in 2023, before declining to 23.25% in 2024. The upward trend until 2023 may reflect efficiencies or favorable market conditions, while the subsequent decline could signal emerging challenges or increased competition in the latest period.
- Asia Pacific
- This segment exhibits a clear downward trajectory, with margins decreasing significantly from 45.7% in 2020 to 38.73% in 2024. The sharp decline, especially from 2022 onwards, suggests increased cost pressures or weakening market performance impacting profitability in this region.
- Global Ventures
- The Global Ventures segment shows notable improvement over time, moving from a negative margin of -6.03% in 2020 to a positive 11.47% in 2024. This turnaround indicates either improved operational efficiencies, successful strategic initiatives, or better revenue generation, marking a significant positive shift.
- Bottling Investments
- Profit margins here display volatility, with a rise from 14.33% in 2020 to 22.16% in 2021, followed by a steep drop to 6.17% in 2022, and modest recoveries to 7.97% by 2024. The fluctuations suggest varying performance, possibly influenced by capital investments, operational challenges, or market conditions affecting this segment.
Segment Profit Margin: Europe, Middle East and Africa
Coca-Cola Co.; Europe, Middle East and Africa; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | |||||
| Net operating revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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
Segment profit margin = 100 × Operating income (loss) ÷ Net operating revenues
= 100 × ÷ =
The segment data for Europe, Middle East, and Africa reveals several notable trends from 2020 through 2024. Operating income consistently increased from 3,379 million US dollars in 2020 to a peak of 4,202 million in 2023, before experiencing a slight decline to 4,125 million in 2024. Net operating revenues demonstrated a steady upward trajectory, rising from 6,057 million US dollars in 2020 to 8,122 million by the end of 2024. This indicates sustained growth in sales or service income over the five-year period.
Despite the overall increase in both operating income and revenues, the segment profit margin exhibited a declining trend. Starting at 55.79% in 2020, it gradually decreased each year to reach 50.79% in 2024. This suggests that although revenues and operating income grew, the proportion of profit relative to revenue diminished, potentially indicating increased costs or pricing pressures impacting profitability efficiency within the segment.
- Operating Income
- Increased steadily between 2020 and 2023, with a slight decline observed in 2024.
- Net Operating Revenues
- Exhibited continuous growth across the entire period, highlighting strong revenue expansion.
- Segment Profit Margin
- Experienced a consistent year-over-year decrease, indicating erosion of profitability relative to revenues despite growth in absolute operating income.
Overall, the data indicates robust revenue growth driving higher operating income values, but the segment faces challenges in maintaining its profit margin percentage. This scenario could warrant further investigation into cost control, pricing strategies, or changes in the operating environment influencing margin compression.
Segment Profit Margin: Latin America
Coca-Cola Co.; Latin America; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | |||||
| Net operating revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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
Segment profit margin = 100 × Operating income (loss) ÷ Net operating revenues
= 100 × ÷ =
- Operating Income (Loss)
- The operating income for the Latin America segment has shown a consistent upward trend over the five-year period. Starting at $2,001 million in 2020, it increased each year to reach $3,780 million in 2024. This represents a significant growth, indicating improving profitability within the segment.
- Net Operating Revenues
- Net operating revenues also exhibited a steady increase from $3,499 million in 2020 to $6,459 million in 2024. This nearly doubled revenue suggests strong market performance and expanding business activities in the region.
- Segment Profit Margin
- The profit margin percentage experienced some fluctuations but remained relatively stable overall. It rose from 57.19% in 2020 to a peak of 61.36% in 2021, then saw a decline to 58.45% in 2022. The margin stabilized around 58.87% in 2023 and slightly decreased to 58.52% in 2024. Despite the variability, the margin stayed consistently above 57%, reflecting sustained operational efficiency.
- Summary
- The data reveals strong and consistent growth in both operating income and net operating revenues for the Latin America segment. While the profit margin showed minor fluctuations, it maintained a robust level throughout the period, supporting the overall increase in segment profitability. This pattern indicates effective cost management alongside expanding sales, contributing to enhanced financial performance in the region.
