Monster Beverage Corp (MNST)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	1,630,990	1,191,620	1,377,480	1,409,590	1,107,840
Total stockholders’ equity	US$ in thousands	8,228,740	7,025,040	6,566,950	5,160,860	4,171,280
ROE		19.82%	16.96%	20.98%	27.31%	26.56%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,630,990K ÷ $8,228,740K
= 19.82%

The return on equity (ROE) of Monster Beverage Corp. has shown fluctuations over the past five years, with the values ranging from 16.96% to 27.31%. In 2023, the ROE stood at 19.82%, reflecting a moderate increase compared to the previous year. Despite the increase, the ROE in 2023 is lower than the levels seen in 2020 and 2019.

A high ROE indicates that the company is efficiently utilizing shareholders' equity to generate profits. The declining trend in ROE from 2019 to 2023 could suggest that Monster Beverage Corp. may be facing challenges in generating higher returns on equity.

It is important for investors and stakeholders to closely monitor the trend in ROE over time to assess the company's profitability and efficiency in utilizing equity capital. Additional analysis of the company's financial performance and factors affecting its profitability would provide a more comprehensive understanding of the drivers behind the ROE fluctuations.