Monster Beverage Corp (MNST)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 53.60% | 50.60% | 56.09% | 59.37% | 60.01% |
| Operating profit margin | 27.59% | 25.26% | 32.43% | 35.60% | 33.43% |
| Pretax margin | 29.22% | 25.06% | 32.50% | 35.45% | 33.74% |
| Net profit margin | 23.04% | 19.00% | 24.86% | 30.73% | 26.40% |
The profitability ratios of Monster Beverage Corp. have displayed some fluctuations over the past five years. The gross profit margin, which indicates the percentage of revenue remaining after deducting the cost of goods sold, ranged between 50.30% and 59.95%. There was a notable decrease in 2022, but the margin improved in 2023 to 53.14%.
The operating profit margin, measuring the proportion of revenue that represents operating income, was between 25.11% and 35.51%. It experienced a decline in 2023 to 27.36% from 32.44% in 2021. This suggests the company's operating efficiency weakened in 2023.
The pretax margin, indicating the percentage of each dollar of revenue that translates into pre-tax profit, fluctuated between 24.91% and 35.51%. The margin increased to 28.97% in 2023, after a dip in 2022.
The net profit margin, which reflects the percentage of revenue that translates into net income, ranged from 18.88% to 30.65%. The margin increased in 2023 to 22.84%, compared to 24.86% in 2021.
Overall, while there were fluctuations in the profitability ratios of Monster Beverage Corp., the company managed to improve its profitability in 2023 compared to 2022, particularly in terms of net profit margin. However, it will be important to monitor the trend in operating profit margin to ensure sustained profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 20.17% | 19.11% | 23.03% | 26.33% | 27.24% |
| Return on assets (ROA) | 16.84% | 14.37% | 17.65% | 22.73% | 21.51% |
| Return on total capital | 23.74% | 22.56% | 27.37% | 31.64% | 33.63% |
| Return on equity (ROE) | 19.82% | 16.96% | 20.98% | 27.31% | 26.56% |
Monster Beverage Corp.'s profitability ratios have shown fluctuations over the past five years. The Operating return on assets (Operating ROA) has ranged from 19.11% to 27.24%, with a slight increase in 2023 compared to 2022. This ratio indicates that the company is generating profits from its assets before interest and taxes at a solid rate.
The Return on assets (ROA) has also varied over the years, ranging from 14.37% to 22.73%. This ratio reflects the company's overall ability to generate profits from its total assets, and the decrease in 2023 compared to the previous year suggests some challenges in asset utilization.
The Return on total capital has shown a similar trend, fluctuating between 22.56% and 33.63%. This ratio highlights the company's efficiency in generating profits from both equity and debt sources of capital. The decline in 2023 compared to the previous year indicates a potential inefficiency in capital utilization.
Lastly, the Return on equity (ROE) has varied from 16.96% to 27.31% over the past five years. This ratio measures the company's ability to generate profits from shareholders' equity. The decrease in 2023 compared to 2022 suggests a lower profitability generated from shareholders' investments.
Overall, while Monster Beverage Corp. has maintained healthy profitability ratios, the fluctuations in these measures indicate the need for the company to carefully manage its assets, capital, and equity to sustain its profitability in the long term.