Segment Profit Margin: North America
Coca-Cola Co.; North America; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | |||||
| Net operating revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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
Segment profit margin = 100 × Operating income (loss) ÷ Net operating revenues
= 100 × ÷ =
- Operating Income Trend
- Operating income demonstrated a consistent upward trend from 2020 to 2023, increasing from 2,500 million US dollars in 2020 to a peak of 4,435 million in 2023. However, there was a slight decline in 2024 to 4,336 million US dollars, indicating a potential softening after several years of growth.
- Net Operating Revenues Trend
- Net operating revenues showed steady growth throughout the entire period under review. Starting at 11,477 million US dollars in 2020, revenues climbed annually, reaching 18,649 million US dollars in 2024. This consistent increase reflects an expanding market or improved sales performance in the North America segment.
- Segment Profit Margin Trend
- The segment profit margin experienced fluctuations over the five years. Initially, it improved from 21.78% in 2020 to a high of 26.44% in 2023, signalling enhanced profitability possibly due to operational efficiencies or favorable pricing strategies. However, in 2024 the margin declined to 23.25%, which may indicate rising costs or increased competitive pressures impacting profitability despite the higher revenue base.
- Overall Insights
- The data reveals strong revenue growth complemented by generally increasing operating income and profit margins through most of the period, up to 2023. The slight dip in operating income and profit margin in 2024, despite the highest recorded revenues, suggests emerging challenges in maintaining profitability levels. This could warrant further analysis into cost structures, market conditions, or other external factors influencing segment performance.
Segment Profit Margin: Asia Pacific
Coca-Cola Co.; Asia Pacific; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | |||||
| Net operating revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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
Segment profit margin = 100 × Operating income (loss) ÷ Net operating revenues
= 100 × ÷ =
- Operating Income (Loss)
- The operating income exhibited a general fluctuation over the five-year period. It increased from 2,158 million US dollars in 2020 to a peak of 2,350 million in 2021. Following this peak, there was a slight decline to 2,303 million in 2022, then a more substantial decrease to 2,040 million in 2023. However, in 2024, operating income rebounded moderately to 2,148 million, indicating partial recovery but still below the 2020 and 2021 levels.
- Net Operating Revenues
- The net operating revenues showed a consistent upward trend throughout the period. Starting at 4,722 million US dollars in 2020, revenues increased year over year, reaching 5,546 million in 2024. This steady growth suggests a sustained increase in sales or pricing power within the Asia Pacific segment.
- Segment Profit Margin
- The segment profit margin demonstrated a declining trend, decreasing from 45.7% in 2020 to 38.73% in 2024. The margin fell notably in 2023 to 37.4%, the lowest point in the observed period, before experiencing a slight improvement in 2024. This decline suggests increasing costs, pricing pressures, or changes in product mix impacting profitability despite rising revenues.
Segment Profit Margin: Global Ventures
Coca-Cola Co.; Global Ventures; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | |||||
| Net operating revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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
Segment profit margin = 100 × Operating income (loss) ÷ Net operating revenues
= 100 × ÷ =
- Operating Income (Loss)
- The operating income experienced significant fluctuations over the analyzed period. In 2020, the segment reported a loss of $120 million. However, this figure swung to a positive territory in 2021 with an operating income of $310 million. Following this, there was a decline in 2022 to $185 million, but the upward trend resumed thereafter, reaching $329 million in 2023 and further increasing to $359 million in 2024. Overall, the segment demonstrated a recovery and growth in operating income after the initial loss in 2020.
- Net Operating Revenues
- Net operating revenues showed a steady upward trajectory throughout the period. Starting from $1,991 million in 2020, revenues rose significantly to $2,805 million in 2021, with subsequent increases each year—$2,843 million in 2022, $3,064 million in 2023, and $3,129 million in 2024. This consistent growth indicates expansion in sales or pricing power within the segment over the years.
