Monster Beverage Corp (MNST)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,930,290 | 1,953,360 | 1,584,720 | 1,797,470 | 1,633,150 |
| Total assets | US$ in thousands | 7,719,090 | 9,686,520 | 8,293,100 | 7,804,780 | 6,202,720 |
| Operating ROA | 25.01% | 20.17% | 19.11% | 23.03% | 26.33% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,930,290K ÷ $7,719,090K
= 25.01%
Monster Beverage Corp's operating return on assets (ROA) has shown a fluctuating trend over the years.
- In 2020, the operating ROA stood at 26.33%, indicating the company generated $0.2633 in operating income for every $1 of assets.
- Subsequently, in 2021, the operating ROA decreased to 23.03%, suggesting a slight decrease in operating efficiency and profitability.
- By 2022, the operating ROA further declined to 19.11%, signaling potential challenges in generating operating income relative to its asset base.
- However, in 2023, there was a slight improvement as the operating ROA increased to 20.17%, indicating some recovery in operating performance.
- Finally, by the end of 2024, Monster Beverage Corp's operating ROA rose to 25.01%, reflecting an increase in operational efficiency and profitability.
Overall, the fluctuating trend in operating ROA indicates varying levels of efficiency in utilizing assets to generate operating income over the years. It is essential for the company to monitor and analyze these fluctuations to make informed decisions and drive sustainable growth in the future.
Peer comparison
Dec 31, 2024