Monster Beverage Corp (MNST)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 3.32 | 4.81 | 4.76 | 4.85 | 4.19 |
| Quick ratio | 1.40 | 2.80 | 2.66 | 3.19 | 2.75 |
| Cash ratio | 1.40 | 2.80 | 2.66 | 3.19 | 2.75 |
Monster Beverage Corp's liquidity ratios have shown a strong trend over the past five years. The current ratio, which measures the company's ability to cover its short-term obligations with current assets, has consistently been above 4, indicating a healthy liquidity position. In particular, the current ratio improved from 4.19 in 2020 to 4.81 in 2023, though it slightly decreased to 3.32 in 2024.
The quick ratio, also known as the acid-test ratio, provides a more conservative measure of liquidity by excluding inventory from current assets. Monster Beverage Corp's quick ratio has fluctuated over the years, ranging from 1.40 in 2024 to 3.19 in 2021. Despite some fluctuations, the quick ratio has generally remained above 1, suggesting the company has an adequate ability to cover its short-term liabilities with more liquid assets.
The cash ratio, which focuses solely on cash and cash equivalents to cover current liabilities, has followed a similar trend to the quick ratio. It ranged from 1.40 in 2024 to 3.19 in 2021, showing that Monster Beverage Corp has maintained a strong cash position relative to its short-term obligations.
Overall, Monster Beverage Corp's liquidity ratios indicate a consistently strong liquidity position, with the company having ample current assets to meet its short-term financial obligations. However, the slight decrease in ratios in 2024 may warrant further monitoring to ensure continued liquidity strength.
See also:
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 78.12 | 105.97 | 108.88 | 89.02 | 64.85 |
The cash conversion cycle of Monster Beverage Corp has exhibited fluctuations over the past five years. In December 2020, it stood at 64.85 days and increased to 89.02 days by December 2021. The trend continued with a further rise to 108.88 days by December 2022. However, by December 2023, the cycle decreased slightly to 105.97 days before dropping significantly to 78.12 days by December 2024. Overall, the company's cash conversion cycle has shown variability, indicating changes in its efficiency in converting its resources into cash. Further analysis is needed to understand the factors driving these fluctuations.