- Segment Profit Margin
- The segment profit margin closely reflected changes in operating income relative to revenues. It showed a negative margin of -6.03% in 2020, consistent with the operating loss. This was followed by a sharp improvement to 11.05% in 2021. Although the margin decreased to 6.51% in 2022, it increased again to 10.74% in 2023 and further to 11.47% in 2024. The pattern highlights a recovery and strengthening in profitability, indicating better cost management or improved operational efficiency alongside revenue growth.
Segment Profit Margin: Bottling Investments
Coca-Cola Co.; Bottling Investments; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | |||||
| Net operating revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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
Segment profit margin = 100 × Operating income (loss) ÷ Net operating revenues
= 100 × ÷ =
- Operating Income (Loss)
- The operating income shows considerable fluctuation over the period. It increased significantly from 898 million US dollars in 2020 to 1,596 million in 2021. However, this was followed by a sharp decline to 487 million in 2022. There was a modest recovery in 2023 to 578 million, but the figure dropped again in 2024 to 496 million.
- Net Operating Revenues
- Net operating revenues generally exhibited an upward trend from 6,265 million US dollars in 2020 to 7,891 million in 2022. This was followed by a slight decrease in 2023 to 7,860 million and a more pronounced decline in 2024 to 6,223 million. This pattern suggests some volatility in revenue generation, with a peak in 2022.
- Segment Profit Margin
- The segment profit margin mirrored the trend in operating income, reaching its highest point at 22.16% in 2021. Afterward, it experienced a significant decline to 6.17% in 2022. The margin showed a modest improvement in 2023 and 2024, rising to 7.35% and 7.97% respectively, but remained well below the peak observed in 2021.
- Summary of Trends
- Overall, the data shows a peak performance year in 2021, characterized by the highest operating income, segment profit margin, and elevated net operating revenues. Following that year, the segment experienced notable declines in profitability and revenue, with some stabilization but no return to previous peak levels as of 2024. This indicates potential challenges affecting profitability and revenues post-2021, with partial recovery but continued pressure on margins.
Segment Capital Expenditures to Depreciation
Coca-Cola Co., capital expenditures to depreciation by reportable segment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Europe, Middle East and Africa | |||||
| Latin America | |||||
| North America | |||||
| Asia Pacific | |||||
| Global Ventures | |||||
| Bottling Investments |
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 data reveals fluctuating trends across different geographic and business segments with respect to the ratio of capital expenditures to depreciation over the five-year period.
- Europe, Middle East and Africa
- The ratio exhibited a general increase from 0.31 in 2020 to a peak of 0.79 in 2022, followed by a decline to 0.32 in 2024. This pattern suggests higher investment activity relative to asset depreciation in the middle years, with a subsequent reduction nearing the initial level by the end of the period.
- Latin America
- This segment showed relatively low ratios throughout the period, starting at 0.13 in 2020 and remaining below 0.1 for most years. The ratio dipped noticeably to 0.02 in 2023 before a slight increase to 0.03 in 2024. This indicates generally modest capital expenditures compared to depreciation, with minimal volatility.
- North America
- A consistent upward trajectory was evident, with the ratio rising from 0.41 in 2020 to a substantial 1.85 in 2024. This denotes a strong and increasing focus on capital investment relative to asset wear and tear within the region.
- Asia Pacific
- The ratio was marked by volatility, starting at 0.43 in 2020, sharply increasing to 1.33 in 2021, then declining again to values in the range of 0.38 to 0.46 during the remaining years. This irregular pattern suggests variable capital expenditure intensity over the period.
- Global Ventures
- The ratio began at a high 2.14 in 2020, showed a slight decrease to around 2.11 in 2021, followed by a decline to 1.28 in 2022. Subsequently, the ratio increased again to 1.65 by 2024. The figures imply consistently high investment levels relative to depreciation, with some moderation and then partial recovery.
- Bottling Investments
- This segment demonstrated a steady and notable increase from 0.86 in 2020 to 2.3 in 2024, indicating a growing emphasis on capital expenditures relative to depreciation, potentially reflecting expansion or modernization efforts.
