Stock Analysis on Net
Stock Analysis on Net

Coca-Cola Co. (NYSE:KO)

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Adjustments to Financial Statements: Removal of Goodwill

Coca-Cola Co., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported) 100,549 97,703 92,763 94,354 87,296
Less: Goodwill 18,139 18,358 18,782 19,363 17,506
Total assets (adjusted) 82,410 79,345 73,981 74,991 69,790
Adjustment to Equity Attributable To Shareowners Of The Coca-Cola Company
Equity attributable to shareowners of The Coca-Cola Company (as reported) 24,856 25,941 24,105 22,999 19,299
Less: Goodwill 18,139 18,358 18,782 19,363 17,506
Equity attributable to shareowners of The Coca-Cola Company (adjusted) 6,717 7,583 5,323 3,636 1,793
Adjustment to Net Income Attributable To Shareowners Of The Coca-Cola Company
Net income attributable to shareowners of The Coca-Cola Company (as reported) 10,631 10,714 9,542 9,771 7,747
Add: Goodwill impairment charges 6 — — 7 14
Net income attributable to shareowners of The Coca-Cola Company (adjusted) 10,637 10,714 9,542 9,778 7,761

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Coca-Cola Co., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Coca-Cola Co., adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net Profit Margin
Reported net profit margin 22.59% 23.42% 22.19% 25.28% 23.47%
Adjusted net profit margin 22.60% 23.42% 22.19% 25.30% 23.51%
Total Asset Turnover
Reported total asset turnover 0.47 0.47 0.46 0.41 0.38
Adjusted total asset turnover 0.57 0.58 0.58 0.52 0.47
Financial Leverage
Reported financial leverage 4.05 3.77 3.85 4.10 4.52
Adjusted financial leverage 12.27 10.46 13.90 20.62 38.92
Return on Equity (ROE)
Reported ROE 42.77% 41.30% 39.59% 42.48% 40.14%
Adjusted ROE 158.36% 141.29% 179.26% 268.92% 432.85%
Return on Assets (ROA)
Reported ROA 10.57% 10.97% 10.29% 10.36% 8.87%
Adjusted ROA 12.91% 13.50% 12.90% 13.04% 11.12%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Coca-Cola Co. adjusted net profit margin ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Coca-Cola Co. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Coca-Cola Co. adjusted financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Coca-Cola Co. adjusted ROE deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Coca-Cola Co. adjusted ROA improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level.

Coca-Cola Co., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to shareowners of The Coca-Cola Company 10,631 10,714 9,542 9,771 7,747
Net operating revenues 47,061 45,754 43,004 38,655 33,014
Profitability Ratio
Net profit margin1 22.59% 23.42% 22.19% 25.28% 23.47%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to shareowners of The Coca-Cola Company 10,637 10,714 9,542 9,778 7,761
Net operating revenues 47,061 45,754 43,004 38,655 33,014
Profitability Ratio
Adjusted net profit margin2 22.60% 23.42% 22.19% 25.30% 23.51%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Net profit margin = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Net operating revenues
= 100 × 10,631 ÷ 47,061 = 22.59%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to shareowners of The Coca-Cola Company ÷ Net operating revenues
= 100 × 10,637 ÷ 47,061 = 22.60%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Coca-Cola Co. adjusted net profit margin ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net operating revenues 47,061 45,754 43,004 38,655 33,014
Total assets 100,549 97,703 92,763 94,354 87,296
Activity Ratio
Total asset turnover1 0.47 0.47 0.46 0.41 0.38
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net operating revenues 47,061 45,754 43,004 38,655 33,014
Adjusted total assets 82,410 79,345 73,981 74,991 69,790
Activity Ratio
Adjusted total asset turnover2 0.57 0.58 0.58 0.52 0.47

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Total asset turnover = Net operating revenues ÷ Total assets
= 47,061 ÷ 100,549 = 0.47

2 Adjusted total asset turnover = Net operating revenues ÷ Adjusted total assets
= 47,061 ÷ 82,410 = 0.57

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Coca-Cola Co. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets 100,549 97,703 92,763 94,354 87,296
Equity attributable to shareowners of The Coca-Cola Company 24,856 25,941 24,105 22,999 19,299
Solvency Ratio
Financial leverage1 4.05 3.77 3.85 4.10 4.52
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 82,410 79,345 73,981 74,991 69,790
Adjusted equity attributable to shareowners of The Coca-Cola Company 6,717 7,583 5,323 3,636 1,793
Solvency Ratio
Adjusted financial leverage2 12.27 10.46 13.90 20.62 38.92

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Financial leverage = Total assets ÷ Equity attributable to shareowners of The Coca-Cola Company
= 100,549 ÷ 24,856 = 4.05

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted equity attributable to shareowners of The Coca-Cola Company
= 82,410 ÷ 6,717 = 12.27

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Coca-Cola Co. adjusted financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to shareowners of The Coca-Cola Company 10,631 10,714 9,542 9,771 7,747
Equity attributable to shareowners of The Coca-Cola Company 24,856 25,941 24,105 22,999 19,299
Profitability Ratio
ROE1 42.77% 41.30% 39.59% 42.48% 40.14%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to shareowners of The Coca-Cola Company 10,637 10,714 9,542 9,778 7,761
Adjusted equity attributable to shareowners of The Coca-Cola Company 6,717 7,583 5,323 3,636 1,793
Profitability Ratio
Adjusted ROE2 158.36% 141.29% 179.26% 268.92% 432.85%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 ROE = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Equity attributable to shareowners of The Coca-Cola Company
= 100 × 10,631 ÷ 24,856 = 42.77%

2 Adjusted ROE = 100 × Adjusted net income attributable to shareowners of The Coca-Cola Company ÷ Adjusted equity attributable to shareowners of The Coca-Cola Company
= 100 × 10,637 ÷ 6,717 = 158.36%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Coca-Cola Co. adjusted ROE deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to shareowners of The Coca-Cola Company 10,631 10,714 9,542 9,771 7,747
Total assets 100,549 97,703 92,763 94,354 87,296
Profitability Ratio
ROA1 10.57% 10.97% 10.29% 10.36% 8.87%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to shareowners of The Coca-Cola Company 10,637 10,714 9,542 9,778 7,761
Adjusted total assets 82,410 79,345 73,981 74,991 69,790
Profitability Ratio
Adjusted ROA2 12.91% 13.50% 12.90% 13.04% 11.12%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 ROA = 100 × Net income attributable to shareowners of The Coca-Cola Company ÷ Total assets
= 100 × 10,631 ÷ 100,549 = 10.57%

2 Adjusted ROA = 100 × Adjusted net income attributable to shareowners of The Coca-Cola Company ÷ Adjusted total assets
= 100 × 10,637 ÷ 82,410 = 12.91%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Coca-Cola Co. adjusted ROA improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level.