Shmoney AI – AI Financial Analyst
Financials Analysis
Income Statement
The financial health of KO appears strong based on the provided data. Profitability metrics such as gross profit and net income have shown consistent growth over the past three years, with gross profit increasing from $23.3 billion in 2021 to $27.2 billion in 2023, and net income rising from $9.8 billion to $10.7 billion in the same period. Liquidity seems adequate, as the company maintains a healthy gross margin and operating income. Solvency is stable, with manageable interest expenses relative to operating income, and the company has demonstrated the ability to generate sufficient earnings before interest and taxes (EBIT) to cover its debt obligations. Overall, KO exhibits strong financial stability, with consistent revenue growth and profitability, supported by effective cost management and operational efficiency.
Balance Sheet
The financial health of KO appears to be stable and improving. Over the past three years, the company has shown consistent growth in total assets, increasing from $94.35 billion in 2021 to $106.27 billion in the latest quarter of 2024. This growth is supported by an increase in cash and short-term investments, which rose from $10.93 billion in 2021 to $16.38 billion in 2024. The company’s total liabilities have also increased, but at a manageable rate, from $71.36 billion in 2021 to $79.75 billion in 2024. Shareholder equity has shown a positive trend, growing from $22.99 billion in 2021 to $26.52 billion in 2024, indicating a strengthening financial position. The company’s retained earnings have also increased, reflecting profitability and reinvestment into the business. Overall, KO demonstrates strong liquidity, solvency, and profitability metrics, suggesting a robust financial health.
Cash Flow Data
The financial health of KO appears stable and strong based on the provided cash flow and profitability data. The company demonstrates consistent operating cash flow generation, with $11.6 billion in 2023, $11.0 billion in 2022, and $12.6 billion in 2021. Net income has also been stable, with $10.7 billion in 2023, $9.5 billion in 2022, and $9.8 billion in 2021, indicating strong profitability. Dividend payouts are substantial but well-covered by operating cash flows, showing a commitment to returning value to shareholders while maintaining financial stability. Capital expenditures are moderate, and the company has managed its financing activities prudently, with no alarming increases in debt. Overall, KO exhibits strong profitability, liquidity, and solvency metrics, reflecting excellent financial health.
Sentiment Analysis
News Sources 1
The sentiment around Coca-Cola (KO) appears to be moderately positive. The company has shown consistent growth over the years, with a 5-year growth rate of 7.65% and a 1-year return of 9.97%, outperforming its industry but underperforming the broader market index. Analysts have a strong buy sentiment for the stock, with a price target suggesting a potential upside. Coca-Cola’s commitment to sustainability and innovation, along with its strong market position, are highlighted as strengths. However, challenges such as changing consumer preferences, regulatory pressures, and competition are noted. Overall, the sentiment reflects confidence in Coca-Cola’s ability to adapt and grow, albeit with some challenges to address.
News Sources 2
The sentiment analysis for KO indicates a cautious outlook due to the impact of economic policy uncertainty on consumer sentiment and industrial production. The data suggests that increased policy uncertainty correlates with a decline in consumer sentiment and industrial production, which could negatively affect KO’s performance. This is supported by research showing a 4.4% decline in consumer sentiment during periods of high policy uncertainty, compared to a 4.5% growth during periods of low uncertainty. This highlights the importance of stable economic policies for maintaining positive market sentiment and economic growth.
News Sources 3
The sentiment analysis for the ticker KO on News Sources 3 reveals no direct mentions or sentiment scores associated with the ticker. The articles reviewed cover a wide range of topics and companies, but none specifically address KO or Coca-Cola. Therefore, the sentiment for KO cannot be determined from the provided data.
Human Analyst Ratings
The analyst recommendations for KO show a consistent and strong positive sentiment. Over the analyzed periods, there is a significant number of ‘buy’ and ‘strong buy’ recommendations, with no ‘sell’ or ‘strong sell’ ratings. This indicates a favorable outlook from analysts, suggesting confidence in the stock’s performance.