Overall, capital expenditure to depreciation ratios vary significantly by segment. North America and Bottling Investments stand out for their consistent growth and increasing investment activity. Global Ventures maintain high ratios throughout but with some fluctuation. Europe, Middle East and Africa, as well as Asia Pacific, show more inconsistent trends, while Latin America remains relatively stable at low levels. The data reflects diverse strategic investment priorities and asset renewal rates across the company's segments over the analyzed period.
Segment Capital Expenditures to Depreciation: Europe, Middle East and Africa
Coca-Cola Co.; Europe, Middle East and Africa; segment capital expenditures to depreciation calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =
The segment data for Europe, Middle East, and Africa exhibits several notable trends across the provided periods from 2020 to 2024 in terms of capital expenditures, depreciation and amortization, and their ratio.
- Capital Expenditures
- The capital expenditures showed a general increase from 27 million US dollars in 2020 to a peak of 50 million US dollars in 2022. Following this peak, there was a decline to 43 million in 2023 and a more pronounced decrease to 18 million in 2024. This pattern indicates a substantial investment surge until 2022, succeeded by a reduction in spending in the subsequent years.
- Depreciation and Amortization
- A steady decline is observed in depreciation and amortization expenses over the same period. From 86 million US dollars in 2020, these expenses decreased consistently each year to reach 57 million in 2024. The downward trend suggests either the aging of capital assets, leading to lower depreciation charges, or possible asset disposals or impairments that reduce the amortization base.
- Segment Capital Expenditures to Depreciation Ratio
- This ratio reflects capital expenditures relative to depreciation charges. It rises from 0.31 in 2020 to 0.79 in 2022, indicating that capital expenditures were growing at a faster rate than depreciation during this period. Post-2022, the ratio declines to 0.73 in 2023 and sharply to 0.32 in 2024, closely approaching the initial ratio of 2020. This suggests a normalization or scaling back of investment activities relative to the existing asset base over the latter years.
Overall, the data suggests an investment cycle wherein aggressive capital expenditures were made up to 2022, possibly for expansion or asset renewal, followed by a retrenchment period with reduced investment outlays. Depreciation trends imply a gradual decrease in charges, which could be due to the aging of assets purchased before or during the investment peak. The capital expenditure to depreciation ratio underscores this dynamic, highlighting phases of increased asset investment followed by a moderation phase.
Segment Capital Expenditures to Depreciation: Latin America
Coca-Cola Co.; Latin America; segment capital expenditures to depreciation calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =
- Capital Expenditures
- The capital expenditures in the Latin America segment show a general declining trend from 2020 to 2024. Starting at 6 million US dollars in 2020, expenditures decreased significantly to 2 million in 2021, slightly recovering to 4 million in 2022, and then dropping again to 1 million in both 2023 and 2024. This indicates a reduction in investment or maintenance spending over the period examined.
- Depreciation and Amortization
- Depreciation and amortization expenses exhibit variability during the five-year period. The amount decreased from 45 million US dollars in 2020 to 39 million in both 2021 and 2022, rose notably to 48 million in 2023, and then fell sharply to 29 million in 2024. This fluctuation suggests changes either in the capital asset base or accounting estimates affecting amortization schedules.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation consistently remains below 0.15, highlighting relatively low reinvestment compared to the consumption of fixed assets. The ratio declined from 0.13 in 2020 to a low of 0.02 in 2023, with a slight rise to 0.03 in 2024. This pattern supports the observation of limited capital expenditure relative to asset depreciation, possibly indicating conservative investment policies or asset base optimization.
- Summary
- Overall, the financial data for the Latin America segment reveals a marked decrease in capital expenditures accompanied by fluctuating depreciation and amortization expenses. The persistently low capital expenditure to depreciation ratio suggests the segment may be underinvesting in new or replacement assets relative to the rate at which existing assets are expensed. These trends may have implications for future asset productivity and operational capacity in the region.
Segment Capital Expenditures to Depreciation: North America
Coca-Cola Co.; North America; segment capital expenditures to depreciation calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =
The analysis of the annual data for the North America segment reveals several key trends regarding capital expenditures, depreciation and amortization, and their ratio over the five-year period from 2020 to 2024.
