Monster Beverage Corp (MNST)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 54.04% | 53.14% | 50.30% | 56.10% | 59.23% |
| Operating profit margin | 25.76% | 27.36% | 25.11% | 32.44% | 35.51% |
| Pretax margin | 26.55% | 28.97% | 24.91% | 32.51% | 35.36% |
| Net profit margin | 20.14% | 22.84% | 18.88% | 24.86% | 30.65% |
Monster Beverage Corp's profitability ratios have shown some fluctuations over the past five years.
1. Gross Profit Margin: The company's gross profit margin has decreased from 59.23% in 2020 to 54.04% in 2024. This indicates a decrease in the percentage of revenue retained after accounting for the cost of goods sold.
2. Operating Profit Margin: Monster Beverage Corp's operating profit margin also decreased over the period from 35.51% in 2020 to 25.76% in 2024. This suggests that the company's operating expenses relative to its revenue have increased.
3. Pre-tax Margin: The pre-tax margin experienced fluctuations, with a notable decrease from 32.51% in 2021 to 24.91% in 2022, before slightly recovering to 26.55% in 2024. This indicates changes in the company's profitability before accounting for taxes.
4. Net Profit Margin: The net profit margin decreased from 30.65% in 2020 to 20.14% in 2024. This decline suggests that Monster Beverage Corp's overall profitability, after all expenses including taxes, has reduced over the five-year period.
Overall, the trends in the profitability ratios of Monster Beverage Corp indicate a mixed performance, with some margins showing declines while others displaying fluctuations. Further analysis of the company's financial performance and strategic decisions may be necessary to understand the factors driving these changes in profitability ratios.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 25.01% | 20.17% | 19.11% | 23.03% | 26.33% |
| Return on assets (ROA) | 19.55% | 16.84% | 14.37% | 17.65% | 22.73% |
| Return on total capital | 32.40% | 22.90% | 22.56% | 27.37% | 31.64% |
| Return on equity (ROE) | 25.33% | 19.82% | 16.96% | 20.98% | 27.31% |
Monster Beverage Corp's profitability ratios show a mixed performance over the five-year period from 2020 to 2024.
1. Operating Return on Assets (Operating ROA) decreased from 26.33% in 2020 to 19.11% in 2022 but slightly improved to 20.17% in 2023 and further increased to 25.01% in 2024. This ratio measures the company's operating income generated per dollar of assets, indicating a strong operational efficiency and profitability trend in recent years.
2. Return on Assets (ROA) also declined from 22.73% in 2020 to 14.37% in 2022 before recovering to 19.55% in 2024. ROA reflects how efficiently the company is utilizing its assets to generate profit, and the fluctuations in this ratio suggest some challenges in asset management during the period.
3. Return on Total Capital reached a peak of 32.40% in 2024, showing an increasing trend from 2020 to 2024. This ratio evaluates the company's ability to generate a return for all providers of capital and indicates a strong overall profitability performance and effective capital utilization in recent years.
4. Return on Equity (ROE) decreased from 27.31% in 2020 to 16.96% in 2022 but then improved to 25.33% in 2024. ROE reflects the return earned on shareholder equity, and the fluctuations in this ratio indicate variability in the company's ability to generate profit from shareholder investments during the period.
Overall, Monster Beverage Corp's profitability ratios demonstrate a fluctuating trend with some years showing declines and others showing improvements. The company has managed to maintain a strong operational efficiency and profitability despite facing challenges in asset management and shareholder return in certain years.