Monster Beverage Corp (MNST)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.30 | 1.18 | 1.18 | 1.19 | 1.20 |
Based on the provided data for Monster Beverage Corp, the solvency ratios indicate a strong financial position with consistently low levels of debt relative to assets, capital, and equity over the years.
- The Debt-to-assets ratio remained at 0.00 for all the years, indicating that the company has no significant debt in relation to its total assets. This signifies a low financial risk and indicates that the company's assets are primarily funded by equity.
- The Debt-to-capital ratio also stood at 0.00 for all the years, demonstrating that the company's capital structure is not heavily reliant on debt financing. This suggests a healthy balance between debt and equity in funding the company's operations.
- The Debt-to-equity ratio stayed at 0.00 for all the years, reflecting that Monster Beverage Corp's capital is predominantly funded by equity rather than debt. This shows a conservative approach to leverage and a strong financial position.
- The Financial leverage ratio decreased slightly from 1.20 in 2020 to 1.18 in 2023 before increasing to 1.30 in 2024. Despite the slight change, the ratio remains relatively stable, indicating a modest level of financial leverage and suggesting that the company's assets are effectively utilized to generate returns for shareholders.
Overall, the consistent low debt levels and stable leverage ratios suggest that Monster Beverage Corp has a solid financial foundation and is well-positioned to meet its financial obligations while maintaining financial stability and flexibility for future growth and investment opportunities.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 32.63 | 16.37 | 124.22 | 33.22 | 30.26 |
Monster Beverage Corp's interest coverage ratio has shown fluctuation over the past five years. The ratio was 30.26 as of December 31, 2020, indicating that the company generated operating income 30.26 times more than its interest expense for that year.
The ratio improved significantly to 33.22 by December 31, 2021, suggesting that the company's ability to cover interest payments strengthened further. The year 2022 saw a substantial increase in interest coverage to 124.22, indicating a significant improvement in the company's financial position with substantially higher operating income relative to its interest expense.
However, the interest coverage ratio declined to 16.37 by December 31, 2023, which may raise some concern as it indicates that the company's ability to cover interest payments decreased compared to the previous year. Nonetheless, the ratio rebounded to 32.63 by December 31, 2024, showcasing an improvement in the company's capacity to service its debt through its operating income.
Overall, Monster Beverage Corp has generally maintained a healthy interest coverage ratio over the years, signaling a strong ability to meet its interest obligations using its operating profits. Financial stakeholders should continue to monitor the trend in interest coverage to assess the company's financial health and management of debt obligations effectively.