Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Short-term Activity Ratios (Summary)
Inventory Turnover
Receivables Turnover
Payables Turnover
Working Capital Turnover
Average Inventory Processing Period
Average Receivable Collection Period
Operating Cycle
Average Payables Payment Period
Cash Conversion Cycle

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

	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.

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

	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.

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

	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.

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

	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.

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

	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.

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

	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.

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

	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.

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

No. days

	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.

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

	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.

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

No. days

	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 + 39 – 95 = 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.

Coca-Cola Co. (NYSE:KO)

Analysis of Short-term (Operating) Activity Ratios

Short-term Activity Ratios (Summary)

Inventory Turnover

Receivables Turnover

Payables Turnover

Working Capital Turnover

Average Inventory Processing Period

Average Receivable Collection Period

Operating Cycle

Average Payables Payment Period

Cash Conversion Cycle