KONEUTRAL

KO Return on Equity (ROE) Analysis

42.1%

Updated 6h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity — at 42.1%, KO is producing $0.421 of profit per $1 of invested equity.

Sector Performance

89th percentile

42.1%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

43.4%(Jul 2026)

↓ Declining

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity — at 42.1%, KO is producing $0.421 of profit per $1 of invested equity.

This is far above the sector median of 13.4%, placing KO in the 89th percentile among its peers, meaning only about 11% of comparable firms achieve a higher ROE. The trend data is limited: year-over-year change is not available, while the quarter-over-quarter change shows a decrease of 3.0% (from 43.4% to 42.1%). Despite the mild quarterly dip, the combination of an exceptionally high ROE and only a slight recent decline points to low fundamental risk from profitability, though it also suggests limited upside from further efficiency gains. This metric supports the overall NEUTRAL verdict: the strong ROE justifies holding the stock, but the flat-to-slightly-down trend offers little reason for added optimism.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about KO?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are KO's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.