Monster Beverage Corp (MNST)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	1,533,290	2,297,680	1,307,140	1,326,460	1,180,410
Short-term investments	US$ in thousands	0	955,605	1,362,310	1,749,730	881,354
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	1,097,520	1,161,690	1,001,980	965,076	749,988
Quick ratio		1.40	2.80	2.66	3.19	2.75

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,533,290K + $0K + $—K) ÷ $1,097,520K
= 1.40

The quick ratio of Monster Beverage Corp has shown fluctuation over the past five years. Starting at 2.75 in December 31, 2020, it increased to 3.19 by December 31, 2021, indicating a strong ability to cover its short-term obligations with its most liquid assets. However, by December 31, 2022, the quick ratio decreased to 2.66, although it still remained above 1, reassuring sufficient liquidity. This trend continued into 2023 where the quick ratio rose to 2.80, showing an improved ability to meet short-term liabilities. However, by December 31, 2024, the quick ratio dropped significantly to 1.40, signaling a potentially reduced ability to cover immediate obligations with liquid assets compared to previous years. It would be prudent for stakeholders to monitor liquidity levels to ensure the company can effectively meet its short-term financial commitments.