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Coca-Cola Co Operating Margin %

: 31.55% (As of Mar. 2021)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Coca-Cola Co's Operating Income for the three months ended in Mar. 2021 was $2,846 Mil. Coca-Cola Co's Revenue for the three months ended in Mar. 2021 was $9,020 Mil. Therefore, Coca-Cola Co's Operating Margin % for the quarter that ended in Mar. 2021 was 31.55%.

Good Sign:

Coca-Cola Co operating margin is expanding. Margin expansion is usually a good sign.

NYSE:KO' s Operating Margin % Range Over the Past 10 Years
Min: 21.11   Med: 23.61   Max: 30.78
Current: 30.78
21.11
30.78

NYSE:KO's Operating Margin % is ranked higher than
95% of the 96 Companies
in the Beverages - Non-Alcoholic industry.

( Industry Median: 7.86 vs. NYSE:KO: 30.78 )

Coca-Cola Co's 5-Year Average Operating Margin % Growth Rate was 5.40% per year.

Coca-Cola Co's Operating Income for the three months ended in Mar. 2021 was $2,846 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2021 was $10,290 Mil.

Coca-Cola Co Operating Margin % Historical Data

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Coca-Cola Co Annual Data
Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Operating Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 23.88 26.65 29.83 28.26 29.76

Coca-Cola Co Quarterly Data
Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21
Operating Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 30.02 27.71 26.56 36.76 31.55
Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.

Coca-Cola Co Operating Margin % Distribution

* The bar in red indicates where Coca-Cola Co's Operating Margin % falls into.


Coca-Cola Co Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Coca-Cola Co's Operating Margin % for the fiscal year that ended in Dec. 2020 is calculated as

Operating Margin %=Operating Income (A: Dec. 2020 ) / Revenue (A: Dec. 2020 )
=9824 / 33014
=29.76 %

Coca-Cola Co's Operating Margin % for the quarter that ended in Mar. 2021 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2021 ) / Revenue (Q: Mar. 2021 )
=2846 / 9020
=31.55 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Coca-Cola Co  (NYSE:KO) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.

Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Coca-Cola Co Operating Margin % Related Terms

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