Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Coca-Cola Co., liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.13 | 1.15 | 1.13 | 1.32 | 0.76 | |
| Quick ratio | 0.72 | 0.77 | 0.81 | 0.96 | 0.56 | |
| Cash ratio | 0.58 | 0.59 | 0.63 | 0.75 | 0.41 |
Based on: 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), 10-K (reporting date: 2019-12-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Coca-Cola Co. current ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Coca-Cola Co. quick ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Coca-Cola Co. cash ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Current Ratio
Coca-Cola Co., current ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 26,732) | 22,591) | 22,545) | 19,240) | 20,411) | |
| Current liabilities | 23,571) | 19,724) | 19,950) | 14,601) | 26,973) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.13 | 1.15 | 1.13 | 1.32 | 0.76 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Altria Group Inc. | 0.49 | 0.84 | 0.71 | 0.79 | 0.59 | |
| PepsiCo Inc. | 0.85 | 0.80 | 0.83 | 0.98 | 0.86 | |
| Philip Morris International Inc. | 0.75 | 0.72 | 0.92 | 1.10 | 1.09 | |
| Current Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 0.85 | 0.86 | 0.92 | 1.06 | 0.85 | |
| Current Ratio, Industry | ||||||
| Consumer Staples | 0.84 | 0.89 | 0.93 | 0.93 | 0.83 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 26,732 ÷ 23,571 = 1.13
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Coca-Cola Co. current ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Quick Ratio
Coca-Cola Co., quick ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 9,366) | 9,519) | 9,684) | 6,795) | 6,480) | |
| Short-term investments | 2,997) | 1,043) | 1,242) | 1,771) | 1,467) | |
| Marketable securities | 1,300) | 1,069) | 1,699) | 2,348) | 3,228) | |
| Trade accounts receivable, less allowances | 3,410) | 3,487) | 3,512) | 3,144) | 3,971) | |
| Total quick assets | 17,073) | 15,118) | 16,137) | 14,058) | 15,146) | |
| Current liabilities | 23,571) | 19,724) | 19,950) | 14,601) | 26,973) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.72 | 0.77 | 0.81 | 0.96 | 0.56 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Altria Group Inc. | 0.33 | 0.67 | 0.54 | 0.56 | 0.28 | |
| PepsiCo Inc. | 0.66 | 0.58 | 0.56 | 0.77 | 0.66 | |
| Philip Morris International Inc. | 0.28 | 0.29 | 0.44 | 0.56 | 0.56 | |
| Quick Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 0.53 | 0.54 | 0.59 | 0.72 | 0.56 | |
| Quick Ratio, Industry | ||||||
| Consumer Staples | 0.37 | 0.39 | 0.43 | 0.47 | 0.38 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 17,073 ÷ 23,571 = 0.72
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Coca-Cola Co. quick ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Cash Ratio
Coca-Cola Co., cash ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 9,366) | 9,519) | 9,684) | 6,795) | 6,480) | |
| Short-term investments | 2,997) | 1,043) | 1,242) | 1,771) | 1,467) | |
| Marketable securities | 1,300) | 1,069) | 1,699) | 2,348) | 3,228) | |
| Total cash assets | 13,663) | 11,631) | 12,625) | 10,914) | 11,175) | |
| Current liabilities | 23,571) | 19,724) | 19,950) | 14,601) | 26,973) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.58 | 0.59 | 0.63 | 0.75 | 0.41 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Altria Group Inc. | 0.33 | 0.47 | 0.53 | 0.55 | 0.26 | |
| PepsiCo Inc. | 0.32 | 0.20 | 0.23 | 0.41 | 0.28 | |
| Philip Morris International Inc. | 0.12 | 0.12 | 0.23 | 0.37 | 0.36 | |
| Cash Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 0.33 | 0.29 | 0.37 | 0.49 | 0.35 | |
| Cash Ratio, Industry | ||||||
| Consumer Staples | 0.24 | 0.25 | 0.31 | 0.34 | 0.25 | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 13,663 ÷ 23,571 = 0.58
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Coca-Cola Co. cash ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |