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KO (Coca-Cola Co) Interest Coverage : 8.27 (As of Sep. 2024)


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What is Coca-Cola Co Interest Coverage?

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 Sep. 2024 was $3,516 Mil. Coca-Cola Co's Interest Expense for the three months ended in Sep. 2024 was $-425 Mil. Coca-Cola Co's interest coverage for the quarter that ended in Sep. 2024 was 8.27. 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: 8.25


KO's Interest Coverage is ranked worse than
69.05% of 84 companies
in the Beverages - Non-Alcoholic industry
Industry Median: 19.475 vs KO: 8.25

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.

* Premium members only.

Coca-Cola Co Interest Coverage Chart

Coca-Cola Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.86 6.77 6.91 13.65 8.57

Coca-Cola Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.69 5.71 9.62 9.50 8.27

Competitive Comparison of Coca-Cola Co's Interest Coverage

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's Interest Coverage Distribution in the Beverages - Non-Alcoholic Industry

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 Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, Coca-Cola Co's Interest Expense was $-425 Mil. Its Operating Income was $3,516 Mil. And its Long-Term Debt & Capital Lease Obligation was $42,994 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*3516/-425
=8.27

* 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.

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

Thank you for viewing the detailed overview of Coca-Cola Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Coca-Cola Co Business Description

Address
One Coca-Cola Plaza, Atlanta, GA, USA, 30313
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 revenue overseas, with a significant portion from emerging economies in Latin America and Asia-Pacific.
Executives
Nancy Quan officer: Senior Vice President THE COCA-COLA COMPANY, ONE COCA-COLA PLAZA, ATLANTA GA 30313
James Quincey other: Group President THE COCA-COLA COMPANY, ONE COCA-COLA PLAZA, ATLANTA GA 30313
Jennifer K Mann officer: Senior Vice President THE COCA-COLA COMPANY, ONE COCA-COLA PLAZA, ATLANTA GA 30313
Lisa Chang other: Chief People Officer 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
Manuel Arroyo other: Group President 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
Nikolaos Koumettis 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
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
Mark Randazza officer: Principal Accounting Officer 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
Erin L May officer: Vice President & Controller C/O THE COCA-COLA COMPANY, ONE COCA-COLA PLAZA, ATLANTA GA 30313