Coca-Cola Co. (NYSE:KO)

Inventory Turnover

The inventory turnover ratio exhibits some fluctuations over the observed periods, with values ranging from a high of 4.74 in December 2022 to a low of approximately 3.57 in June 2025. There is a gradual decline in the ratio from early 2023 onwards, suggesting a slower rate of inventory turnover in more recent quarters compared to late 2020 and 2021.

Receivables Turnover

The receivables turnover ratio demonstrates variability but maintains a generally high level, with peaks reaching 13.42 in December 2023 and 13.19 in March 2025. Despite some dips, such as 8.65 in April 2022 and 9.46 in March 2023, the trend shows an overall capacity to convert receivables into cash relatively efficiently over time.

Working Capital Turnover

The working capital turnover ratio reveals significant volatility, with dramatic spikes at various points, notably 41.66 in March 2024 and 62.92 in March 2025. These peaks are interspersed with lower values in prior quarters, such as 4.58 in December 2020 and 5.07 in September 2020, signaling periods of rapid utilization of working capital alternated with less efficient turnover. The elevated ratios in recent periods indicate a potentially intensified use of working capital to support sales.

Average Inventory Processing Period

This metric shows a moderate degree of fluctuation with values mostly between 77 and 102 days. A declining trend is visible from 89 days in March 2020 to a low around 77 days in December 2021, followed by an increase reaching up to 102 days in mid-2025. This pattern indicates that inventory is processed more quickly in some periods, but there has been a tendency towards longer holding times in the most recent periods.

Average Receivable Collection Period

The average receivable collection period ranges approximately between 27 and 42 days. A general downward trend is noted moving from 41 days in mid-2020 to a low of 27 days by December 2023, suggesting improved efficiency in collecting receivables. However, some variability continues, with intermittent increases back to the mid-30s days in early 2024 and mid-2025.

Operating Cycle

The operating cycle, which combines inventory processing and receivable collection periods, fluctuates between 111 and 134 days. The cycle decreases from a higher range of about 124-131 days in 2020 to a low near 111 days in December 2021. Following this, there are periods of lengthening cycles, reaching 134 days in March 2024 and again in June 2025. These shifts reflect changes in the combined efficiency of inventory handling and receivables management over time.

The cost of goods sold (COGS) exhibits fluctuations over the observed periods, with values generally oscillating between approximately 3,000 and 4,800 million US dollars. Notable increases are observed around mid-2022 and mid-2023, peaking near 4,912 million US dollars in June 2023 before slightly declining in subsequent quarters. The early 2020 periods show relatively lower COGS, with a gradual elevation noticeable as time progresses toward 2024 and 2025.

Inventories demonstrate a gradual upward trend throughout the timeline. Starting from approximately 3,558 million US dollars in March 2020, inventory levels increase steadily, reaching a peak around 5,102 million US dollars by March 2025. The growth in inventory appears fairly consistent, with occasional minor declines, such as between mid-2023 and late 2023, but the overall movement is upward.

The inventory turnover ratio, where available, indicates a degree of volatility but generally hovers around the range of 3.5 to 4.7. The ratio peaked at 4.74 in December 2022, suggesting efficient inventory management during that quarter. Subsequent values demonstrate a slight downward trend toward the latter periods, with figures settling closer to 3.5 by mid-2025. This decline in turnover ratio, alongside the rising inventory levels, might imply slower inventory movement or accumulation of stock relative to cost of goods sold in recent quarters.

Cost of Goods Sold (COGS)

Ranges between approximately 3,000 to 4,900 million US dollars, with peaks observed mid-2022 and mid-2023.

Overall upward trajectory with periodic fluctuations, reflecting variable production or sales volumes.

Inventories

Consistent increase from about 3,558 million to over 5,100 million US dollars over five years.

Indicates accumulation of stock, possibly to meet anticipated demand or responding to supply chain factors.

Inventory Turnover Ratio

Values range between approximately 3.5 and 4.7, peaking in late 2022.

Recent downward trend suggests slower inventory movement relative to sales, potentially impacting liquidity or indicating conservative inventory management.

In summary, the financial indicators highlight rising inventory levels coupled with moderately increasing cost of goods sold. The declining inventory turnover ratio in the later periods warrants attention as it may affect working capital efficiency. Monitoring these trends could provide insights on operational efficiency and inventory management strategies moving forward.

