Coca-Cola Co (Coca-Cola Co) Interest Coverage

: 5.68 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Coca-Cola Co's Operating Income for the three months ended in Dec. 2023 was $2,346 Mil. Coca-Cola Co's Interest Expense for the three months ended in Dec. 2023 was $-413 Mil. Coca-Cola Co's interest coverage for the quarter that ended in Dec. 2023 was 5.68. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Coca-Cola Co's Interest Coverage or its related term are showing as below:

KO' s Interest Coverage Range Over the Past 10 Years
Min: 6.77 Med: 10.64 Max: 21.26
Current: 8.57

KO's Interest Coverage is ranked worse than
69.62% of 79 companies
in the Beverages - Non-Alcoholic industry
Industry Median: 17.45 vs KO: 8.57

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Coca-Cola Co Interest Coverage Historical Data

The historical data trend for Coca-Cola Co's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Coca-Cola Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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10.86

6.77

6.91

13.65

8.57

Coca-Cola Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															7.10	9.27	9.93	9.70	5.68

Competitive Comparison

For the Beverages - Non-Alcoholic subindustry, Coca-Cola Co's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Coca-Cola Co Interest Coverage Distribution

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Coca-Cola Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Coca-Cola Co's Interest Coverage falls into.

Coca-Cola Co Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Coca-Cola Co's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Coca-Cola Co's Interest Expense was $-1,527 Mil. Its Operating Income was $13,083 Mil. And its Long-Term Debt & Capital Lease Obligation was $35,547 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	13083	/	-1527
	=	8.57

Coca-Cola Co's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Coca-Cola Co's Interest Expense was $-413 Mil. Its Operating Income was $2,346 Mil. And its Long-Term Debt & Capital Lease Obligation was $35,547 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	2346	/	-413
	=	5.68

The higher the ratio, the stronger the company's Financial Strength is.

Coca-Cola Co (NYSE:KO) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Coca-Cola Co Interest Coverage Related Terms

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Coca-Cola Co (Coca-Cola Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Non-Alcoholic » Coca-Cola Co (NYSE:KO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

KO:Peru KO:Mexico 1KO:Italy CCC3d:UK 0QZK:UK CCC:Germany CCC3:Germany CCC3:Germany CCC3:Germany CCC3:Germany KO:Chile COLA:Canada COCA34:Brazil KO:Austria KO:Argentina

Address

One Coca-Cola Plaza, Atlanta, GA, USA, 30313

Website

https://www.coca-colacompany.com

Founded in 1886, Atlanta-headquartered Coca-Cola is the world's largest nonalcoholic beverage company, with a strong portfolio of 200 brands covering key categories including carbonated soft drinks, water, sports, energy, juice, and coffee. Together with bottlers and distribution partners, the company sells finished beverage products bearing Coca-Cola and licensed brands through retailers and food-service locations in more than 200 countries and regions globally. Coca-Cola generates around two thirds of its total revenues overseas, with a significant portion from emerging economies in Latin America and Asia-Pacific.

Executives

James Quincey	other: Group President	THE COCA-COLA COMPANY, ONE COCA-COLA PLAZA, ATLANTA GA 30313
Henrique Braun	other: Operating Unit President	C/O THE COCA-COLA COMPANY, ONE COCA-COLA PLAZA, ATLANTA GA 30313
Beatriz R Perez	officer: Senior Vice President	ONE COCA-COLA PLAZA, ATLANTA GA 30313
Monica Howard Douglas	officer: SVP & General Counsel	535 MADISON AVENUE, 20TH FLOOR, NEW YORK NY 10022
John Murphy	other: Group President	THE COCA-COLA COMPANY, ONE COCA-COLA PLAZA, ATLANTA GA 30313
Thomas Sinnickson Gayner	director	C/O MARKEL CORP, 4521 HIGHWOODS PARKWAY, GLEN ALLEN VA 23060
Amity Millhiser	director	C/O THE COCA-COLA COMPANY, ONE COCA-COLA PLAZA, ATLANTA GA 30313
Manuel Arroyo	other: Group President	THE COCA-COLA COMPANY, ONE COCA-COLA PLAZA, ATLANTA GA 30313
Nikolaos Koumettis	other: Group President	THE COCA-COLA COMPANY, ONE COCA-COLA PLAZA, ATLANTA GA 30313
Nancy Quan	officer: Senior Vice President	THE COCA-COLA COMPANY, ONE COCA-COLA PLAZA, ATLANTA GA 30313
Erin L May	officer: Vice President & Controller	C/O THE COCA-COLA COMPANY, ONE COCA-COLA PLAZA, ATLANTA GA 30313
Bruno Pietracci	other: President, Latin America OU	C/O THE COCA-COLA COMPANY, ONE COCA-COLA PLAZA, ATLANTA GA 30313
Brian John Smith	other: Group President	THE COCA-COLA COMPANY, ONE COCA-COLA PLAZA, ATLANTA GA 30313
Mark Randazza	officer: Principal Accounting Officer	THE COCA-COLA COMPANY, ONE COCA-COLA PLAZA, ATLANTA GA 30313
Allen Herbert A Iii	director	ALLEN & COMPANY LLC, 711 FIFTH AVENUE, NEW YORK NY 10022