KO ROE - Return on Equity
Profitability analysis for The Coca-Cola Company
Stock Price
$83.49
+1.04% today
Return on Equity (ROE)
0.0%
Poor - Low capital efficiency
Key Profitability Metrics
Return on Equity
0.0%
Profit per dollar of equity
Return on Assets
0.0%
Profit per dollar of assets
Return on Invested Capital
0.0%
Profit per dollar invested
Industry Comparison
KO ROE
0.0%
Consumer Defensive Average
12.0%
Difference
-12.0%
Below industry by 100%
KO is underperforming Consumer Defensive peers, suggesting potential for operational improvements.
DuPont Analysis - ROE Breakdown
ROE can be decomposed into three components using the DuPont formula:
ROE = Net Margin × Asset Turnover × Equity Multiplier
Net Profit Margin
27.8%
Strong pricing power
Asset Turnover
0.00x
Capital intensive
Equity Multiplier
0.00x
Conservative
0.0% = 27.8% × 0.00 × 0.00
What ROE Means for Investors
Capital Efficiency
KO's negative ROE indicates the company is not generating positive returns on equity, which is a red flag for investors.
Competitive Advantage
ROE below industry average may indicate competitive pressures, operational inefficiencies, or industry headwinds affecting The Coca-Cola Company.
Growth Potential
With moderate ROE, KO may need external financing or debt to fund significant growth initiatives, potentially diluting shareholders or increasing leverage.
Leverage Consideration
KO has conservative leverage (0.0x equity multiplier), suggesting the ROE reflects genuine operational efficiency rather than financial engineering.
ROE Calculation Data
Most Recent Quarter
Net Income
$$13.11B
Shareholders Equity
$32.17B
Formula
ROE = (Net Income / Shareholders Equity) × 100
Analyze KO in Depth
View complete financial statements, quant models, and AI-powered insights
Frequently Asked Questions
What is KO ROE (Return on Equity)?
KO's Return on Equity (ROE) is 0.0%, which is considered poor. ROE measures how efficiently The Coca-Cola Company generates profit from shareholders' equity. A negative ROE indicates the company is not profitable.
Is KO ROE good or bad?
KO's ROE of 0.0% is poor and below the Consumer Defensive average of approximately 12.0%. Low capital efficiency. It trails industry peers by 100%.
What is the difference between ROE, ROA, and ROIC?
ROE (Return on Equity) at 0.0% measures returns on shareholder equity. ROA (Return on Assets) at 0.0% measures how efficiently KO uses its total assets. ROIC (Return on Invested Capital) at 0.0% shows returns on all capital invested, including debt. All three metrics help evaluate The Coca-Cola Company's profitability from different angles.
How does KO generate its ROE?
KO generates its 0.0% ROE through the DuPont formula: Net Margin (27.8%) × Asset Turnover (0.00) × Equity Multiplier (0.00). This shows strong pricing power and cost control, capital-intensive operations, and conservative capital structure.
Should I invest in KO based on ROE?
While KO's ROE of 0.0% is poor, ROE alone shouldn't determine investment decisions. Negative ROE indicates profitability concerns that require investigation. Consider ROE alongside other metrics like debt levels, growth rates, valuation multiples, and industry trends before investing.
What factors affect KO Return on Equity?
KO's ROE is affected by three key drivers: (1) Profitability - net margins from pricing power and cost management, (2) Efficiency - how well The Coca-Cola Company uses its assets to generate sales, and (3) Leverage - the amount of debt used to finance operations. Consumer Defensive sector dynamics, competitive positioning, management quality, and economic conditions all impact these drivers.
Disclaimer: ROE analysis is based on publicly available financial data and should not be considered financial advice. High ROE can be misleading if driven primarily by excessive leverage. Always analyze multiple metrics and consider your own research before making investment decisions.