Monster Beverage Corp (MNST)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	7,492,710	7,140,030	6,311,050	5,541,350	4,598,640
Total current assets	US$ in thousands	3,641,500	5,589,000	4,764,900	4,682,110	3,140,960
Total current liabilities	US$ in thousands	1,097,520	1,161,690	1,001,980	965,076	749,988
Working capital turnover		2.95	1.61	1.68	1.49	1.92

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,492,710K ÷ ($3,641,500K – $1,097,520K)
= 2.95

Monster Beverage Corp's working capital turnover has shown some fluctuations over the past five years.

In December 2020, the working capital turnover was 1.92, implying that Monster Beverage Corp generated $1.92 in revenue for every dollar of working capital invested. This ratio decreased to 1.49 by December 2021, indicating a less efficient utilization of working capital compared to the previous year.

There was a slight improvement in efficiency in December 2022, with the working capital turnover increasing to 1.68. However, by December 2023, the ratio declined to 1.61, suggesting a decrease in the company's ability to generate revenue from its working capital.

The most significant improvement occurred by December 2024 when the working capital turnover surged to 2.95. This sharp increase indicates that Monster Beverage Corp significantly enhanced its efficiency in utilizing working capital to generate revenue.

Overall, Monster Beverage Corp's working capital turnover has displayed variability, but the notable increase in December 2024 suggests a potential improvement in the company's working capital management and revenue generation efficiency.