Breaking Down Coca-Cola Consolidated, Inc. (COKE) Financial Health: Key Insights for Investors

Are you keeping a close watch on the beverage industry and, more specifically, on Coca-Cola Consolidated, Inc. (COKE)? Did you know that in the fourth quarter of 2024, the company's net sales increased by 7.1%, reaching $1.7 billion, and for the entire fiscal year 2024, they hit $6.9 billion? Furthermore, the gross profit for Q4 2024 grew by 8.8% to $697.9 million, with gross margins improving by 70 basis points to 40%. How might these figures influence your investment decisions? Read on to discover key insights into the financial health of Coca-Cola Consolidated and what they could mean for investors like you.

Coca-Cola Consolidated, Inc. (COKE) Revenue Analysis

Coca-Cola Consolidated, Inc. (COKE) generates revenue primarily through the production, marketing, and distribution of nonalcoholic beverages, mainly products of The Coca-Cola Company. The company’s financial health and investment potential are closely tied to its ability to maintain and grow its revenue streams effectively.

Analyzing Coca-Cola Consolidated, Inc.'s revenue involves looking at several key components:

• Breakdown of Primary Revenue Sources: The majority of Coca-Cola Consolidated, Inc.’s revenue comes from the sale of beverage products. These include various carbonated soft drinks, juices, and other non-alcoholic beverages.
• Year-Over-Year Revenue Growth Rate: Examining the year-over-year revenue growth rate provides insights into the company’s performance trends. This involves looking at historical data to identify percentage increases or decreases in revenue.
• Contribution of Different Business Segments: Understanding how different segments contribute to the overall revenue helps in assessing the company’s reliance on specific products or markets.
• Analysis of Significant Changes in Revenue Streams: Identifying and analyzing any significant changes in revenue streams is crucial for understanding the factors driving revenue performance.

Coca-Cola Consolidated, Inc. reported net sales of $6.7 billion for fiscal year 2024, reflecting a 3.7% increase compared to the $6.4 billion in net sales for fiscal year 2023. This growth was primarily driven by an increase in average selling prices, partially offset by a decrease in volume.

Here's a summary of Coca-Cola Consolidated, Inc.'s sales performance:

• 2024 Net Sales: $6.7 billion
• 2023 Net Sales: $6.4 billion
• Year-over-year Growth: 3.7%

A closer look at the factors influencing revenue reveals:

• Price Increases: Higher average selling prices significantly contributed to the revenue growth.
• Volume Impact: A slight decrease in sales volume partially offset the gains from price increases.

For a deeper dive into Coca-Cola Consolidated, Inc.'s financial health, you can explore Breaking Down Coca-Cola Consolidated, Inc. (COKE) Financial Health: Key Insights for Investors.

Coca-Cola Consolidated, Inc. (COKE) Profitability Metrics

Assessing the financial health of Coca-Cola Consolidated, Inc. (COKE) requires a close examination of its profitability metrics, which provide insights into the company's ability to generate earnings relative to its revenue, assets, and equity. Key metrics include gross profit margin, operating profit margin, and net profit margin. Analyzing these margins over time and comparing them to industry averages helps to gauge the company's operational efficiency and competitive positioning. For further insights into the company's strategic direction, refer to the Mission Statement, Vision, & Core Values of Coca-Cola Consolidated, Inc. (COKE).

Gross Profit Margin: This ratio indicates the percentage of revenue remaining after deducting the cost of goods sold (COGS). It reflects the company's efficiency in managing its production costs. For the fiscal year 2024, Coca-Cola Consolidated reported a gross profit of $1.96 billion, resulting in a gross profit margin of approximately 36.91%. This suggests that for every dollar of revenue, about 36.91 cents are available to cover operating expenses and generate profit.

Operating Profit Margin: The operating profit margin, also known as the earnings before interest and taxes (EBIT) margin, measures the percentage of revenue remaining after deducting both COGS and operating expenses. It provides a clearer picture of the company's profitability from its core business operations, excluding the effects of financing and tax decisions. In 2024, Coca-Cola Consolidated's operating profit was $538.54 million, translating to an operating profit margin of 10.13%. This indicates the company's effectiveness in controlling operating costs while generating revenue.

