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

Coca-Cola Co. (NYSE:KO)

Analysis of Short-term (Operating) Activity Ratios

Beginner level

Short-term Activity Ratios (Summary)

Coca-Cola Co., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Turnover Ratios
Inventory turnover 4.33 4.26 4.99 6.16 6.02
Receivables turnover 9.38 9.38 9.66 10.86 11.24
Payables turnover 3.84 4.71 5.79 6.14 6.25
Working capital turnover 22.58 3.79 5.60 6.85
Average No. Days
Average inventory processing period 84 86 73 59 61
Add: Average receivable collection period 39 39 38 34 32
Operating cycle 123 125 111 93 93
Less: Average payables payment period 95 77 63 59 58
Cash conversion cycle 28 48 48 34 35

Based on: 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), 10-K (filing date: 2016-02-25).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Coca-Cola Co.’s inventory turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Receivables turnover An activity ratio equal to revenue divided by receivables. Coca-Cola Co.’s receivables turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Coca-Cola Co.’s payables turnover ratio decreased from 2017 to 2018 and from 2018 to 2019.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Coca-Cola Co.’s number of days of inventory outstanding deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Coca-Cola Co.’s operating cycle deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Coca-Cola Co.’s number of days of payables outstanding increased from 2017 to 2018 and from 2018 to 2019.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.

Inventory Turnover

Coca-Cola Co., inventory turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Cost of goods sold 14,619  11,770  13,256  16,465  17,482 
Inventories 3,379  2,766  2,655  2,675  2,902 
Short-term Activity Ratio
Inventory turnover1 4.33 4.26 4.99 6.16 6.02
Benchmarks
Inventory Turnover, Competitors2
PepsiCo Inc. 9.03 9.39 9.77 10.36 10.44
Inventory Turnover, Sector
Beverages 6.66 6.98 7.50 8.28 8.16
Inventory Turnover, Industry
Consumer Goods 5.72 6.18 5.93 6.02 6.05

Based on: 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), 10-K (filing date: 2016-02-25).

1 2019 Calculation
Inventory turnover = Cost of goods sold ÷ Inventories
= 14,619 ÷ 3,379 = 4.33

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Coca-Cola Co.’s inventory turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Receivables Turnover

Coca-Cola Co., receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net operating revenues 37,266  31,856  35,410  41,863  44,294 
Trade accounts receivable, less allowances 3,971  3,396  3,667  3,856  3,941 
Short-term Activity Ratio
Receivables turnover1 9.38 9.38 9.66 10.86 11.24
Benchmarks
Receivables Turnover, Competitors2
PepsiCo Inc. 8.59 9.05 9.04 9.38 9.80
Receivables Turnover, Sector
Beverages 8.85 9.16 9.25 9.92 10.34
Receivables Turnover, Industry
Consumer Goods 13.25 14.35 13.22 13.55 14.22

Based on: 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), 10-K (filing date: 2016-02-25).

1 2019 Calculation
Receivables turnover = Net operating revenues ÷ Trade accounts receivable, less allowances
= 37,266 ÷ 3,971 = 9.38

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Coca-Cola Co.’s receivables turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Payables Turnover

Coca-Cola Co., payables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Cost of goods sold 14,619  11,770  13,256  16,465  17,482 
Accounts payable 3,804  2,498  2,288  2,682  2,795 
Short-term Activity Ratio
Payables turnover1 3.84 4.71 5.79 6.14 6.25
Benchmarks
Payables Turnover, Competitors2
PepsiCo Inc. 3.76 4.07 4.28 4.58 5.12
Payables Turnover, Sector
Beverages 3.79 4.24 4.66 5.05 5.50
Payables Turnover, Industry
Consumer Goods 4.46 4.70 4.54 4.76 5.28

Based on: 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), 10-K (filing date: 2016-02-25).

1 2019 Calculation
Payables turnover = Cost of goods sold ÷ Accounts payable
= 14,619 ÷ 3,804 = 3.84

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Coca-Cola Co.’s payables turnover ratio decreased from 2017 to 2018 and from 2018 to 2019.

