Coca Cola — Income Statement, Cash Flows & Balance Sheet
Is Coca-Cola profitable?
Coca-Cola's reported profit jumped sharply in 2025, but a large portion of that gain came from one-time asset sales rather than everyday operations.
| Metric | 2023 | 2024 | 2025 | Change (2024→2025) |
|---|---|---|---|---|
| Net Operating Revenues ($M) | $45,754 | $47,061 | $47,941 | +$880 / +1.9% |
| Gross Profit Margin | 59.5% | 61.1% | 61.6% | +0.5 pts |
| Other Operating Charges ($M) | $1,951 | $4,163 | $1,261 | −$2,902 |
| Operating Income ($M) | $11,311 | $9,992 | $13,762 | +$3,770 |
| Net Income to Shareholders ($M) | $10,714 | $10,631 | $13,107 | +$2,476 |
| Diluted EPS | $2.47 | $2.46 | $3.04 | +$0.58 |
Revenue grew modestly while the gross margin ticked higher, reflecting Coca-Cola's pricing power. The big swing in reported profit, however, was driven by two distorting forces working in opposite directions: 2024 was depressed by a $3.1 billion non-cash charge to revalue the fairlife acquisition earnout, while 2025 benefited from roughly $2.3 billion in gains on asset sales (notably Coke Consolidated and CCEP stakes) alongside a $960 million BodyArmor trademark impairment. Strip those out, and the underlying business is a steadily profitable operation, not a dramatic turnaround.
Where does Coca-Cola's revenue come from?
North America is Coca-Cola's single largest segment by revenue, and the U.S. business is growing faster than international markets.
| Segment / Geography | 2023 Revenue ($M) | 2025 Revenue ($M) | Change |
|---|---|---|---|
| United States | $16,550 | $19,127 | +$2,577 / +15.6% |
| International | $29,204 | $28,814 | −$390 / −1.3% |
| North America (segment operating income) | $4,634 | $5,070 | +$436 |
| EMEA (segment operating income) | $4,323 | $4,298 | −$25 |
| Bottling Investments (segment operating income) | $578 | $426 | −$152 |
U.S. revenue has grown meaningfully over two years, partly reflecting concentrate price increases and the fast-growing fairlife brand. International revenue slipped slightly in dollar terms, largely due to currency headwinds — a persistent challenge for a company earning roughly 60% of revenues outside the United States. The Bottling Investments segment, which covers company-owned bottling operations, earns the thinnest margins and has been shrinking as Coca-Cola continues refranchising (selling) those operations to independent partners.
Does Coca-Cola generate cash?
Coca-Cola generates solid operating cash flow, but heavy working-capital swings and a large acquisition payout obscured the picture in 2025.
| Metric | 2023 | 2024 | 2025 | Change (2024→2025) |
|---|---|---|---|---|
| Net Cash from Operations ($M) | $11,599 | $6,805 | $7,408 | +$603 |
| Capital Expenditures ($M) | $1,852 | $2,064 | $2,112 | +$48 |
| Free Cash Flow (GAAP ops minus capex) ($M) | $9,747 | $4,741 | $5,296 | +$555 |
| Dividends Paid ($M) | $7,952 | $8,359 | $8,779 | +$420 |
Operating cash flow in 2024 and 2025 was depressed by large working-capital outflows — most significantly, the $6.2 billion IRS tax litigation deposit in 2024 and the $6.2 billion fairlife earnout payment in early 2025. Excluding those unusual items, the underlying cash generation of the business is considerably stronger. Dividends continued to grow and consumed most of the reported free cash flow, which is typical for Coca-Cola and reflects its status as a long-standing dividend payer.
How strong is Coca-Cola's balance sheet?
Coca-Cola carries substantial long-term debt, but its liquidity cushion is ample and the debt load is manageable given the company's earnings power.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Cash + Short-term Investments ($M) | $12,848 | $13,872 | +$1,024 |
| Long-term Debt ($M) | $42,375 | $42,119 | −$256 |
| Total Debt (LT + current maturities) ($M) | $43,023 | $43,941 | +$918 |
| Equity Method Investments ($M) | $18,087 | $20,235 | +$2,148 |
| Total Equity ($M) | $26,372 | $34,275 | +$7,903 |
The debt pile is large in absolute terms but has been stable, and the weighted-average interest rate of roughly 3.3% is relatively modest. Liquidity looks solid, with nearly $14 billion in cash and short-term investments plus over $7 billion in unused credit lines. One notable item: Coca-Cola holds over $20 billion in equity method investments (stakes in bottling partners like CCEP and Monster Beverage), whose combined market value exceeds $34 billion — a significant hidden asset not fully reflected in the book balance sheet. The ongoing IRS tax dispute, which could ultimately cost up to $20 billion if Coca-Cola loses on appeal, remains the most material contingent risk on the balance sheet.