Monster Beverage Corp (MNST)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	8,228,740	7,025,040	6,566,950	5,160,860	4,171,280
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $8,228,740K)
= 0.00

Based on the data provided, Monster Beverage Corp. has maintained a debt-to-capital ratio of 0.00 for the past five years, including as of December 31, 2023. A debt-to-capital ratio of 0.00 indicates that the company has not utilized any debt in its capital structure during the period under review. This could be a strategic decision by the company to finance its operations through equity or retained earnings rather than taking on debt.

Having a debt-to-capital ratio of 0.00 can be seen as a positive indicator of Monster Beverage Corp.'s financial health and stability, as it suggests that the company is not relying on borrowed funds to finance its operations or expansion activities. However, it's worth noting that a low or zero debt-to-capital ratio may also imply missed opportunities for leveraging debt at lower costs for potential growth or investment opportunities.

Overall, the consistent 0.00 debt-to-capital ratio for Monster Beverage Corp. over the years highlights the company's conservative approach to capital structure and suggests a strong financial position with minimal financial risk associated with debt obligations.