Monster Beverage Corp (MNST)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,719,090 | 9,686,520 | 8,293,100 | 7,804,780 | 6,202,720 |
| Total stockholders’ equity | US$ in thousands | 5,957,720 | 8,228,740 | 7,025,040 | 6,566,950 | 5,160,860 |
| Financial leverage ratio | 1.30 | 1.18 | 1.18 | 1.19 | 1.20 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,719,090K ÷ $5,957,720K
= 1.30
Monster Beverage Corp's financial leverage ratio has been relatively stable over the past several years, decreasing slightly from 1.20 in December 2020 to 1.18 in December 2023, before rising to 1.30 by the end of December 2024. This ratio indicates that Monster Beverage Corp relies slightly more on debt financing than equity financing to support its operations and investments. The slight fluctuations in the financial leverage ratio suggest that the company has been managing its debt levels effectively, with the increase in 2024 possibly indicating a strategic decision to take on more debt for growth or expansion opportunities. Overall, a financial leverage ratio around 1.2 to 1.3 suggests that Monster Beverage Corp has a moderate level of financial leverage, which can potentially amplify returns but also increase financial risk.
Peer comparison
Dec 31, 2024