Net Operating Revenues

The net operating revenues exhibit notable fluctuations across the periods analyzed. Starting at 8,601 million US dollars in March 2020, revenues decreased to 7,150 million by June 2020, likely reflecting the initial impacts of adverse external conditions.

Subsequently, revenues rebounded to 8,652 million in September 2020 and stabilized around the 8,600 to 9,000 million range through December 2020 and April 2021. A marked growth phase occurred from the second quarter of 2021, reaching a peak of 11,972 million in June 2023.

Despite some cyclic declines, the general trend from mid-2020 onward is upward, with revenues generally increasing quarter over quarter, culminating in 12,535 million by June 2025. The data indicates recovery and expansion in revenue-generating activities over this timeframe.

Trade Accounts Receivable, Less Allowances

This item demonstrates variability, beginning at 4,430 million US dollars in March 2020, decreasing sharply to 3,849 million in June 2020 and further to 3,144 million by December 2020. This decline may correspond with the reduction in revenues or changes in credit policies.

Following this period, trade receivables generally rose, peaking at 4,641 million in April 2022. Afterward, values slightly fluctuated but remained relatively stable, staying mostly within the 3,400 to 4,500 million range through mid-2025.

Overall, the trade receivables indicate a mixed pattern with initial contraction followed by recovery and relative stabilization, reflecting changes in sales volume, collection efficiency, or credit terms.

Receivables Turnover Ratio

The receivables turnover ratio, which measures how efficiently receivables are collected, shows variation between approximately 8.65 and 13.42 during the periods recorded.

In late 2020, the ratio ranged from 8.89 to 11.01, suggesting moderate collection efficiency. An improving trend is observed in 2022 and 2023, with ratios increasing to as high as 13.42, indicating enhanced collection performance or a shift to shorter credit terms.

However, some fluctuations occur, with ratios dipping below 11 at times, implying periods of relatively slower collection. The overall trajectory suggests progressive improvement in receivables management over the analysed timeframe.

The financial data reveals several notable trends and fluctuations in key performance indicators over the observed quarters.

Working Capital

Working capital exhibited significant volatility throughout the periods. It started with a negative value in March 2020, indicating potential liquidity challenges at the outset. Following this, there was a consistent upward trend peaking around October 2021, where the working capital reached its highest values, suggesting improved liquidity and operational efficiency during that timeframe. However, post-October 2021, there was a marked decrease with subsequent fluctuations, showing periods of contraction and recovery. The most recent quarters reflect a moderate level of working capital, considerably lower than the peak observed but still positive, which may indicate cautious management of current assets and liabilities.

Net Operating Revenues

Net operating revenues showed general growth with notable seasonal fluctuations. Revenues started at a moderate level in early 2020, experiencing a dip in the second quarter likely reflective of external disruptions during that period. Afterward, revenues recovered and generally trended upward, reaching peak values in mid-2023. Despite some quarters showing minor declines or stabilization, the overall pattern suggests steady revenue growth, indicating robustness in the core business operations over the long term. The last two quarters showed a resurgence in revenues, possibly driven by market expansion or price adjustments.

Working Capital Turnover

Working capital turnover ratios were not reported for the initial quarters. Beginning in late 2020, the ratio showed relatively high values, indicating efficient use of working capital to generate revenues. There was some decline observed through late 2021, but the ratio remained elevated, signifying effective operational management. Subsequently, ratios displayed notable spikes in certain quarters, such as in March and December 2024, suggesting periods of heightened efficiency or perhaps lower working capital bases relative to revenues. The turnover ratio’s volatility indicates fluctuating effectiveness in working capital utilization, with certain periods reflecting exceptional productivity.

Overall, the data reflects a period of recovery and growth in revenues following early disruptions, with working capital management showing periods of both strength and stress. The fluctuations in working capital turnover underscore variable operational efficiency, which may warrant further investigation into underlying causes such as changes in inventory management, receivables, or payables cycles.

Inventory Turnover

The inventory turnover ratio shows an overall downward trend across the observed periods, starting from 4.11 and reaching values around 3.57 by the end of the latest period. Initially, the ratio fluctuates moderately, with peaks near 4.74 observed around late 2022, followed by a gradual decline through 2023 and 2024. This decreasing trend indicates a slowing in the frequency with which inventory is sold and replaced.