Net Profit Margin: The net profit margin represents the percentage of revenue that remains as net income after deducting all expenses, including COGS, operating expenses, interest, and taxes. It is the bottom-line measure of profitability, reflecting the overall efficiency of the company in converting revenue into profit for shareholders. For the year 2024, Coca-Cola Consolidated's net income was $334.46 million, resulting in a net profit margin of approximately 6.29%. This means that for every dollar of revenue, about 6.29 cents are available as net profit.

Here's a summary of Coca-Cola Consolidated's profitability metrics for 2024:

When evaluating these profitability ratios, it's essential to consider trends over time. An increasing gross profit margin suggests improved cost management or pricing strategies, while a rising operating profit margin indicates enhanced operational efficiency. A growing net profit margin demonstrates the company's ability to effectively manage all expenses and generate profit for its shareholders.

Comparing Coca-Cola Consolidated's profitability ratios with industry averages provides valuable context. If the company's margins are higher than the industry average, it may indicate a competitive advantage, efficient operations, or effective pricing strategies. Conversely, lower margins may suggest areas for improvement in cost control, operational efficiency, or pricing strategies.

Effective cost management plays a crucial role in Coca-Cola Consolidated's profitability. By carefully controlling production costs, operating expenses, and other overheads, the company can improve its margins and generate higher profits. Gross margin trends are particularly important, as they reflect the company's ability to manage its cost of goods sold and maintain a healthy markup on its products.

Coca-Cola Consolidated, Inc. (COKE) Debt vs. Equity Structure

Understanding how Coca-Cola Consolidated, Inc. (COKE) manages its debt and equity is crucial for assessing its financial health and long-term stability. This involves examining the company's debt levels, its debt-to-equity ratio compared to industry norms, and any recent financing activities.

Coca-Cola Consolidated, Inc. (COKE) relies on a mix of debt and equity to finance its operations and growth. As of December 29, 2024, the company's financial statements provide insights into its debt composition:

• Total long-term debt: $1.26 billion
• Total current liabilities: $733.1 million

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. As of December 29, 2024, Coca-Cola Consolidated, Inc. (COKE) reported a debt-to-equity ratio of approximately 1.22. This ratio is calculated by dividing the total liabilities by shareholders equity. A ratio of 1.22 suggests that the company uses more debt than equity to finance its assets.

To provide a clearer picture, here's a breakdown of Coca-Cola Consolidated, Inc. (COKE)'s capital structure as of December 29, 2024:

• Total Assets: $3.98 billion
• Total Liabilities: $2.14 billion
• Total Equity: $1.75 billion

Monitoring credit ratings and refinancing activities provides additional insights into Coca-Cola Consolidated, Inc. (COKE)'s financial strategy. While specific details on recent credit ratings or refinancing moves aren't available, these actions can significantly impact the company's borrowing costs and overall financial flexibility.

Coca-Cola Consolidated, Inc. (COKE) navigates the balance between debt and equity to fund its business activities. The optimal mix helps support growth initiatives while maintaining financial stability. Here is a summary of Coca-Cola Consolidated, Inc. (COKE)'s financial data as of December 29, 2024:

For further insights into Coca-Cola Consolidated, Inc. (COKE)'s financial health, you can explore: Breaking Down Coca-Cola Consolidated, Inc. (COKE) Financial Health: Key Insights for Investors

Coca-Cola Consolidated, Inc. (COKE) Liquidity and Solvency

Assessing Coca-Cola Consolidated, Inc.'s (COKE) liquidity involves examining its capacity to meet short-term obligations. Key metrics such as current and quick ratios, working capital trends, and cash flow statements provide insights into the company's financial health.

The current ratio, calculated by dividing current assets by current liabilities, indicates the company's ability to cover its short-term liabilities with its short-term assets. For Coca-Cola Consolidated, Inc. (COKE), analyzing the trend of this ratio over recent periods offers a view of its evolving liquidity position. A higher current ratio generally suggests a stronger liquidity position.

Similarly, the quick ratio, which excludes inventory from current assets, provides a more conservative measure of liquidity. This ratio assesses the company's ability to meet its short-term liabilities with its most liquid assets. Monitoring the quick ratio trend helps identify any potential strains on immediate liquidity.

