Coca Cola Story

KO -  USA Stock  

USD 54.51  0.03  0.06%

Coca-Cola is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 19th of April 2021. The stock is still going through above-average trading activities. Coca Cola Interest Coverage is quite stable at the moment as compared to the past year. The company's current value of Interest Coverage is estimated at 8.65. Long Term Debt to Equity is expected to rise to 2.24 this year, although the value of Net Income Per Employee will most likely fall to about 80.1 K. While some millenniums are indifferent towards consumer defensive space, it makes sense to outline Coca-Cola as a unique investment alternative. Let's inspect the possibilities of Coca Cola maintaining its debt level in May.
Published over two weeks ago
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Is Coca Cola (NYSE:KO) outlook still optimistic based on the latest debt level?
This firm reports 44.42 B of total liabilities with total debt to equity ratio (D/E) of 2.09, which may imply that Coca-Cola relies heavily on debt financing.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Coca Cola has an asset utilization ratio of 36.68 percent. This suggests that the company is making $0.37 for each dollar of assets. An increasing asset utilization means that Coca-Cola is more efficient with each dollar of assets it utilizes for everyday operations.
Coca Cola financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Coca Cola, including all of Coca Cola's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Coca Cola assets, the company is considered highly leveraged. Understanding the composition and structure of overall Coca Cola debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Coca Cola Total Debt

Coca-Cola liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Coca-Cola has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Coca Cola balance sheet include debt obligations and money owed to different Coca Cola vendors, workers, and loan providers. Below is the chart of Coca Cola main long-term debt accounts currently reported on its balance sheet.
You can use Coca-Cola financial leverage analysis tool to get a better grip on understanding its financial position

How important is Coca Cola's Liquidity

Coca Cola financial leverage refers to using borrowed capital as a funding source to finance Coca-Cola ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Coca Cola financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Coca Cola's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Coca Cola, but it might be worth checking our own buy vs. sell analysis

Coca Cola exotic insider transaction detected

Legal trades by Coca Cola insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Coca Cola insider trading alert for general transaction of phantom stock units by David Weinberg, the corporate stakeholder, on 7th of May 2021. This event was filed by Coca Cola Co with SEC on 2021-05-07. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper look at Coca Cola

The modest gains experienced by current holders of Coca Cola may raise some interest from institutional investors. The stock closed today at a share price of 53.68 on very low momentum in trading volume. The company directors and management have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in March. The stock standard deviation of daily returns for 30 days investing horizon is currently 0.98. The very small Stock volatility is a good signal to institutional investors with longer-term investment horizons.

Asset Breakdown

69.1 B
Assets Non Current
25.5 B
Goodwill
22 B
Current Assets
Total Assets95.59 Billion
Current Assets22 Billion
Assets Non Current69.13 Billion
Goodwill25.54 Billion
Tax Assets2.43 Billion

Will Coca Cola pull back in May 2021?

Expected Short fall just dropped to -0.81, may entail upcoming price decline.
As of the 18th of April 2021, Coca Cola shows the risk adjusted performance of 0.0922, and Mean Deviation of 0.8075. Coca-Cola technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to break down and interpolate data for nineteen technical drivers for Coca-Cola, which can be compared to its rivals. Please confirm Coca-Cola variance, as well as the relationship between the value at risk and skewness to decide if Coca-Cola is priced correctly, providing market reflects its regular price of 53.68 per share. Given that Coca Cola has jensen alpha of 0.1473, we suggest you to validate Coca-Cola's prevailing market performance to make sure the company can sustain itself at a future point.

Our Final Take On Coca Cola

Whereas some other entities within the beverages?non-alcoholic industry are still a little expensive, even after the recent corrections, Coca Cola may offer a potential longer-term growth to institutional investors. To summarize, as of the 18th of April 2021, our present 30 days recommendation on the company is Hold. We believe Coca Cola is overvalued with low probability of bankruptcy for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Coca-Cola. Please refer to our Terms of Use for any information regarding our disclosure principles.

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