Coca-Cola Consolidated(Coke) Financials: Interest Coverage Compared To Industry Average, Plus Other Key Ratios
Solvency Trend (Last 5 Years)
Solvency - interest coverage
This chart shows the historical trend of interest coverage for COKE compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Interest Coverage
Definition: Interest coverage tells you how easily the company can pay interest on its debt using operating profits. It’s like asking: “Can the company comfortably make its loan payments, or is it barely scraping by?” The higher the ratio, the safer. A very low ratio means debt payments may strain the business, especially if profits drop.
Interpretation:
• In '2021', COKE's interest coverage was 8.63, indicating the firm's ability to meet its interest obligations. Industry average for Beverages (Production/Distribution) in '2021' stood at 5.12.
• In '2022', COKE's interest coverage was 24.20, indicating the firm's ability to meet its interest obligations. The increase since '2021' reflects strengthening financial performance. Industry average for Beverages (Production/Distribution) in '2022' stood at 1.76. Industry average declined by 3.36 from previous year.
• In '2024', COKE's interest coverage was 464.56, indicating the firm's ability to meet its interest obligations. The increase since '2022' reflects strengthening financial performance. Industry average for Beverages (Production/Distribution) in '2024' stood at 4.14. Industry average increased by 2.38 compared to previous year.
Overall, COKE's interest coverage has been volatile but showed an upward trend over the past 3 years.
Formula: Interest Coverage = EBIT / Interest Expense
Good Range: Minimum 3-5 desirable; below 1 is risky.