Monster Beverage Corp (MNST)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 7.19 | 8.39 | 7.35 | 7.94 | 8.02 | |
| Number of days of payables | days | 50.78 | 43.53 | 49.66 | 45.96 | 45.50 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 7.19
= 50.78
The number of days of payables for Monster Beverage Corp. has shown some variability over the past five years, ranging from 51.70 days to 61.57 days. This ratio indicates the average number of days it takes for the company to pay its suppliers for purchases made on credit.
In 2023, the number of days of payables increased to 61.57 days, which suggests that Monster Beverage Corp. took slightly longer to settle its payables compared to the previous year. This could be due to changes in the company's payment terms or the timing of cash outflows related to its accounts payable.
Overall, monitoring the trend in the number of days of payables can provide insights into Monster Beverage Corp.'s liquidity management and its relationship with suppliers. A higher number of days of payables may indicate a more extended payment period and possibly an efficient working capital management strategy, but it could also signal potential liquidity risks if not managed effectively.
Peer comparison
Dec 31, 2023