Monster Beverage Corp (MNST)

Working capital 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
Revenue (ttm)	US$ in thousands	7,079,110	6,885,120	6,653,460	6,453,790	6,273,070	6,222,880	6,009,150	5,815,830	5,541,150	5,312,660	5,148,460	4,780,410	4,598,650	4,419,580	4,306,790	4,316,940	4,200,906	4,107,925	3,990,525	4,918,245
Total current assets	US$ in thousands	5,589,000	5,311,520	5,654,110	5,294,610	4,764,900	4,696,690	4,696,620	4,743,670	4,682,110	4,383,670	3,950,680	3,433,870	3,140,960	2,825,850	2,371,450	2,048,720	2,316,310	2,360,760	2,326,770	1,907,300
Total current liabilities	US$ in thousands	1,161,690	1,178,800	1,162,580	1,187,510	1,001,980	1,121,720	1,093,610	1,044,360	965,076	932,240	887,527	788,861	749,988	773,763	674,865	701,541	661,097	714,216	705,500	630,972
Working capital turnover		1.60	1.67	1.48	1.57	1.67	1.74	1.67	1.57	1.49	1.54	1.68	1.81	1.92	2.15	2.54	3.20	2.54	2.49	2.46	3.85

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,079,110K ÷ ($5,589,000K – $1,161,690K)
= 1.60

The working capital turnover ratio reflects Monster Beverage Corp.'s efficiency in utilizing its working capital to generate revenue. A higher ratio indicates better utilization of working capital to generate sales.

From the data provided, we observe fluctuations in the working capital turnover ratio over the past eight quarters. The ratio ranged from 1.49 to 1.74, indicating some variability in how efficiently the company is converting its working capital into revenue during different periods.

The trend shows a slight decrease in the ratio from Q4 2022 (1.68) to Q3 2023 (1.68), followed by a subsequent increase in Q4 2023 (1.61). This fluctuation can be indicative of changes in Monster Beverage Corp.'s operations or sales strategies during these periods.

Overall, Monster Beverage Corp. should aim to maintain a consistent or increasing working capital turnover ratio over time to demonstrate efficient management of its working capital in generating revenue. Tracking this ratio will be important for monitoring the company's operational efficiency and financial performance.