Coca-Cola may not need much introduction, the world's most famous beverage company, I went to school when the textbook said that they can be resurrected with its brand value after zero overnight, and the teacher said it back then, and I am still impressed.
Coca-Cola also released its 2023 annual report, let's take a look, and by the way, a brief comparison with PepsiCo.
In 2023, Coca-Cola's revenue increased by 6% year-over-year4%, to $45.8 billion. In recent years, Coca-Cola's revenue has risen and fallen, but overall it is still growing, with a geometric average growth rate of 5 in the past five years9%, the growth rate is still slightly higher than the global GDP growth rate in recent years.
From the perspective of the revenue composition of major markets, North America is still the largest market accounting for more than one-third of the market, with a growth rate slightly higher than the average growth rate, and the proportion has increased slightly; The growth of the Asia-Pacific market has basically stagnated, the proportion has declined, and the ranking has also been surpassed by the Latin American market.
Coca-Cola's gross profit and net profit in 2023 have also hit a new high in recent years, and the growth rate of net profit is significantly higher than that of revenue, not only the growth rate of revenue in 2023, but also its geometric growth rate of 10 in the past five years7%, which is relatively fast.
Revenue growth in each quarter is relatively stable, but the growth rate does have a downward trend. Net profit fluctuates relatively largely, but the net profit amount of each quarter is around $2 billion, sometimes even higher, which is relatively stable.
Compared with PepsiCo, Coca-Cola's revenue has always been much lower than PepsiCo, and it has basically doubled in the past five years; In terms of revenue growth rate, PepsiCo's growth is relatively balanced, while Coca-Cola's revenue fluctuates greater. In terms of net profit, only in 2018 due to the special situation of non-operating (tax), Pepsi's profit was higher than that of Coca-Cola, and it was not as good as Coca-Cola in other years, but the gap was not large. In terms of net profit growth rate, it has experienced a process of rapid growth and decline, and the regularity is not strong.
Coca-Cola's gross profit margin is stable at about 60%, and there has been a downward trend in the past two years, but the magnitude is not large; The net profit margin of sales is more than 20%; ROE is in the middle of the two, with an average of more than 40%, and the ROE curve fluctuates more than the other two curves.
Coca-Cola's gross profit margin has always been higher than PepsiCo's, and the gap between the two is stable at about 5 percentage points, which may be related to the business composition of the two. Coca-Cola's business is relatively concentrated, mainly in beverages. After 2020, PepsiCo will be higher than Coca-Cola, which is mainly related to the different leverage utilization of the two, and PepsiCo's financial strategy is more aggressive than Coca-Cola.
Coca-Cola's debt-to-asset ratio has been in the early 70% in the past three years, lower than PepsiCo's in the early 80%, and the financial leverage is relatively weak. In terms of short-term solvency, it is a more traditional choice, and the quick ratio is controlled at about 1 times. Coca-Cola, of course, is still in a position to use leverage to increase its return on equity, but they have not chosen to follow the crowd in recent years.
The reason why leverage can also be enlarged is because the net cash flow of Coca-Cola's operating activities has been in the scale of tens of billions of US dollars in the past five years, and with such a strong hematopoietic function, the debt is not a big deal.
Coca-Cola