Average Inventory Processing Period

Corresponding to the inventory turnover trend, the average inventory processing period exhibits an opposite pattern, increasing from approximately 89 days to over 100 days by the end of the series. After a period of improvement with lower processing days around late 2021 and early 2022, the processing period lengthens steadily, suggesting that inventory remains in stock for longer durations as time progresses.

Relationship and Implications

There is an inverse correlation between inventory turnover and the average inventory processing period, reflecting the typical dynamic where lower turnover ratios correspond to longer holding periods. The observed trends imply a potential decline in operational efficiency related to inventory management, which may affect liquidity and working capital management. Extended inventory holding periods could indicate slower sales or overstocking that might increase storage costs and risk of obsolescence.

The receivables turnover ratio exhibits fluctuations over the observed periods, generally ranging between approximately 8.6 and 13.4. After missing data in early quarters, a level of 10.5 is recorded in late 2020, followed by a decline reaching near 8.65 in early 2022. Subsequently, there is a rising trend with peaks above 12 in late 2022 and late 2023, reaching the highest turnover ratio of about 13.42 in December 2023. The ratio somewhat moderates afterward but stays above 10 into mid-2025.

The average receivable collection period inversely reflects these turnover trends, moving between roughly 27 and 42 days. After initial values around 35 days in late 2020, this metric lengthens to over 41 days by mid-2021 and early 2022, indicating slower collections. Then, a downward adjustment occurs with a reducing trend to as low as 27 days in late 2023, signaling improved efficiency in receivables collection. Slight fluctuations occur thereafter, with days increasing again to the low 30s by mid-2025.

Receivables Turnover Ratio

Shows notable variability, with a tendency toward improvement after a dip in early 2022; peaks during late 2022 and 2023 suggest stronger collection performance during these quarters.

Average Receivable Collection Period

Varies inversely to turnover ratios, with longer collection periods early in the dataset transitioning to shorter periods later, reflecting enhanced collection efficiency, particularly around late 2023.

The data generally indicates a cycle of slower receivables collection during 2021 and early 2022 followed by a pronounced improvement in subsequent periods. This could suggest seasonal or market-driven influences impacting collection efficiency. The improvements in turnover and reduced collection days in later quarters point to more effective working capital management and potentially better cash flow generation.

The analysis of the financial periods reveals several noteworthy trends in the company's operational efficiency as measured by inventory and receivable management, as well as the overall operating cycle.

Average Inventory Processing Period

This metric shows fluctuations over the periods observed. From early 2020 to mid-2021, the processing period remained relatively stable, with values around the upper 80s to lower 90s in days. Starting in late 2021, a downward trend is visible, reaching a low of 77 days by the end of 2021. However, this was followed by volatility in 2022 and 2023, with periods of increase peaking at 98 days by early 2024. The trend indicates varying efficiency in inventory turnover, with some recent softness as the period extends over 100 days in the last two periods of 2025, suggesting a potential slowdown in inventory movement or changes in inventory management practices.

Average Receivable Collection Period

The receivable collection period exhibits moderate fluctuations within a range of roughly 27 to 42 days throughout the observed timeline. There is no strong long-term upward or downward trend noticeable. The collection period increased slightly in the middle of the timeline around mid-2021, with a peak at 42 days, followed by a decline to the upper 20s by late 2023, indicating some improvements in collection efficiency. Nonetheless, the values again trend upward slightly but remain near the mid-30s towards the end, suggesting a relatively consistent but moderately fluctuating collection pattern.

Operating Cycle

The operating cycle, which combines inventory processing and receivable collection, broadly mirrors the variability seen in inventory and receivables periods. After increasing to a peak of 131 days mid-2020 and 2024, it declines at certain intervals, reaching lows around 111 to 112 days at the end of 2021 and 2023 respectively. This cyclical pattern points to alternating periods of operational efficiency and slowdown. The overall trend suggests that while the company has managed to reduce the operating cycle at times, particularly at the end of 2021 and 2023, recent periods show an extension back towards the higher levels, indicating challenges in maintaining a consistently shorter operating cycle.

In summary, the data reflects dynamic changes in working capital components, with inventory management showing the most pronounced variability. While efforts to optimize receivables seem to have had some positive effect during certain periods, the overall operating cycle remains subject to fluctuations primarily driven by inventory processing durations. Attention to managing inventory levels more consistently could improve operational efficiency and shorten the operating cycle in the future.