Coca-Cola Co. (NYSE:KO)

Debt to Equity Ratio

The debt to equity ratio exhibits a general declining trend from 2.21 to 1.52 over the observed periods, indicating a gradual reduction in reliance on debt financing relative to equity. Periodic fluctuations are observed, with minor increases mainly in the middle quarters, but the overall path demonstrates improving equity leverage management.

Debt to Capital Ratio

This ratio remains relatively stable throughout the periods, fluctuating narrowly between 0.60 and 0.69. This stability suggests consistent capital structure policies with a balanced use of debt and equity. The minor variations do not indicate any significant changes in capital strategy.

Debt to Assets Ratio

The debt to assets ratio shows a slight downward trend from 0.50 to around 0.45, signaling a modest decrease in the proportion of assets financed by debt. Some fluctuations occur, especially towards later periods where the ratio experiences brief increases, but the overall direction points to a modest strengthening of asset financing via equity or retained earnings.

Financial Leverage Ratio

This ratio decreases from 4.42 to 3.39 over the timeline, evidencing a reduction in the overall leverage applied by the company. The ratio captures how the company employs debt for operational leverage, and the steady decline suggests a conservative approach to leveraging assets, which potentially reduces financial risk.

Interest Coverage Ratio

A notable improvement is observed in the interest coverage ratio, rising from 6.64 to 10.58. This increase indicates enhanced ability to meet interest obligations from operating earnings. The ratio peaks substantially in mid-2022 periods before stabilizing at higher levels compared to the start. This trend reflects stronger earnings or lower interest expenses, contributing positively to the company’s financial stability.

Total Debt

The total debt figures demonstrate fluctuations over the observed quarters. Initially, a decline is noted from approximately $44.98 billion to about $39.15 billion between early 2021 and late 2022. This downward trend suggests efforts toward debt reduction or refinancing during this period. However, starting in early 2023, the total debt begins to increase again, reaching around $49.45 billion by mid-2025 before showing a slight decline in the last observed quarter. This pattern indicates a renewed leveraging or increased borrowing activity after the initial decline phase.

Equity Attributable to Shareowners

Equity attributable to shareowners exhibits a generally upward trend throughout the periods analyzed. Beginning near $20.36 billion, equity grows steadily with minor fluctuations, reaching over $31.25 billion by mid-2025. This consistent increase in equity reflects strengthening shareholder value and accumulation of retained earnings or capital injections, signaling financial stability and growth in the company's net asset base over time.

Debt to Equity Ratio

The debt to equity ratio shows a noticeable decline from 2.21 in early 2021 to a low near 1.52 by late 2025, although intermittent oscillations occur. This overall reduction in the leverage ratio aligns with the earlier reduction in total debt and increase in equity, suggesting improved capital structure and reduced financial risk. Periodic rises in the ratio likely correspond to the phases when debt increased more rapidly than equity, indicating targeted borrowing activities or shifts in financing strategy.

Summary

The financial data reveals a dynamic capital structure with an initial phase of debt reduction accompanied by an increase in equity, leading to a lower debt-to-equity ratio and presumably lower financial leverage. Subsequently, there is a period characterized by renewed debt accumulation, albeit supported by ongoing growth in equity, maintaining a moderate leverage level. Overall, these trends suggest prudent financial management with an emphasis on strengthening the equity base while selectively adjusting debt levels in response to strategic needs or market conditions.

Total Debt

Total debt exhibited a generally volatile pattern over the analyzed periods. Initially, debt decreased from approximately $44.98 billion to around $39.15 billion between April 2021 and December 2022. However, starting from the first quarter of 2023, total debt increased again, reaching a peak near $49.45 billion in June 2025 before slightly receding to about $47.42 billion by September 2025.

Total Capital

Total capital showed an overall upward trajectory, rising from $65.34 billion in April 2021 to a higher level of about $78.66 billion by September 2025. The growth was not entirely steady, with periods of minor decline and stabilization. Notable increases occurred particularly from late 2023 through to mid-2025, contributing to an expansion in the capital base.

Debt to Capital Ratio

The debt-to-capital ratio demonstrated a gradual decrease during the initial part of the timeframe, falling from 0.69 in April 2021 to a lower range around 0.60-0.62 in late 2023. Post-2023, the ratio oscillated modestly between 0.60 and 0.65, indicating a relatively stable relationship between debt and total capital despite fluctuations in the absolute values of these components.

This ratio suggests that while total debt increased in later periods, total capital also increased sufficiently to maintain a relatively consistent leverage level. The lowest ratio of 0.60 was recorded several times, reflecting the periods of strongest capital relative to debt.

