Is the business good?
How good a business is KO?
Coca-Cola Company (The) earns 18% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
18%
Return on invested capital · cost of capital 9.0% · 8.8 points above what the capital costs: growth creates value
- Operating margin
- 29%
Operating margin · Beverages - Non-Alcoholic median 16% · 12 months to Q1 2026
- Cash conversion
- 0.92×
Cash conversion · −0.09× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- +0.02%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 27% |
| FY2021 | 27% |
| FY2022 | 25% |
| FY2023 | 25% |
| FY2024 | 21% |
| FY2025 | 29% |
Details›
- Gross margin12 months to Q1 2026
- 62%
- Operating margin12 months to Q1 2026
- 29%
- Net margin12 months to Q1 2026
- 28%
- Free cash flow margin
- 25%
- Revenue, trailing twelve months
- $49.3B
- Free cash flow, trailing twelve months
- $12.6B
- Net income, trailing twelve months
- $13.7B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 18%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Beverages - Non-Alcoholic
Ranks #2 of 10 by Smart Score