- Capital Expenditures
- Capital expenditures have shown a strong upward trend throughout the period. Commencing at 182 million US dollars in 2020, capital expenditures increased steadily each year, reaching 602 million US dollars by 2024. This represents more than a threefold increase over the span of five years, indicating a significant investment in assets or infrastructure within the segment.
- Depreciation and Amortization
- Depreciation and amortization expenses exhibit a downward trend from 2020 to 2023, decreasing from 439 million US dollars in 2020 to a low of 310 million US dollars in 2023. However, in 2024, there is a slight uptick to 325 million US dollars. Overall, the reduction over the majority of the period suggests either an aging asset base with reduced expense or changes in accounting estimates, followed by a modest increase potentially related to recent capital investments.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation shows a pronounced increase over the five years. Starting at 0.41 in 2020, the ratio increases each year, reaching 1.85 in 2024. This ratio surpassing 1.0 in 2023 and 2024 implies that the segment's new investments in capital assets significantly exceed the value of assets being depreciated. The increasing ratio suggests a period of expansion or modernization within the segment, with rising capital expenditures outpacing the depreciation of existing assets.
In summary, the North America segment demonstrates a strategic focus on asset growth or renewal, as evidenced by sharply rising capital expenditures and an increasing ratio relative to depreciation. Meanwhile, depreciation and amortization expenses have decreased and stabilized at a lower level, reflecting either a shift in asset composition or accounting parameters, before slightly increasing in the most recent year.
Segment Capital Expenditures to Depreciation: Asia Pacific
Coca-Cola Co.; Asia Pacific; segment capital expenditures to depreciation calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =
- Capital Expenditures
- The capital expenditures show notable fluctuations over the analyzed period. After starting at 20 million US dollars in 2020, there is a significant increase to 65 million US dollars in 2021. However, this is followed by a sharp decline to 22 million in 2022, with relatively stable yet slightly decreasing figures of 23 million and 18 million in 2023 and 2024 respectively. This pattern indicates a possible one-time significant investment in 2021, followed by a return to lower levels of capital spending.
- Depreciation and Amortization
- Depreciation and amortization expenses have exhibited a more stable pattern compared to capital expenditures. Starting at 47 million US dollars in 2020, the figure slightly increased to 49 million in 2021 and further rose to 58 million in 2022. Subsequently, there has been a gradual decrease over the next two years, reaching 50 million in 2023 and 45 million in 2024. This trend suggests a peak in asset depreciation in 2022, followed by a decrease potentially due to the aging or disposal of assets.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of segment capital expenditures to depreciation reflects the relationship between new investments and the amortization of existing assets. This ratio peaks sharply at 1.33 in 2021, indicating that capital expenditures substantially exceeded depreciation that year, consistent with the noted spike in capital spending. In other years, the ratio remains below 0.5, signifying capital expenditures are generally less than half of depreciation and amortization. The years 2020, 2022, 2023, and 2024 show relatively modest capital investment relative to asset depreciation.
Segment Capital Expenditures to Depreciation: Global Ventures
Coca-Cola Co.; Global Ventures; segment capital expenditures to depreciation calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =
- Capital expenditures
- The capital expenditures exhibited a decreasing trend from 285 million US dollars in 2021 to 179 million in 2022, reflecting a significant reduction in investment during that period. Following this decline, capital expenditures showed gradual recovery, increasing to 192 million in 2023 and further to 204 million in 2024. Despite this improvement, the expenditures in 2024 remained below the peak level observed in 2021.
- Depreciation and amortization
- Depreciation and amortization expenses increased steadily from 122 million US dollars in 2020 to a peak of 140 million in 2022. Thereafter, these expenses declined to 128 million in 2023 and further to 124 million in 2024. The initial rise suggests growing asset base or increased amortization schedules, whereas the subsequent reduction may indicate asset disposals, changes in amortization policies, or slower asset additions.
