Monster Beverage Corp (MNST)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	2.95	2.79	2.64	1.53	1.61	1.68	1.49	1.58	1.68	1.74	1.67	1.57	1.49	1.54	1.68	1.81	1.92	2.15	2.54	3.20

The inventory turnover ratio for Monster Beverage Corp has experienced fluctuations over the years, ranging from a high of 5.67 in June 30, 2021, to a low of 3.22 in March 31, 2022. The trend indicates that the company has been able to sell its inventory relatively quicker in recent years.

The receivables turnover ratio data is not available, indicating that the company may not report specific figures related to this metric in its financial statements or that the metric is not applicable or relevant for their business model.

Similarly, the payables turnover ratio data is not provided, suggesting a lack of available information to assess how efficiently the company manages its accounts payable.

The working capital turnover ratio for Monster Beverage Corp has shown a declining trend, falling from 3.20 in March 31, 2020, to 2.95 in December 31, 2024. This implies that the company's efficiency in generating revenue relative to its working capital has slightly decreased over the period analyzed.

Average number of days

		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
Days of inventory on hand (DOH)	days	78.12	82.07	89.13	100.38	105.97	98.24	96.56	103.56	108.88	102.76	111.65	113.28	89.02	75.46	64.42	67.96	64.85	65.57	72.00	74.13
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Based on the provided data for Monster Beverage Corp, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The company's DOH has shown fluctuations over the periods but generally remained within a range of approximately 65 to 115 days.
- Decreases in DOH from 2024 to 2023 indicate improved inventory management efficiency.
- An increase in DOH from 2023 to 2024 may suggest challenges in managing inventory levels efficiently, potentially impacting liquidity and working capital.

2. Days of Sales Outstanding (DSO):
- The data does not provide information on DSO, which could be due to the nature of the company's operations or reporting practices.
- DSO is a measure of how quickly a company collects its accounts receivable. Without this data, it is challenging to assess the company's collection efficiency and potential credit risks.

3. Number of Days of Payables:
- Similar to DSO, the provided data does not include information on the number of days of payables.
- This ratio measures how long a company takes to pay its suppliers and impacts cash flow management.
- Without this data, it is difficult to evaluate the company's payment terms, supplier relationships, and working capital efficiency.

In conclusion, the analysis of Monster Beverage Corp's activity ratios reveals insights into inventory management efficiency but lacks essential information on receivables collection and payables management. Complete data on DSO and payables days would provide a more comprehensive view of the company's operational effectiveness and working capital management.

Long-term

	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
Fixed asset turnover	—	—	—	—	—	—	11.60	11.89	12.21	12.82	12.94	14.28	17.66	17.16	16.65	15.31	14.61	14.51	14.26	14.61
Total asset turnover	0.97	0.92	0.92	0.73	0.74	0.74	0.72	0.73	0.76	0.76	0.74	0.71	0.71	0.71	0.73	0.73	0.74	0.78	0.83	0.88

The Fixed Asset Turnover ratio for Monster Beverage Corp has shown a declining trend from March 2020 to June 2023, indicating that the company's ability to generate revenue from its fixed assets decreased over this period. However, there was a slight improvement in the ratio in the most recent data available as of March 2024.

On the other hand, the Total Asset Turnover ratio fluctuated over the same period, with a general downward trend observed until June 2024 when there was a significant increase. This ratio suggests that Monster Beverage Corp became more efficient in generating sales from its total assets towards the end of the period.

Overall, the long-term activity ratios indicate that the company may have experienced challenges in effectively utilizing its fixed assets in generating revenue, but there are positive signs of improved efficiency in utilizing its total assets for revenue generation in the most recent period.