Monster Beverage Corp (MNST)

Cash conversion cycle

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	78.12	105.97	108.88	89.02	64.85
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—
Cash conversion cycle	days	78.12	105.97	108.88	89.02	64.85

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 78.12 + — – —
= 78.12

Based on the provided data, the cash conversion cycle of Monster Beverage Corp has shown fluctuating trends over the past five years. As of December 31, 2020, the company's cash conversion cycle was 64.85 days, indicating that it took approximately 64.85 days for the company to convert its investments in inventory and receivables into cash.

Over the subsequent years, there was an increase in the cash conversion cycle, reaching 89.02 days by December 31, 2021, and further increasing to 108.88 days by December 31, 2022. This trend suggests that Monster Beverage Corp may have been taking longer to convert its inventory and receivables into cash during these periods.

However, there was a slight improvement by December 31, 2023, as the cash conversion cycle decreased to 105.97 days. By the end of the most recent year, December 31, 2024, the cash conversion cycle was recorded at 78.12 days, indicating a shorter period compared to the previous year.

Overall, fluctuations in the cash conversion cycle suggest variations in the company's efficiency in managing its working capital components. An increasing cash conversion cycle may indicate potential liquidity challenges or inefficiencies in inventory management and collection of receivables, while a decreasing cycle may reflect improvements in these areas. Further analysis of the company's operating and financial performance would provide additional insights into the factors driving these changes in the cash conversion cycle.