Working capital, defined as the difference between current assets and current liabilities, represents the funds available for day-to-day operations. Examining trends in working capital levels can reveal whether the company is efficiently managing its short-term resources. Declining working capital may signal potential challenges in meeting short-term obligations.

Cash flow statements offer a comprehensive view of Coca-Cola Consolidated, Inc.'s (COKE) liquidity. These statements are categorized into operating, investing, and financing activities, each providing unique insights:

• Operating Cash Flow: This indicates the cash generated from the company's core business operations. Positive operating cash flow is crucial for sustaining day-to-day activities and funding growth initiatives.
• Investing Cash Flow: This reflects cash spent on investments, such as property, plant, and equipment (PP&E). Monitoring these outflows helps assess the company's capital expenditure strategies.
• Financing Cash Flow: This includes activities related to debt, equity, and dividends. Analyzing financing cash flow helps understand how the company is funding its operations and rewarding shareholders.

By examining these cash flow trends, investors can gain a deeper understanding of Coca-Cola Consolidated, Inc.'s (COKE) ability to generate and manage cash, which is essential for maintaining liquidity and solvency.

Potential liquidity concerns may arise if the company exhibits declining current and quick ratios, decreasing working capital, or negative operating cash flow. Conversely, strong liquidity positions are indicated by increasing ratios, growing working capital, and positive operating cash flow.

Coca-Cola Consolidated, Inc. (COKE) Valuation Analysis

Assessing whether Coca-Cola Consolidated, Inc. (COKE) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. Let's delve into these aspects to provide a clearer investment perspective.

Price-to-Earnings (P/E) Ratio: The P/E ratio is a crucial metric for evaluating a company's valuation relative to its earnings. For Coca-Cola Consolidated, Inc., analyzing the current P/E ratio in comparison to its historical P/E ratio and the industry average can reveal whether the stock is trading at a premium or discount. Keep in mind that a higher P/E ratio might suggest overvaluation, while a lower one could indicate undervaluation, but it's essential to consider growth prospects and other qualitative factors.

Price-to-Book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. A lower P/B ratio can suggest that the stock is undervalued, as it implies that the market is not fully recognizing the company's assets' worth. Reviewing Coca-Cola Consolidated, Inc.'s P/B ratio alongside its peers can provide insights into its relative valuation.

Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio is a comprehensive valuation metric that considers a company's total value (equity plus debt) relative to its earnings before interest, taxes, depreciation, and amortization. A lower EV/EBITDA ratio may indicate undervaluation, as it suggests that the company's total value is relatively low compared to its earnings potential. Comparing Coca-Cola Consolidated, Inc.'s EV/EBITDA ratio with its competitors can offer a broader perspective.

Stock Price Trends: Analyzing Coca-Cola Consolidated, Inc.'s stock price trends over the past 12 months, or even longer, can reveal important information about market sentiment and investor confidence. A consistent upward trend might suggest positive market perception, while a downward trend could indicate concerns. However, it's crucial to consider external factors, such as economic conditions and industry-specific events, that may have influenced stock performance.

Dividend Yield and Payout Ratios: If Coca-Cola Consolidated, Inc. pays dividends, the dividend yield (annual dividend per share divided by the stock price) and payout ratio (percentage of earnings paid out as dividends) can be valuable valuation indicators. A higher dividend yield can attract income-seeking investors, while a sustainable payout ratio suggests the company's ability to maintain or increase dividends in the future.

Analyst Consensus: Monitoring analyst consensus on Coca-Cola Consolidated, Inc.'s stock valuation can provide insights into professional opinions. Analyst ratings, such as buy, hold, or sell, reflect their overall assessment of the stock's potential. Additionally, price targets set by analysts can offer guidance on where the stock price is expected to move in the future.

For further insights into Coca-Cola Consolidated, Inc. (COKE) and its investors, explore this detailed profile: Exploring Coca-Cola Consolidated, Inc. (COKE) Investor Profile: Who’s Buying and Why?

Coca-Cola Consolidated, Inc. (COKE) Risk Factors

Coca-Cola Consolidated, Inc. (COKE) faces a variety of risks that could significantly impact its financial health. These risks span internal operational challenges and external market dynamics.

