Is Coca Cola (NYSE:KO) ripping up institutional investors?

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 many traders today are more concerned about the preservation of capital over market returns, Coca-Cola could be one exception. We will evaluate if Coca Cola shares are reasonably priced going into May. Here I will also expose some primary fundamental factors affecting Coca Cola's services, and outline how it will impact the outlook for investors this year.
Published over a year ago
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Reviewed by Gabriel Shpitalnik

This firm generated the yearly revenue of 33.01 B. Reported Net Income was 7.75 B with gross profit of 19.58 B.
The performance of The Coca Cola in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Coca Cola's stock prices. When investing in Coca Cola, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Coca Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Coca Cola carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

And What about dividends?

A dividend is the distribution of a portion of Coca Cola earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Coca Cola dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Coca one year expected dividend income is about USD1.35 per share.
As of the 19th of March 2024, Dividends Paid is likely to grow to about (7.6 B). In addition to that, Dividend Yield is likely to drop to 0.02.
Last ReportedProjected for 2024
Dividends Paid-8 B-7.6 B
Dividend Yield 0.03  0.02 
Dividend Payout Ratio 0.74  0.57 
Dividend Paid And Capex Coverage Ratio 1.90  1.81 
Investing in dividend-paying stocks, such as The Coca Cola is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Coca Cola must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Coca Cola. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Coca Cola's Liquidity

Coca Cola financial leverage refers to using borrowed capital as a funding source to finance The 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. Financial leverage can amplify the potential profits to Coca Cola's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Coca Cola's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Coca Cola's total debt and its cash.

What do experts say about Coca?

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.
Analysis Consensus

A Deeper look at Coca

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 technical analysis suggests possible reversion

The semi deviation is down to 0.98 as of today. Coca-Cola has relatively low volatility with skewness of -0.36 and kurtosis of -0.4. However, we advise all investors to independently investigate Coca-Cola to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Coca Cola's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Coca Cola's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Takeaway on Coca Cola Investment

Whereas other companies under the beverages—non-alcoholic industry are still a bit expensive, Coca Cola may offer a potential longer-term growth to institutional investors. While some institutional investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Coca Cola.

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Editorial Staff

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 Raphi Shpitalnik do not own shares of The Coca Cola. Please refer to our Terms of Use for any information regarding our disclosure principles.

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