Monster Beverage Corp (MNST)

Quick 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	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
Receivables	US$ in thousands	1,193,960	1,231,190	1,333,000	1,190,350	1,016,200	1,051,640	1,175,590	1,039,780	896,658	849,157	909,169	802,509	666,012	740,813	760,433	670,570	540,330	647,983	688,197	596,661
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
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

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 fluctuated over the past eight quarters, ranging from a low of 3.42 in Q3 2022 to a high of 4.14 in Q2 2023. This ratio measures the company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory.

A quick ratio above 1 indicates that Monster Beverage Corp. has an adequate level of liquid assets to cover its current liabilities. The company has consistently maintained a healthy quick ratio above 3 across the time period analyzed. This suggests that Monster Beverage Corp. is well-positioned to meet its short-term obligations without relying heavily on selling inventory.

Overall, the trend in the quick ratio indicates a strong financial position for Monster Beverage Corp., with sufficient liquidity to weather short-term financial obligations. However, it is important to continue monitoring this ratio to ensure the company's financial health and ability to meet its short-term obligations effectively.