Monster Beverage Corp (MNST)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash and cash equivalents	US$ in thousands	1,533,290	1,625,340	1,564,730	2,576,520	2,297,680	1,773,850	1,869,770	1,672,660	1,307,140	1,303,050	1,132,040	1,014,790	1,326,460	1,712,670	1,584,240	1,178,880	1,180,410	1,074,730	921,326	701,836
Short-term investments	US$ in thousands	0	0	0	984,201	955,605	1,236,750	1,417,240	1,383,030	1,362,310	1,346,780	1,337,790	1,717,650	1,749,730	1,224,070	968,952	980,108	881,354	599,326	250,753	233,513
Total current liabilities	US$ in thousands	1,097,520	1,245,140	1,160,520	1,228,830	1,161,690	1,178,800	1,162,580	1,187,510	1,001,980	1,121,720	1,093,610	1,044,360	965,076	932,240	887,527	788,861	749,988	773,763	674,865	701,541
Cash ratio		1.40	1.31	1.35	2.90	2.80	2.55	2.83	2.57	2.66	2.36	2.26	2.62	3.19	3.15	2.88	2.74	2.75	2.16	1.74	1.33

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 of Monster Beverage Corp has shown fluctuations over the past few years, indicating the company's ability to cover its short-term liabilities with its cash and cash equivalents.

The cash ratio started at 1.33 on March 31, 2020, and gradually increased to 3.19 by December 31, 2021, reflecting a strong liquidity position. However, in the following periods, the ratio fluctuated between 2.26 and 3.15, suggesting some variability in the company's ability to meet its short-term obligations solely with its available cash.

Notably, there was a significant drop in the cash ratio to 1.35 on June 30, 2024, followed by a slight recovery to 1.40 by December 31, 2024. This decline may raise concerns about the company's liquidity position and its ability to cover immediate liabilities with cash on hand.

Overall, while Monster Beverage Corp has generally maintained a healthy cash ratio above 1, which indicates a positive ability to meet short-term liabilities, the recent decrease in the ratio warrants closer monitoring to ensure adequate liquidity management in the future.