Monster Beverage Corp (MNST)
Payables 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 |
| Payables | US$ in thousands | 564,379 | 444,265 | 404,263 | 296,800 | 274,045 |
| Payables turnover | 7.19 | 8.39 | 7.35 | 7.94 | 8.02 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,056,680K ÷ $564,379K
= 7.19
Monster Beverage Corp.'s payables turnover ratio has fluctuated over the past five years. The ratio decreased from 6.14 in 2019 to 6.02 in 2021, then increased to 7.06 in 2022, and further decreased to 5.93 in 2023. This ratio indicates how many times the company pays its suppliers within a given period. A higher payables turnover ratio suggests that the company is efficiently managing its accounts payable by paying off its suppliers more frequently. Conversely, a lower ratio may indicate that the company is taking longer to pay its suppliers, which could impact supplier relationships or suggest potential liquidity issues. Overall, the trend in Monster Beverage Corp.'s payables turnover ratio over the years may reflect changes in the company's payment practices and supplier relationships.
Peer comparison
Dec 31, 2023