- Segment capital expenditures to depreciation ratio
- The ratio of segment capital expenditures to depreciation demonstrates a downward trend from 2.14 in 2020 and 2.11 in 2021 to a notably lower level of 1.28 in 2022, reflecting a disproportionate decrease in capital investments compared to depreciation. In the following years, the ratio gradually increased to 1.5 in 2023 and 1.65 in 2024, indicating a partial restoration of capital spending relative to the depreciation expense, but still remaining below the earlier higher levels.
Segment Capital Expenditures to Depreciation: Bottling Investments
Coca-Cola Co.; Bottling Investments; segment capital expenditures to depreciation calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =
- Capital Expenditures
- Capital expenditures demonstrated an increasing trend from 2020 through 2023, rising from 474 million USD to 843 million USD. However, in 2024, there was a notable decline to 734 million USD, indicating a reduction in investment after several years of growth.
- Depreciation and Amortization
- Depreciation and amortization steadily decreased each year over the period analyzed. Starting at 551 million USD in 2020, the value declined annually to reach 319 million USD by 2024. This consistent decline suggests either an aging asset base with less depreciation expense or disposals of assets over time.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation exhibited a significant upward trend throughout the period. Beginning at 0.86 in 2020, it increased to 2.3 by 2024. This indicates that capital investment increasingly outpaced depreciation charges, reflecting a period of expansion or asset growth within the segment despite the decrease in depreciation and amortization expenses.
Net operating revenues
Coca-Cola Co., net operating revenues by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Europe, Middle East and Africa | |||||
| Latin America | |||||
| North America | |||||
| Asia Pacific | |||||
| Global Ventures | |||||
| Bottling Investments | |||||
| Corporate | |||||
| Eliminations | |||||
| Consolidated |
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).
- Europe, Middle East and Africa
- The net operating revenues for this segment demonstrated a consistent upward trend from 2020 to 2024. Revenues increased from 6,057 million USD in 2020 to 8,122 million USD in 2024, reflecting steady growth over the five-year period.
- Latin America
- This segment exhibited robust growth in net operating revenues. Starting at 3,499 million USD in 2020, revenues rose significantly each year, reaching 6,459 million USD by 2024. This represents a substantial increase, suggesting strengthening market presence or improved performance in the region.
- North America
- North America showed strong and continuous growth in net operating revenues over the period. Revenue rose from 11,477 million USD in 2020 to 18,649 million USD in 2024, indicating a sustained positive momentum and possibly increased sales or market expansion.
- Asia Pacific
- The Asia Pacific segment experienced relatively moderate growth. Revenues increased from 4,722 million USD in 2020 to 5,546 million USD in 2024, with growth plateauing somewhat after 2021, as the increments between subsequent years became minimal.
- Global Ventures
- Net operating revenues in this segment also displayed a positive trend, increasing from 1,991 million USD in 2020 to 3,129 million USD in 2024. The growth was steady, with some acceleration observed between 2020 and 2021.
- Bottling Investments
- This segment's revenues increased from 6,265 million USD in 2020 to a peak of 7,891 million USD in 2022, before declining to 6,223 million USD by 2024. The dip in the last two years may indicate operational challenges, divestitures, or market changes impacting this segment adversely.
- Corporate
- Corporate net operating revenues remained relatively low but showed a general increasing trend from 46 million USD in 2020 to 126 million USD in 2023, before decreasing slightly to 97 million USD in 2024.
- Eliminations
- The eliminations line, representing internal adjustments, showed progressively larger negative values from -1,043 million USD in 2020 reaching -1,433 million USD in 2023, before lessening to -1,164 million USD in 2024. This indicates changes in inter-segment transactions over the period.
- Consolidated
- Total consolidated net operating revenues increased steadily each year, from 33,014 million USD in 2020 to 47,061 million USD in 2024. The consistent upward trajectory signals overall business growth across most segments, despite some fluctuations in Bottling Investments and corporate areas.
Operating income (loss)
Coca-Cola Co., operating income (loss) by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Europe, Middle East and Africa | |||||
| Latin America | |||||
| North America | |||||
| Asia Pacific | |||||
| Global Ventures | |||||
| Bottling Investments | |||||
| Corporate | |||||
| Consolidated |
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 reportable segment operating income data reveals fluctuating trends across various geographic and business segments over the five-year period under review.
