Monster Beverage Corp (MNST)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	5,589,000	4,764,900	4,682,110	3,140,960	2,316,310
Total current liabilities	US$ in thousands	1,161,690	1,001,980	965,076	749,988	661,097
Current ratio		4.81	4.76	4.85	4.19	3.50

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $5,589,000K ÷ $1,161,690K
= 4.81

The current ratio of Monster Beverage Corp. has shown a generally increasing trend over the past five years, indicating a strengthening liquidity position. The company's ability to meet its short-term obligations has improved, as seen from the consistently high current ratios ranging from 3.50 in 2019 to 4.81 in 2023. This suggests that the company has more than enough current assets to cover its current liabilities.

For the most recent year, the current ratio of 4.81 indicates that Monster Beverage Corp. had $4.81 in current assets for every $1 in current liabilities, highlighting a robust liquidity position. This high current ratio reflects the company's capacity to easily cover its short-term financial obligations, which can provide stability and flexibility in managing day-to-day operations and potential economic uncertainties.

Overall, the upward trend in the current ratio of Monster Beverage Corp. signifies the company's effective management of current assets and liabilities, fostering a healthy financial position that can support both operational needs and future growth opportunities.