Monster Beverage Corp (MNST)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	1,533,290	2,297,680	1,307,140	1,326,460	1,180,410
Short-term investments	US$ in thousands	0	955,605	1,362,310	1,749,730	881,354
Total current liabilities	US$ in thousands	1,097,520	1,161,690	1,001,980	965,076	749,988
Cash ratio		1.40	2.80	2.66	3.19	2.75

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,533,290K + $0K) ÷ $1,097,520K
= 1.40

The cash ratio for Monster Beverage Corp has shown some fluctuations over the past five years. It increased from 2.75 in December 2020 to 3.19 in December 2021, indicating an improvement in the company's ability to cover its short-term liabilities with cash on hand. However, the ratio decreased slightly to 2.66 in December 2022 before increasing again to 2.80 in December 2023.

The most significant change occurred in December 2024, where the cash ratio dropped to 1.40. This substantial decline may raise concerns about the company's liquidity position and its ability to meet its short-term obligations solely with cash reserves.

Overall, while the cash ratio of Monster Beverage Corp has generally remained above 1, suggesting that the company has enough cash to cover its current liabilities, the decreasing trend in recent years, particularly the sharp drop in 2024, highlights the importance of monitoring the company's liquidity closely.