- Europe, Middle East and Africa
- This segment showed a generally positive trend in operating income, increasing from 3,379 million USD in 2020 to a peak of 4,202 million USD in 2023. However, there was a slight decline to 4,125 million USD in 2024, indicating some volatility but overall growth within the region.
- Latin America
- There was a consistent and substantial increase in operating income from 2,001 million USD in 2020 to 3,780 million USD in 2024. This demonstrates strong performance and expansion in the Latin American markets over the period.
- North America
- Operating income exhibits a clear upward trajectory, rising significantly from 2,500 million USD in 2020 to a peak of 4,435 million USD in 2023. A minor reduction to 4,336 million USD in 2024 suggests a stabilization after rapid growth but the segment remains robust.
- Asia Pacific
- The Asia Pacific segment shows a less consistent pattern, with operating income growing slightly from 2,158 million USD in 2020 to 2,350 million USD in 2021, followed by a decline to 2,303 million USD in 2022 and a more pronounced drop to 2,040 million USD in 2023. The figure rose again modestly to 2,148 million USD in 2024, reflecting some challenges or market fluctuations in this region.
- Global Ventures
- This segment experienced a notable turnaround, moving from a negative operating income of -120 million USD in 2020 to consistent positive figures thereafter, with an increasing trend: 310 million USD in 2021, 185 million USD in 2022, 329 million USD in 2023, and 359 million USD in 2024. The overall improvement suggests successful strategic initiatives or growth in this business area.
- Bottling Investments
- The operating income in this area was somewhat volatile, initially strong at 898 million USD in 2020 and peaking at 1,596 million USD in 2021, followed by a steep decline to 487 million USD in 2022. It slightly recovered in 2023 to 578 million USD but decreased again to 496 million USD in 2024. This variability may indicate operational challenges or changes in the bottling business environment.
- Corporate
- Corporate-level operating income shows an increasing loss trend, with negative values growing from -1,067 million USD in 2020 to -5,252 million USD in 2024. This signifies rising corporate expenses or restructuring costs that are impacting overall profitability.
- Consolidated
- The consolidated operating income rose from 9,749 million USD in 2020 to a high of 12,425 million USD in 2021. It then declined to 10,909 million USD in 2022, followed by a slight recovery to 11,311 million USD in 2023. However, the figure dropped again to 9,992 million USD in 2024, suggesting that despite growth in certain segments, overall operating income faced pressures likely due to corporate costs and segment-specific challenges.
Capital expenditures
Coca-Cola Co., capital expenditures by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Europe, Middle East and Africa | |||||
| Latin America | |||||
| North America | |||||
| Asia Pacific | |||||
| Global Ventures | |||||
| Bottling Investments | |||||
| Corporate | |||||
| Consolidated |
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).
- Europe, Middle East and Africa
- The capital expenditures in this segment exhibit a fluctuating trend. After rising from 27 million USD in 2020 to a peak of 50 million USD in 2022, expenditures decreased to 43 million USD in 2023 and further dropped significantly to 18 million USD in 2024, indicating a notable reduction in investment activities in the most recent year.
- Latin America
- This segment shows consistently low capital expenditures over the reported period. Beginning at 6 million USD in 2020, expenditures fell sharply to 2 million USD in 2021, with minor fluctuations thereafter, stabilizing at 1 million USD for both 2023 and 2024. The data suggests minimal capital investment in this region in recent years.
- North America
- Capital expenditures in the North America segment display a strong upward trajectory throughout the period. From 182 million USD in 2020, spending increased steadily each year, reaching 602 million USD by 2024. This represents more than a threefold increase over five years, suggesting a strategic focus on growth or modernization in this region.
- Asia Pacific
- Expenditures in Asia Pacific show considerable variability. Starting at 20 million USD in 2020, there was a substantial increase to 65 million USD in 2021, followed by a sharp decline to 22 million USD in 2022. The figures remained relatively stable at 23 million USD in 2023 and slightly declined to 18 million USD in 2024. This suggests that capital investment in the region may have been influenced by specific projects or market conditions that were not sustained.
