Monster Beverage Corp (MNST)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 9,686,520 | 8,293,100 | 7,804,780 | 6,202,720 | 5,150,350 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $9,686,520K
= 0.00
The debt-to-assets ratio for Monster Beverage Corp. has consistently been 0.00 for the past five years, indicating that the company has not utilized any debt to finance its assets during this period. This implies that Monster Beverage Corp. has relied solely on equity financing, which may suggest strong financial stability and a lower risk of default since there is no debt obligation to service. While a low debt-to-assets ratio is generally considered positive, it's important to note that excessive reliance on equity financing may limit the company's ability to leverage opportunities for growth or expansion that could be achieved through debt financing. Overall, Monster Beverage Corp.'s consistent 0.00 debt-to-assets ratio reflects a conservative capital structure and prudent financial management.
Peer comparison
Dec 31, 2023