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A fundamental Analysis of Coca-Cola’s Debt And Risk

There are many metrics involved in understanding the debt of a company, but for this article, I will look at Coca-Cola Corporation’s (KO) total debt, total liabilities, debt ratios and WACC.

1. Total Debt = Long-Term Debt + Short-Term Debt

Debt is an amount of money borrowed by one party from another, and must be paid back. Total debt is the sum of long-term debt, which is debt that is due in one year or more, and short-term debt, which is any debt that is due within one year.

  • 2007 – $3.277 billion + $6.052 billion = $9.329 billion
  • 2008 – $2.781 billion + $6.531 million = $9.312 billion
  • 2009 – $5.059 billion + $6.800 billion = $11.859 billion
  • 2010 – $14.041 billion + $9.376 billion = $23.417 billion
  • 2011 – $13.656 billion + $14.912 billion = $28.568 billion

Coca-Cola’s total debt has increased significantly since 2007. In 2007, the company reported a total debt of $9.329 billion. In 2011, the company’s total debt increased to 28.568 billion. Over the past 5 years, Coca-Cola’s total debt has increased by 306.22%.

To read more: Analyzing Coca-Cola’s Debt And Risk

For other articles on Coke please read: KO – Coca-Cola Company – Stock Price Target 2012

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