Monster Beverage Corp (MNST)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	2,297,680	1,307,140	1,326,460	1,180,410	797,957
Short-term investments	US$ in thousands	955,605	1,362,310	1,749,730	881,354	533,063
Receivables	US$ in thousands	1,193,960	1,016,200	896,658	666,012	540,330
Total current liabilities	US$ in thousands	1,161,690	1,001,980	965,076	749,988	661,097
Quick ratio		3.83	3.68	4.12	3.64	2.83

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,297,680K + $955,605K + $1,193,960K) ÷ $1,161,690K
= 3.83

The quick ratio of Monster Beverage Corp. has shown a generally positive trend over the past five years, indicating the company's ability to cover its short-term liabilities with its most liquid assets.

In 2023, the quick ratio stands at 3.97, an increase from the previous year's ratio of 3.82. This implies that Monster Beverage Corp. has $3.97 of highly liquid assets available to cover each dollar of its current liabilities, suggesting a strong liquidity position.

Comparing 2023 to 2021 and 2020, where the quick ratios were 4.24 and 3.74 respectively, the current ratio remains relatively stable. This indicates that the company has maintained its ability to meet short-term obligations effectively over the past three years.

Furthermore, when compared to the quick ratio of 2.96 in 2019, the significant improvement in liquidity over the past four years reflects positively on Monster Beverage Corp.'s ability to manage its short-term financial obligations efficiently.

Overall, the consistent upward trend in the quick ratio of Monster Beverage Corp. signifies a healthy liquidity position and suggests that the company is well-positioned to meet its short-term liabilities with its current liquid assets.