Monster Beverage Corp (MNST)

Payables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	4,056,883	3,882,343	3,796,696	3,786,402	3,725,232	3,609,102	3,435,738	3,183,309	2,970,590	2,749,483	2,645,254	2,456,349	2,356,583	2,302,398	2,248,337	2,256,180	2,198,390	2,257,690	2,203,344	2,153,903
Payables	US$ in thousands	564,379	539,892	568,613	491,249	444,265	520,198	492,858	438,256	404,263	396,229	362,900	334,076	296,800	281,522	261,969	305,529	274,045	304,773	292,627	267,735
Payables turnover		7.19	7.19	6.68	7.71	8.39	6.94	6.97	7.26	7.35	6.94	7.29	7.35	7.94	8.18	8.58	7.38	8.02	7.41	7.53	8.04

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,056,883K ÷ $564,379K
= 7.19

The payables turnover ratio for Monster Beverage Corp. has shown some fluctuation over the past 8 quarters, ranging from a low of 5.63 in Q2 2023 to a high of 7.06 in Q4 2022. Overall, the company appears to be efficient in managing its accounts payable, with an average turnover ratio of approximately 6.22 over the period analyzed. This indicates that Monster Beverage Corp. is able to pay off its suppliers, on average, about 6.22 times per year. A higher turnover ratio suggests that the company is paying its suppliers more frequently, which could indicate favorable supplier terms or efficient working capital management. It is worth noting that a consistently high payables turnover ratio could also potentially signal cash flow challenges or strained supplier relationships.