Working Capital Turnover

Coca-Cola Co., working capital turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Current assets 20,411  30,634  36,545  34,010  33,395 
Less: Current liabilities 26,973  29,223  27,194  26,532  26,930 
Working capital (6,562) 1,411  9,351  7,478  6,465 
 
Net operating revenues 37,266  31,856  35,410  41,863  44,294 
Short-term Activity Ratio
Working capital turnover1 22.58 3.79 5.60 6.85
Benchmarks
Working Capital Turnover, Competitors2
PepsiCo Inc. 6.04 10.55 11.56
Working Capital Turnover, Sector
Beverages 82.78 4.98 7.79 9.01
Working Capital Turnover, Industry
Consumer Goods 29.22 32.63 19.11

Based on: 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), 10-K (filing date: 2016-02-25).

1 2019 Calculation
Working capital turnover = Net operating revenues ÷ Working capital
= 37,266 ÷ -6,562 =

2 Click competitor name to see calculations.


Average Inventory Processing Period

Coca-Cola Co., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Inventory turnover 4.33 4.26 4.99 6.16 6.02
Short-term Activity Ratio (no. days)
Average inventory processing period1 84 86 73 59 61
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
PepsiCo Inc. 40 39 37 35 35
Average Inventory Processing Period, Sector
Beverages 55 52 49 44 45
Average Inventory Processing Period, Industry
Consumer Goods 64 59 62 61 60

Based on: 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), 10-K (filing date: 2016-02-25).

1 2019 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 4.33 = 84

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Coca-Cola Co.’s number of days of inventory outstanding deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Average Receivable Collection Period

Coca-Cola Co., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Receivables turnover 9.38 9.38 9.66 10.86 11.24
Short-term Activity Ratio (no. days)
Average receivable collection period1 39 39 38 34 32
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
PepsiCo Inc. 43 40 40 39 37
Average Receivable Collection Period, Sector
Beverages 41 40 39 37 35
Average Receivable Collection Period, Industry
Consumer Goods 28 25 28 27 26

Based on: 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), 10-K (filing date: 2016-02-25).

1 2019 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 9.38 = 39

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.

Operating Cycle

Coca-Cola Co., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Average inventory processing period 84 86 73 59 61
Average receivable collection period 39 39 38 34 32
Short-term Activity Ratio
Operating cycle1 123 125 111 93 93
Benchmarks
Operating Cycle, Competitors2
PepsiCo Inc. 83 79 77 74 72
Operating Cycle, Sector
Beverages 96 92 88 81 80
Operating Cycle, Industry
Consumer Goods 92 84 90 88 86

Based on: 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), 10-K (filing date: 2016-02-25).

1 2019 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 84 + 39 = 123

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Coca-Cola Co.’s operating cycle deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Average Payables Payment Period

Coca-Cola Co., average payables payment period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Payables turnover 3.84 4.71 5.79 6.14 6.25
Short-term Activity Ratio (no. days)
Average payables payment period1 95 77 63 59 58
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
PepsiCo Inc. 97 90 85 80 71
Average Payables Payment Period, Sector
Beverages 96 86 78 72 66
Average Payables Payment Period, Industry
Consumer Goods 82 78 80 77 69

Based on: 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), 10-K (filing date: 2016-02-25).

1 2019 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.84 = 95

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Coca-Cola Co.’s number of days of payables outstanding increased from 2017 to 2018 and from 2018 to 2019.

Cash Conversion Cycle

Coca-Cola Co., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Average inventory processing period 84 86 73 59 61
Average receivable collection period 39 39 38 34 32
Average payables payment period 95 77 63 59 58
Short-term Activity Ratio
Cash conversion cycle1 28 48 48 34 35
Benchmarks
Cash Conversion Cycle, Competitors2
PepsiCo Inc. -14 -11 -8 -6 1
Cash Conversion Cycle, Sector
Beverages 0 6 10 9 14
Cash Conversion Cycle, Industry
Consumer Goods 10 6 10 11 17

Based on: 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), 10-K (filing date: 2016-02-25).

1 2019 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 84 + 3995 = 28

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.