Monster Beverage Corp (MNST)

Days of sales outstanding (DSO)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		5.93	5.59	4.99	5.42	6.17	5.92	5.11	5.59	6.18	6.26	5.66	5.96	6.90	5.97	5.66	6.44	7.77	6.34	5.80	8.24
DSO	days	61.56	65.27	73.13	67.32	59.13	61.68	71.41	65.26	59.06	58.34	64.46	61.27	52.86	61.18	64.45	56.70	46.95	57.58	62.95	44.28

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.93
= 61.56

To analyze the Days of Sales Outstanding (DSO) of Monster Beverage Corp., we look at the trend in the DSO over the past eight quarters. DSO represents the average number of days it takes for the company to collect revenue after making a sale.

The trend in Monster Beverage Corp.'s DSO shows fluctuations over the quarters. In Q4 2023, the DSO decreased to 61.04 days from 64.91 days in Q3 2023. This indicates an improvement in the company's accounts receivable collection efficiency. However, compared to Q4 2022, where the DSO was 58.77 days, the current DSO is slightly higher.

Looking further back, in Q2 2023 and Q1 2023, the DSO was 72.72 days and 66.93 days, respectively, which were higher compared to the other quarters. This suggests that Monster Beverage Corp. may have faced challenges in collecting receivables efficiently during those periods.

Overall, the company's DSO has shown some fluctuations, indicating variability in its accounts receivable management. Analyzing DSO trends can help investors and stakeholders assess the effectiveness of the company's credit policies and collection efforts.