Monster Beverage Corp (MNST)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,953,360 | 1,584,720 | 1,797,470 | 1,633,150 | 1,402,940 |
| Total assets | US$ in thousands | 9,686,520 | 8,293,100 | 7,804,780 | 6,202,720 | 5,150,350 |
| Operating ROA | 20.17% | 19.11% | 23.03% | 26.33% | 27.24% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,953,360K ÷ $9,686,520K
= 20.17%
Monster Beverage Corp.'s operating return on assets (operating ROA) has exhibited a downward trend over the past five years, declining from 27.24% in 2019 to 20.17% in 2023. This suggests that the company's ability to generate operating income from its assets has weakened over time. The decreasing trend could be a cause for concern as it indicates a potential decrease in operational efficiency and/or profitability relative to the size of the company's asset base. Further analysis, including a comparison to industry peers and an assessment of the underlying factors driving this trend, would be necessary to determine the root causes and implications of this decline in operating ROA for Monster Beverage Corp.
Peer comparison
Dec 31, 2023