Monster Beverage Corp (MNST)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	1,509,050	1,630,990	1,191,620	1,377,480	1,409,590
Total stockholders’ equity	US$ in thousands	5,957,720	8,228,740	7,025,040	6,566,950	5,160,860
ROE		25.33%	19.82%	16.96%	20.98%	27.31%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,509,050K ÷ $5,957,720K
= 25.33%

Based on the provided data, Monster Beverage Corp's return on equity (ROE) has shown some fluctuations over the past five years.

As of December 31, 2020, the ROE stood at 27.31%, indicating that for every dollar of shareholders' equity invested, the company generated a return of 27.31%. This high ROE suggests that Monster Beverage Corp efficiently utilized its equity to generate profits for its shareholders.

However, by December 31, 2021, the ROE had decreased to 20.98%, indicating a decline in profitability relative to the previous year. This decrease could be due to various factors such as changes in expenses, competition, or market conditions.

The trend continued in 2022 with an ROE of 16.96%, reflecting a further decline in the company's profitability compared to the previous two years. This decreased ROE may raise concerns about the company's ability to generate returns for its shareholders.

By December 31, 2023, there was a slight improvement in ROE, which rose to 19.82%. While this indicates a recovery from the previous year, the ROE still remained below the levels seen in 2020.

Finally, as of December 31, 2024, Monster Beverage Corp's ROE increased to 25.33%, showing a significant improvement from the previous year and getting closer to the levels seen in 2020. This uptick could be a positive sign for investors, indicating that the company may be regaining its profitability momentum.

Overall, the fluctuations in Monster Beverage Corp's ROE over the five-year period suggest varying levels of profitability and efficiency in utilizing shareholders' equity. Investors and stakeholders may want to monitor these trends closely to assess the company's financial performance and its ability to generate returns in the future.