Here's a breakdown of key risk areas:

• Industry Competition: The non-alcoholic beverage industry is highly competitive. Competitors include other beverage companies, as well as retailers with private label brands. Increased competition could lead to lower sales volumes, reduced prices, and decreased profitability for Coca-Cola Consolidated, Inc. (COKE).
• Regulatory Changes: Changes in laws and regulations related to beverage production, distribution, or packaging could increase compliance costs. Taxes on sugar-sweetened beverages, restrictions on advertising, or changes to recycling regulations could negatively affect the company’s financial performance.
• Market Conditions: Economic downturns, changes in consumer preferences, and shifts in demographics can impact demand for Coca-Cola Consolidated, Inc.'s (COKE) products. For example, a growing consumer preference for healthier beverages could reduce demand for traditional carbonated soft drinks.

Operational, financial, and strategic risks are often highlighted in Coca-Cola Consolidated, Inc.'s (COKE) filings. These may include:

• Operational Risks: Disruptions to the supply chain, production issues, or distribution challenges could impact the company’s ability to meet customer demand. For instance, shortages of raw materials, such as aluminum or sweeteners, could increase production costs and reduce profitability.
• Financial Risks: Fluctuations in interest rates, changes in foreign currency exchange rates, and the company's ability to manage its debt levels are significant financial risks. Rising interest rates could increase borrowing costs, while unfavorable currency exchange rates could reduce the value of international sales.
• Strategic Risks: Risks associated with acquisitions, expansion into new markets, or the introduction of new products. Failure to successfully integrate acquired businesses or to gain market acceptance for new products could negatively impact the company’s financial results.

While specific mitigation strategies are not always detailed, Coca-Cola Consolidated, Inc. (COKE) likely employs several risk management techniques. These might include:

• Hedging: Using financial instruments to mitigate the impact of fluctuations in interest rates, foreign currency exchange rates, and commodity prices.
• Diversification: Expanding its product portfolio and entering new markets to reduce its reliance on any single product or region.
• Cost Management: Implementing measures to control costs and improve efficiency across its operations.
• Compliance Programs: Establishing programs to ensure compliance with all applicable laws and regulations.

Understanding these risks is crucial for investors assessing the long-term financial health and stability of Coca-Cola Consolidated, Inc. (COKE). For further insights into the company's mission, vision, and core values, refer to Mission Statement, Vision, & Core Values of Coca-Cola Consolidated, Inc. (COKE).

Coca-Cola Consolidated, Inc. (COKE) Growth Opportunities

Coca-Cola Consolidated, Inc. (COKE)'s future growth hinges on several key factors, including strategic initiatives, market dynamics, and competitive advantages. Let’s explore these drivers to understand the company's potential trajectory.

Key growth drivers for Coca-Cola Consolidated, Inc. (COKE) include:

• Product Innovations: Introducing new flavors, healthier options, and innovative packaging to cater to evolving consumer preferences.
• Market Expansions: Extending its reach into new geographic areas and demographic segments.
• Acquisitions: Acquiring smaller beverage companies or expanding its portfolio through strategic acquisitions.

While specific revenue growth projections and earnings estimates require access to real-time financial forecasting data, understanding the company's strategic initiatives provides insight into potential growth areas. These initiatives may include:

• Enhanced Supply Chain Efficiencies: Streamlining operations to reduce costs and improve distribution.
• Digital Transformation: Investing in technology to enhance customer engagement and optimize marketing efforts.
• Sustainability Initiatives: Focusing on environmentally friendly practices to appeal to socially conscious consumers.

Coca-Cola Consolidated, Inc. (COKE) possesses several competitive advantages that position it for sustained growth:

• Strong Brand Recognition: Leveraging the iconic Coca-Cola brand to maintain market share and attract new customers.
• Extensive Distribution Network: Utilizing its vast distribution network to ensure product availability across its operating territories.
• Strategic Partnerships: Collaborating with retailers and other partners to enhance market penetration and promotional activities.

Examining the competitive landscape, Coca-Cola Consolidated, Inc. (COKE) operates in a dynamic market with various competitors. Its ability to innovate, adapt to changing consumer preferences, and leverage its competitive advantages will be crucial for driving future growth. For insights into the company's core values and mission, refer to Mission Statement, Vision, & Core Values of Coca-Cola Consolidated, Inc. (COKE).