Monster Beverage Corp (MNST)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,945,548 | 2,015,259 | 2,045,870 | 2,041,844 | 1,982,757 | 1,910,094 | 1,799,931 | 1,632,171 | 1,534,156 | 1,559,641 | 1,591,341 | 1,749,239 | 1,765,696 | 1,748,986 | 1,775,523 | 1,669,512 | 1,633,154 | 1,547,898 | 1,484,740 | 1,456,466 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,957,720 | 5,779,400 | 5,866,320 | 8,577,790 | 8,228,740 | 7,873,150 | 7,841,460 | 7,395,360 | 7,025,040 | 6,815,760 | 6,809,180 | 6,866,670 | 6,566,950 | 6,245,000 | 5,905,500 | 5,459,440 | 5,160,860 | 4,629,320 | 4,221,540 | 3,870,950 |
| Return on total capital | 32.66% | 34.87% | 34.87% | 23.80% | 24.10% | 24.26% | 22.95% | 22.07% | 21.84% | 22.88% | 23.37% | 25.47% | 26.89% | 28.01% | 30.07% | 30.58% | 31.64% | 33.44% | 35.17% | 37.63% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,945,548K ÷ ($—K + $5,957,720K)
= 32.66%
Monster Beverage Corp's return on total capital has exhibited a declining trend over the past few years, indicating a decrease in the company's efficiency in generating profits from its total capital employed. The ratio stood at 37.63% as of March 31, 2020, and gradually decreased to 32.66% by December 31, 2024. Notably, there was a significant drop in the return on total capital from June 30, 2022, to September 30, 2022, suggesting potential challenges faced by the company during that period.
Although the return on total capital improved slightly in the later quarters of 2023 and the first half of 2024, it has not reached the levels seen in the earlier periods. The latest data as of December 31, 2024, shows a return on total capital of 32.66%, indicating a modest recovery from the lowest point observed in March 31, 2024.
Overall, Monster Beverage Corp's return on total capital has fluctuated over the years, signaling variations in the company's profitability relative to the total capital invested. Further analysis of the factors contributing to these fluctuations may be necessary to assess the long-term sustainability and effectiveness of the company's capital allocation strategies.
Peer comparison
Dec 31, 2024