Coca-Cola

Key Performance Metrics

  • The review of Net Profit Margin witnessed a fluctuating trend. The Net Profit Margin improved from 0.24% in 2019 to 6.14% in 2023.
  • The average EBIT Margin for the period under analysis was 6.01%, with 2019 and 2022 performing the worst and best, respectively.
  • In the current year, Coca-cola was able to cover its interest liabilities 0 times in the current year- compared to 2019 when it was 1.59 times.
  • The Asset turnover stood at 1.64 times in 2023 from 1.55 in 2019, implying a low performance on Assets of the business in relation to revenue.

Profitability

  • The revenue of Coca-cola has fluctuated year on year. The revenue increased by 3.75% between 2019 and 2020 and a further 11.47% increase was recorded between 2021 and 2022. There also occurred an increase of 7.30% between 2022 and 2023 (the current period).
  • Coca-cola’s performance in profitability looks bad/good as the return on capital employed also recorded bad/good performance during the period of analysis.

Liquidity

  • The company’s result in liquidity looks strong, as current ratio increased from 1.38:1 to 1.56:1 on the last year. Which implies that the company has enough assets to settle its current liabilities.

Capital Structure

  • Coca-Cola is both equity and debt financed.
  • The debt-to-equity (D/E) ratio has been falling year on year. The gearing position of the company appears to be high as it stood at 45% in the current year.

Source: Coca-cola Annual Report

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