Monster Beverage Corp (MNST)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	7,079,110	6,885,120	6,653,460	6,453,790	6,273,070	6,222,880	6,009,150	5,815,830	5,541,150	5,312,660	5,148,460	4,780,410	4,598,650	4,419,580	4,306,790	4,316,940	4,200,906	4,107,925	3,990,525	4,918,245
Property, plant and equipment	US$ in thousands	890,796	731,208	576,645	545,922	516,897	485,550	464,541	407,391	313,753	309,574	309,178	312,155	314,656	304,687	301,946	295,570	298,640	251,760	240,165	241,232
Fixed asset turnover		7.95	9.42	11.54	11.82	12.14	12.82	12.94	14.28	17.66	17.16	16.65	15.31	14.61	14.51	14.26	14.61	14.07	16.32	16.62	20.39

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $7,079,110K ÷ $890,796K
= 7.95

The fixed asset turnover ratio measures how effectively Monster Beverage Corp. is utilizing its fixed assets to generate sales. A higher fixed asset turnover ratio indicates that the company is generating more sales relative to its investment in fixed assets.

Over the past eight quarters, the fixed asset turnover for Monster Beverage Corp. has shown a generally decreasing trend, starting at 14.28 in Q1 2022 and gradually declining to 8.02 in Q4 2023. This suggests that the company may be becoming less efficient in utilizing its fixed assets to generate sales.

During this period, the fixed asset turnover ratio has fluctuated, indicating potential variability in how effectively the company is managing its fixed assets. Despite these fluctuations, the ratio has generally been above 8, indicating that Monster Beverage Corp. is effectively generating revenue from its fixed assets.

Overall, Monster Beverage Corp. should continue to monitor its fixed asset turnover ratio to ensure efficient use of its fixed assets and consider implementing strategies to improve this ratio over time.