Monster Beverage Corp (MNST)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,443,830 | 3,345,820 | 3,136,480 | 2,432,840 | 1,874,760 |
| Inventory | US$ in thousands | 737,107 | 971,406 | 935,631 | 593,357 | 333,085 |
| Inventory turnover | 4.67 | 3.44 | 3.35 | 4.10 | 5.63 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,443,830K ÷ $737,107K
= 4.67
Monster Beverage Corp's inventory turnover has shown a declining trend over the years, from 5.63 in December 2020 to 4.10 in December 2021, and further dropping to 3.35 in December 2022. However, there was a slight increase to 3.44 in December 2023 and a significant improvement to 4.67 in December 2024.
A declining inventory turnover may indicate inefficiencies in managing inventory or potential issues with sales and demand forecasting. Companies strive for a balance in inventory turnover to avoid stockouts or excess inventory, which can tie up cash and lead to increased carrying costs.
The sudden improvement in inventory turnover in December 2024 could be a positive sign, as it suggests Monster Beverage Corp is managing its inventory more efficiently, potentially through better demand forecasting or inventory management practices.
Overall, monitoring inventory turnover can provide insights into a company's operational efficiency and its ability to effectively manage its inventory levels.
Peer comparison
Dec 31, 2024