Coca Cola Co

The Coca-Cola Company operates as a global beverage producer, generating revenue through the manufacturing and distribution of concentrated and finished beverage products.

The company is classified within the Food & Beverages industry under the Non-Cyclical Consumer Goods & Services economic sector with a rule-based classification confidence of 0.89.

The capital structure is leveraged, with a debt-to-equity ratio of 1.22 and total debt comprising $39.07 billion in long-term obligations and $1.96 billion in short-term debt against $10.57 billion in cash and equivalents. The current ratio stands at 1.36, indicating adequate short-term liquidity coverage despite the negative net cash position. The balance sheet reflects total assets of $104.22 billion and total equity of $33.63 billion.

Profitability metrics show a return on equity of 11.67% and a return on assets of 3.77% for the latest period. The company generated $12.47 billion in revenue with a gross profit of $7.85 billion and operating income of $4.36 billion, resulting in net income of $3.92 billion. These returns are evaluated against the backdrop of a high valuation multiple, with a price-to-earnings ratio of 89.35 and an EV/EBITDA of 82.42.

Revenue concentration and geographic exposure are not detailed in the available segment data, but the company operates globally with consumer demand varying by market. The business model relies on optimizing its portfolio of brands and products to satisfy local consumer preferences, as indicated by filing observations regarding product menu optimization.

Growth trajectory analysis is limited by the absence of historical period data in the input. The latest quarterly revenue of $12.47 billion serves as the baseline for current performance assessment. Free cash flow for the period was $1.76 billion, derived from operating cash flow of $2.02 billion less capital expenditures of $266 million.

Risk assessment highlights medium dilution risk and key flags including negative net cash after debt subtraction and references to going-concern or substantial-doubt language in filings. Source documents also mention dilution or offering risk. Impairment charges of $1.27 billion were recorded, primarily due to negative net foreign currency translation adjustments related to assets held for sale, including bottling operations in Africa.

Recent events include an index reconstitution update for the company's constituent status. The company recorded a gain of $331 million from the sale of a portion of its ownership interest in CCEP in the prior year, alongside various impairment charges and equity security losses.

Key takeaways

• High valuation multiples (P/E 89.35, EV/EBITDA 82.42) suggest significant growth expectations or premium pricing power embedded in the current share price.
• Leverage is moderate with a debt-to-equity ratio of 1.22, but liquidity is supported by a current ratio of 1.36 and $10.57 billion in cash.
• Impairment charges of $1.27 billion related to foreign currency translation and assets held for sale indicate potential structural adjustments or divestitures.
• Dilution risk is rated as medium, with filings referencing offering risks and potential equity issuances.
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• Net cash is negative after subtracting total debt.
• Filings reference going-concern or substantial-doubt language.
• Source documents mention dilution or offering risk.