Monster Beverage Corp (MNST)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,056,680 | 3,725,330 | 2,971,580 | 2,357,080 | 2,198,370 |
| Inventory | US$ in thousands | 971,406 | 935,631 | 593,357 | 333,085 | 360,731 |
| Inventory turnover | 4.18 | 3.98 | 5.01 | 7.08 | 6.09 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,056,680K ÷ $971,406K
= 4.18
The inventory turnover ratio of Monster Beverage Corp. has shown a decreasing trend over the past five years, declining from 4.66 in 2019 to 3.44 in 2023. This indicates that the company's efficiency in managing its inventory levels and converting inventory into sales has weakened over time. A lower inventory turnover ratio may suggest excess inventory levels, slow-moving goods, or potential inefficiencies in production and sales processes. It is important for the company to closely monitor and optimize its inventory management practices to improve overall operational efficiency and profitability.
Peer comparison
Dec 31, 2023