Monster Beverage Corp (MNST)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	3,443,830	3,425,969	3,417,060	3,416,708	3,345,820	3,282,701	3,200,997	3,195,657	3,136,483	3,065,331	2,896,169	2,645,866	2,432,840	2,280,974	2,169,406	1,978,737	1,874,757	1,775,597	1,726,341	1,734,676
Inventory	US$ in thousands	737,107	770,338	834,404	939,630	971,406	883,582	846,812	906,723	935,631	862,977	885,948	821,132	593,357	471,553	382,890	368,402	333,085	318,956	340,536	352,305
Inventory turnover		4.67	4.45	4.10	3.64	3.44	3.72	3.78	3.52	3.35	3.55	3.27	3.22	4.10	4.84	5.67	5.37	5.63	5.57	5.07	4.92

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,443,830K ÷ $737,107K
= 4.67

Monster Beverage Corp's inventory turnover has fluctuated over the past few years. It started at 4.92 on March 31, 2020, and gradually increased to 5.67 on June 30, 2021. However, it began to decrease after that, reaching a low of 3.22 on March 31, 2022. The inventory turnover then experienced some fluctuations but generally stayed between 3.22 and 4.67 up to December 31, 2024.

Overall, the inventory turnover ratio indicates how efficiently Monster Beverage Corp is managing its inventory to generate sales. A higher ratio generally indicates that the company is selling its inventory quickly, which can be a positive sign of operational efficiency. However, a decreasing trend in the ratio may suggest slower sales or potential issues with inventory management that could lead to excess inventory costs or obsolescence. Monster Beverage Corp may need to monitor its inventory levels and sales patterns closely to optimize its inventory turnover in the future.