The analysis of the quarterly financial data reveals several notable trends related to the company’s leverage and asset base over the examined periods.

Total Debt

Total debt exhibited a fluctuating but generally moderate upward trend over the period. Starting from approximately 44.98 billion US dollars, it decreased to a low near 39.15 billion by the end of 2022 before rising again to peak values above 49 billion in mid-2025. This pattern indicates phases of both debt reduction and increases, suggesting active debt management or changes in financing needs over time.

Total Assets

Total assets showed a consistent upward trend throughout the observed timeframe. Beginning at roughly 90 billion US dollars, assets gradually increased, crossing the 100 billion threshold in early 2024, and reaching over 106 billion by late 2025. This steady growth reflects continued expansion or asset accumulation by the company.

Debt to Assets Ratio

The debt to assets ratio declined from about 0.50 initially to a low near 0.42 by the end of 2022, suggesting improved capital structure and reduced leverage relative to the asset base during that interval. However, from early 2023 onwards, this ratio experienced a moderate rise, peaking near 0.48 in mid-2025, then slightly decreasing again. This indicates a recent trend toward increased leverage, despite overall asset growth.

In summary, the company experienced a phase of debt reduction and improved leverage until late 2022, followed by a period marked by rising debt levels and increased leverage in relation to assets. Simultaneously, the asset base expanded steadily across all quarters. These dynamics suggest strategic shifts in financing and asset management policies over time, potentially reflecting different market conditions or operational investment requirements.

The analysis of the quarterly financial data reveals several notable trends in the company's financial position over the period examined.

Total assets

The total assets experienced a generally upward trend from approximately 89,993 million US dollars to 106,045 million US dollars over the period. There were minor fluctuations in some quarters, with slight declines observed in mid-2022 and early 2023, but the overall direction remained positive. The most significant increase occurred in the latter part of the timeline, particularly from early 2024 to late 2025, indicating gradual asset accumulation or appreciation.

Equity attributable to shareowners

Equity showed a steady increase from around 20,355 million US dollars to 31,247 million US dollars. Despite some variability, particularly around mid-2022 and mid-2024 where slight decreases are noticeable, the equity base expanded significantly. This growth suggests improved shareholder value and retained earnings accumulation or capital injections over the examined period.

Financial leverage

Financial leverage ratios declined overall from a ratio of 4.42 down to 3.39, reflecting a reduction in reliance on debt relative to equity. The ratio demonstrated some short-term fluctuations, with minor increases mid-period, but the long-term trend is a decreasing leverage level. This suggests an improving financial structure with increased equity financing or reduced liabilities, which may imply lower financial risk.

In summary, the company shows strengthening financial fundamentals characterized by asset growth, rising equity, and decreasing financial leverage. This combination indicates an improvement in financial stability and potentially enhanced capacity for investment or risk absorption in forthcoming periods.

Earnings Before Interest and Tax (EBIT)

The EBIT figures demonstrate considerable volatility over the observed periods. Initially, there is a peak in July 2021 at 4398 million USD, followed by a decline through December 2021. The subsequent quarters show a mixed pattern of recoveries and decreases, with notable increases occurring in March 2023 (4425 million USD) and March 2025 (4444 million USD). However, peaks are followed by sharp decreases, indicating some instability in earnings generation. The highest recorded EBIT appears in June 2025 at 5241 million USD. Overall, the EBIT trend reflects cyclical fluctuations but signals an upward trajectory towards the end of the period.

Interest Expense

Interest expenses fluctuate moderately without a clear long-term trend. The expense starts relatively high in July 2021 at 780 million USD, sharply decreasing thereafter. Across the following periods, interest expenses remain mostly within the range of approximately 180 to 445 million USD. There are intermittent increases, for example in December 2022 and December 2023, suggesting periodic increases in borrowing costs or debt levels. The figures remain contained relative to EBIT levels, which is consistent with the company's ability to cover interest costs effectively.

Interest Coverage Ratio

The interest coverage ratio shows a general declining trend from April 2021 through December 2021, falling from 6.64 to 8.78 before experiencing a significant improvement starting in April 2022, where the ratio jumps to 10.81 and peaks at 17.35 in September 2022. This indicates a stronger ability to service interest expenses during this mid-period. Subsequent ratios decline gradually but remain well above 8.0, settling around 10.58 by September 2025, indicating sustained healthy coverage of interest costs despite fluctuations in both EBIT and interest expenses. Overall, the ratio reflects ample earnings buffer relative to interest obligations throughout the timeframe.