Monster Beverage Corp (MNST)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,079,410 | 6,273,310 | 5,542,050 | 4,587,750 | 4,196,920 |
| Receivables | US$ in thousands | 1,193,960 | 1,016,200 | 896,658 | 666,012 | 540,330 |
| Receivables turnover | 5.93 | 6.17 | 6.18 | 6.89 | 7.77 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $7,079,410K ÷ $1,193,960K
= 5.93
The receivables turnover ratio of Monster Beverage Corp. has witnessed a declining trend over the past five years, decreasing from 7.77 in 2019 to 5.98 in 2023. This suggests that the company is taking longer to collect its accounts receivable over time. A lower receivables turnover ratio could indicate potential issues with the company's credit and collection policies, as well as the quality of its customers. It might also suggest a decrease in sales or potential difficulties in collecting payments from customers. Overall, a declining trend in receivables turnover warrants further investigation into the company's credit management practices and the financial health of its customers.
Peer comparison
Dec 31, 2023