- Global Ventures
- The Global Ventures segment exhibits a declining trend overall. Capital expenditures decreased from a high of 285 million USD in 2021 to 179 million USD in 2022, followed by a modest recovery to 204 million USD by 2024. Despite the slight rebound, expenditures remain below the earlier peak, indicating potential strategic adjustments in this segment.
- Bottling Investments
- Capital expenditures allocated to Bottling Investments have steadily risen from 474 million USD in 2020 to a peak of 843 million USD in 2023. However, in 2024, there is a decline to 734 million USD. Despite this recent decrease, the overall trend points to significant and sustained investment in bottling operations over the period.
- Corporate
- Corporate-level capital expenditures show a general upward trend. After a slight decrease from 207 million USD in 2020 to 192 million USD in 2021, there is consistent growth in subsequent years, culminating in 487 million USD in 2024. This increase may reflect investments in corporate infrastructure or support functions.
- Consolidated
- The consolidated capital expenditures, representing the aggregate of all segments, demonstrate a clear upward trend from 1,177 million USD in 2020 to 2,064 million USD in 2024. This growth underlines an overall increase in capital investment by the company, driven primarily by substantial increases in North America, Bottling Investments, and Corporate segments, despite reductions in some other regions.
Depreciation and amortization
Coca-Cola Co., depreciation and amortization by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Europe, Middle East and Africa | |||||
| Latin America | |||||
| North America | |||||
| Asia Pacific | |||||
| Global Ventures | |||||
| Bottling Investments | |||||
| Corporate | |||||
| Consolidated |
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).
- Europe, Middle East and Africa
- Depreciation and amortization expenses exhibit a steady decline over the five-year period, decreasing from 86 million USD in 2020 to 57 million USD in 2024. This consistent downward trend suggests ongoing reductions in asset base or changes in asset utilization within this region.
- Latin America
- There is some variability in this segment, with depreciation and amortization decreasing initially from 45 million USD in 2020 to 39 million USD in 2021 and 2022, then increasing to 48 million USD in 2023, followed by a sharp decline to 29 million USD in 2024. The fluctuations may indicate asset restructuring, new investments, or disposals impacting amortization schedules.
- North America
- This segment shows a clear downward trend from 439 million USD in 2020 to 310 million USD in 2023, with a slight increase to 325 million USD in 2024. The overall decline suggests a reduction in depreciable assets or possible amortization policy changes, while the 2024 uptick might reflect recent capital expenditures or revised asset valuations.
- Asia Pacific
- Depreciation and amortization expenses for this region display minor fluctuations, starting at 47 million USD in 2020, rising to a peak of 58 million USD in 2022, then decreasing to 45 million USD by 2024. This pattern suggests periods of asset additions followed by stabilization or asset retirements.
- Global Ventures
- There is a general upward movement from 122 million USD in 2020 to 140 million USD in 2022, followed by a slight decline to 124 million USD in 2024. The initial increase could be associated with new investments or acquisitions, while the subsequent reduction may result from asset disposals or amortization of previously capitalized costs.
- Bottling Investments
- This category exhibits a notable downward trend, shrinking from 551 million USD in 2020 to 319 million USD in 2024. The significant decrease across the timeframe may indicate divestitures, efficiency gains, or adjusted capital expenditure strategies influencing asset depreciation.
- Corporate
- Corporate-level depreciation and amortization expenses steadily decline from 246 million USD in 2020 to 144 million USD in 2023, with a modest rebound to 176 million USD in 2024. The decline suggests reduced corporate asset holdings or changes in amortization policies, while the 2024 increase may reflect new corporate investments or reclassification of assets.
- Consolidated
- Overall depreciation and amortization show a continuous decline from 1,536 million USD in 2020 to 1,075 million USD in 2024. This aggregate trend aligns with the majority of segments and may reflect a broader corporate strategy involving asset optimization, disposal, or changes in accounting practices related to depreciation.