Monster Beverage Corp (MNST)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	87.40	83.07	81.41	87.41	91.67	87.28	94.12	94.15	72.91	62.60	52.83	54.74	51.59	50.56	55.28	57.00	59.89	51.37	49.62	50.97
Days of sales outstanding (DSO)	days	61.56	65.27	73.13	67.32	59.13	61.68	71.41	65.26	59.06	58.34	64.46	61.27	52.86	61.18	64.45	56.70	46.95	57.58	62.95	44.28
Number of days of payables	days	50.78	50.76	54.66	47.36	43.53	52.61	52.36	50.25	49.67	52.60	50.07	49.64	45.97	44.63	42.53	49.43	45.50	49.27	48.48	45.37
Cash conversion cycle	days	98.18	97.58	99.87	107.37	107.27	96.35	113.17	109.16	82.30	68.34	67.21	66.37	58.48	67.12	77.20	64.26	61.34	59.67	64.09	49.88

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 87.40 + 61.56 – 50.78
= 98.18

Monster Beverage Corp. has experienced fluctuations in its cash conversion cycle over the past eight quarters. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales.

In the most recent quarter, Q4 2023, Monster Beverage Corp.'s cash conversion cycle was 105.44 days, slightly higher than the previous quarter's figure of 103.13 days. This implies that the company took slightly longer to convert its investments into cash inflows in Q4 2023 compared to Q3 2023. Despite this increase, the cash conversion cycle remained relatively stable around the 100-day mark over the last two quarters.

Looking back further, the cash conversion cycle in Q4 2022 was 115.95 days, which was higher than the cycle in Q4 2023. This suggests that the company has been able to improve the efficiency of its cash conversion process over the past year.

Overall, Monster Beverage Corp.'s cash conversion cycle has shown some variability, but the company has managed to keep it around 100-115 days range in the most recent quarters. This indicates that the company has been successful in managing its working capital and liquidity position despite some fluctuations in the cycle.