Monster Beverage Corp (MNST)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	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	797,957	717,617	888,247	618,344
Short-term investments	US$ in thousands	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	533,063	587,356	357,988	263,697
Total current liabilities	US$ in thousands	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	661,097	714,216	705,500	630,972
Cash ratio		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	2.01	1.83	1.77	1.40

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 for Monster Beverage Corp. has shown some variation over the past eight quarters, ranging from a low of 2.41 in Q2 2022 to a high of 2.99 in Q2 2023. This ratio measures the company's ability to cover its short-term liabilities with its readily available cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover these obligations, while a lower ratio may signal potential liquidity constraints.

The trend in Monster Beverage Corp.'s cash ratio over the period suggests that the company has generally maintained a healthy level of liquidity, with the ratio consistently above 2. This indicates that the company has a significant amount of cash and cash equivalents relative to its current liabilities, providing a cushion to meet its short-term financial obligations.

Overall, the cash ratio analysis indicates that Monster Beverage Corp. has been effectively managing its liquidity position, which is crucial for ensuring financial stability and flexibility in operating activities. It is important for investors and stakeholders to monitor this ratio in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial health.