Industry Analysis
The U.S. beverages industry demonstrates a robust performance with significant growth in key segments such as carbonated soft drinks and energy drinks. Companies like Keurig Dr Pepper and Monster Beverage Corp have reported strong sales growth in their respective categories, driven by innovation, marketing, and consumer demand for functional and sustainable beverages. However, challenges such as rising commodity prices, regulatory complexities, and supply chain disruptions pose risks to the industry. The sector’s ability to adapt to consumer preferences for health-conscious and eco-friendly products, coupled with technological advancements, positions it well for sustained growth. The industry’s strengths lie in its innovation, market adaptability, and strong consumer base, while challenges include regulatory hurdles and cost pressures.
Economic Report
Real GDP Analysis
The Real GDP data for the USA shows a consistent upward trend over the years, with some fluctuations during periods of economic downturns, such as the 2008 financial crisis and the 2020 pandemic. The recent data indicates a strong recovery and growth, with the GDP reaching new highs in 2024. This suggests a robust economic performance and resilience.
Federal Funds (Interest) Rate Analysis
The Federal Funds Rate has shown significant fluctuations over the analyzed period. Starting from a low of approximately 0.08% in early 2021, the rate increased sharply beginning in 2022, reaching a peak of 5.33% in mid-2023. This increase aligns with monetary tightening policies likely aimed at controlling inflation. The rate has slightly decreased to 4.33% by early 2025, indicating a potential easing of monetary policy. These trends reflect the Federal Reserve’s response to economic conditions, including inflationary pressures and economic growth.
CPI Analysis
The Consumer Price Index (CPI) for all Urban Consumers has shown a consistent upward trend over the years, indicating a steady increase in the general price level of goods and services. The data reveals that the CPI has risen from 241.729 in October 2016 to 317.671 in January 2025. This represents a significant increase, reflecting inflationary pressures over the period. The monthly data also shows some fluctuations, but the overall trend is upward. The recent months show a slight acceleration in the CPI growth, which could be indicative of increasing inflationary trends. This data is crucial for understanding the purchasing power of consumers and the overall economic health.
Unemployment Rate Analysis
The unemployment rate in the USA has shown a general trend of recovery and stabilization over the past years. After peaking at 14.8% in April 2020 due to the economic impact of the COVID-19 pandemic, the rate has steadily decreased, reaching levels around 3.5% to 4.0% in recent months. This indicates a strong recovery in the labor market, with the unemployment rate returning to pre-pandemic levels. The data also shows seasonal and minor fluctuations, which are typical in labor market statistics. Overall, the current unemployment rate reflects a healthy labor market, though continuous monitoring is necessary to ensure sustained economic stability.
Treasury Yield Analysis
The 2-Year Treasury Constant Maturity Rate has shown significant fluctuations over the observed period. Starting from a value of 4.04% in March 2023, the rate experienced a general upward trend, peaking at 5.14% in October 2023. Following this peak, the rate began to decline, reaching 4.26% by February 2025. This pattern suggests a period of tightening monetary policy followed by easing, likely in response to economic conditions. The data reflects the Federal Reserve’s influence on short-term interest rates and the market’s expectations of future economic activity.
Technical Analysis
SMA Analysis
The stock’s 200-day Simple Moving Average (SMA) has been steadily increasing over the past months, indicating a consistent upward trend in the stock’s price. This suggests positive momentum and potential for continued growth, assuming no significant market disruptions. The gradual increase in the SMA reflects sustained investor confidence and a stable upward trajectory.
EMA Analysis
The stock’s 200-day EMA has been steadily increasing over the past months, indicating a consistent upward trend in its long-term price movement. This suggests positive momentum and potential for continued growth, assuming no significant market disruptions. The gradual increase in the EMA values reflects a stable and sustained bullish sentiment.
STOCH Analysis
The Stochastic Oscillator (STOCH) for the stock indicates a recent decline in momentum, with the SlowK dropping from overbought levels above 80 to a more neutral position around 55. This suggests that the stock’s upward momentum has weakened, and it may be entering a consolidation phase or potentially reversing its trend. The SlowD, which is a smoother version of the SlowK, is also declining, reinforcing the observation of reduced bullish momentum. Traders should monitor for further confirmation of trend direction, such as a crossover of the SlowK below the SlowD, which could signal a bearish shift.
RSI Analysis
The RSI for the stock has been consistently above 60 in recent days, indicating strong momentum and a potential overbought condition. This suggests that the stock has been experiencing upward price pressure, but caution is advised as it may be nearing a point of resistance. Monitoring for any signs of RSI divergence or a drop below 60 could provide early indications of a reversal.
