Monster Beverage Corp (MNST)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	2,297,680	1,307,140	1,326,460	1,180,410	797,957
Short-term investments	US$ in thousands	955,605	1,362,310	1,749,730	881,354	533,063
Total current liabilities	US$ in thousands	1,161,690	1,001,980	965,076	749,988	661,097
Cash ratio		2.80	2.66	3.19	2.75	2.01

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,297,680K + $955,605K) ÷ $1,161,690K
= 2.80

The cash ratio of Monster Beverage Corp. has shown fluctuations over the past five years. The ratio indicates the company's ability to cover its short-term obligations with its cash and cash equivalents.

The trend in the cash ratio shows an overall improvement from 2019 to 2021, where the ratio increased to 3.31 before declining slightly in 2022 and 2023. This suggests that Monster Beverage Corp. had a higher level of cash relative to its current liabilities in 2021, indicating a stronger liquidity position.

Although the cash ratio decreased in 2022 and 2023, it remained above 2, indicating that Monster Beverage Corp. still had sufficient cash to cover its short-term obligations. However, the decreasing trend in the cash ratio in recent years may suggest a need to closely monitor the company's liquidity position and cash management strategies in the future.

Overall, Monster Beverage Corp.'s cash ratio demonstrates a solid liquidity position, but continuous monitoring and strategic planning are important to maintain financial stability and meet short-term obligations effectively.