Monster Beverage Corp (MNST)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	4.67	3.44	3.35	4.10	5.63
Receivables turnover	—	—	—	—	—
Payables turnover	—	—	—	—	—
Working capital turnover	2.95	1.61	1.68	1.49	1.92

Monster Beverage Corp's inventory turnover has decreased over the years from 5.63 in December 2020 to 4.67 in December 2024. This indicates that the company is selling its inventory at a slower rate. A lower inventory turnover may suggest potential issues with sales or overstocking.

The receivables turnover ratio is not provided for any year, indicating that the company's accounts receivable turnover is not available for analysis. Without this information, it is challenging to assess how effectively the company is collecting on its credit sales.

Similarly, payables turnover data is not available, which means we cannot evaluate how quickly the company is paying its suppliers.

Monster Beverage Corp's working capital turnover has fluctuated over the years, with a significant increase in 2024 to 2.95 from 1.92 in 2020. A higher working capital turnover ratio indicates that the company is generating more revenue for each dollar of working capital invested. This improvement is generally positive as it shows the company's ability to efficiently utilize its operational assets to generate sales.

Overall, the data suggests that Monster Beverage Corp may need to focus on improving its inventory turnover and provide more transparency around receivables and payables turnover to gain a more comprehensive understanding of its operational efficiency.

Average number of days

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	78.12	105.97	108.88	89.02	64.85
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—

Based on the provided data, Monster Beverage Corp's Days of Inventory on Hand (DOH) has shown an increasing trend from 64.85 days as of December 31, 2020, to 108.88 days as of December 31, 2022, before decreasing to 78.12 days as of December 31, 2024. This indicates that the company has been holding inventory for a longer period of time in recent years, possibly leading to higher carrying costs and potentially tying up cash flows.

Regarding the Days of Sales Outstanding (DSO) and the Number of Days of Payables, the data indicates that there is no information available for these ratios for the years under consideration (2020 to 2024). Without this information, it is challenging to assess the efficiency of Monster Beverage Corp in collecting receivables and managing payables during these periods.

Overall, the increase in the Days of Inventory on Hand suggests that Monster Beverage Corp may need to optimize its inventory management processes to improve efficiency and reduce associated costs. Monitoring the DSO and payables turnover ratios in the future could provide further insights into the company's working capital management and operational efficiency.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	—	—	12.21	17.66	14.61
Total asset turnover	0.97	0.74	0.76	0.71	0.74

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. Looking at the trend for Monster Beverage Corp over the past few years:

1. Fixed Asset Turnover:
- In 2020, the fixed asset turnover ratio was 14.61, indicating that Monster Beverage Corp generated $14.61 in sales for every $1 of fixed assets invested.
- The ratio improved significantly in 2021 to 17.66, suggesting better utilization of fixed assets to generate sales.
- However, there was a decline in 2022, with the ratio falling to 12.21. This might indicate a decrease in the company's efficiency in utilizing its fixed assets for revenue generation.
- There is no data available for 2023 and 2024, which limits our ability to assess the company's recent performance in this aspect.

2. Total Asset Turnover:
- The total asset turnover ratio measures how effectively a company is using all its assets to generate revenue.
- Monster Beverage Corp's total asset turnover was 0.74 in both 2020 and 2023, suggesting that the company generated $0.74 in sales for every $1 of total assets.
- In 2021, the ratio decreased slightly to 0.71, indicating a small decline in the efficiency of asset utilization.
- However, there was an improvement in 2022, with the ratio increasing to 0.76, showing a better utilization of total assets to generate revenue.
- Notably, in 2024, the total asset turnover ratio increased significantly to 0.97, which may indicate a higher efficiency in utilizing assets to drive sales.

In conclusion, Monster Beverage Corp's fixed asset turnover has shown fluctuations, with improvements in some years and declines in others. The total asset turnover has also varied over the years, with some years showing better asset utilization for revenue generation. It would be important to monitor future financial statements to assess the company's long-term efficiency in utilizing its assets effectively.