Monster Beverage Corp (MNST)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 4.81 | 4.51 | 4.86 | 4.46 | 4.76 | 4.19 | 4.29 | 4.54 | 4.85 | 4.70 | 4.45 | 4.35 | 4.19 | 3.65 | 3.51 | 2.92 | 3.50 | 3.31 | 3.30 | 3.02 |
| Quick ratio | 3.83 | 3.60 | 3.97 | 3.58 | 3.68 | 3.30 | 3.33 | 3.61 | 4.12 | 4.06 | 3.90 | 3.75 | 3.64 | 3.12 | 2.86 | 2.29 | 2.83 | 2.73 | 2.74 | 2.34 |
| 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 |
Monster Beverage Corp. has shown consistent strength in its liquidity position, as evidenced by its current ratio averaging around 4.6 over the past eight quarters. This indicates that the company has more than enough current assets to cover its current liabilities, providing a comfortable cushion for short-term obligations.
The quick ratio, which excludes inventory from current assets, has also been robust, averaging around 3.8. This suggests that Monster Beverage Corp. can meet its short-term liabilities even without relying on selling inventory.
The cash ratio, averaging around 2.7, indicates the company's ability to cover its current liabilities using its most liquid assets, cash and cash equivalents. Although slightly lower than the current and quick ratios, the cash ratio still reflects a strong ability to meet short-term obligations without relying on other current assets.
Overall, Monster Beverage Corp. has maintained a solid liquidity position across the quarters analyzed, suggesting a strong ability to cover its short-term liabilities and generate operating cash flows.
See also:
Additional liquidity measure
| 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 conversion cycle | days | 98.18 | 97.58 | 99.87 | 107.37 | 107.27 | 96.35 | 113.17 | 109.16 | 82.30 | 68.34 | 67.21 | 66.37 | 58.48 | 67.12 | 77.20 | 64.26 | 61.34 | 59.67 | 64.09 | 49.88 |
The cash conversion cycle for Monster Beverage Corp. over the past eight quarters has shown some fluctuations. In Q1 of 2022, the company had a cash conversion cycle of 118.07 days, which decreased to 102.50 days in Q3 of 2022 before increasing again in the following quarter. Throughout 2023, there were further fluctuations in the cash conversion cycle with values ranging from 103.13 days to 114.39 days.
Overall, the company's cash conversion cycle seems to be relatively stable, with fluctuations within a reasonable range. However, it is important for the company to monitor and manage its cash conversion cycle effectively to ensure efficient management of working capital and liquidity. By analyzing trends in the cash conversion cycle over time, Monster Beverage Corp. can identify areas for potential improvement in its cash management processes.