Monster Beverage Corp (MNST)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	9,686,520	9,314,340	9,263,340	8,844,360	8,293,100	8,204,800	8,175,010	8,187,460	7,804,780	7,449,410	7,071,540	6,534,370	6,202,720	5,697,680	5,193,810	4,881,500	5,150,350	5,137,370	5,084,330	4,655,850
Total stockholders’ equity	US$ in thousands	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	4,171,280	4,107,980	4,057,590	3,698,820
Financial leverage ratio		1.18	1.18	1.18	1.20	1.18	1.20	1.20	1.19	1.19	1.19	1.20	1.20	1.20	1.23	1.23	1.26	1.23	1.25	1.25	1.26

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,686,520K ÷ $8,228,740K
= 1.18

The financial leverage ratio of Monster Beverage Corp. has remained relatively stable over the last eight quarters, ranging between 1.18 and 1.20. This indicates that the company's level of debt relative to its equity has been consistent. A ratio of 1.18 to 1.20 suggests that the company is utilizing a moderate amount of debt to finance its operations, with a slight increase in leverage observed in Q1 2023 compared to previous quarters. While a higher leverage ratio can magnify returns, it also increases financial risk. In this case, Monster Beverage Corp. has maintained a stable leverage position without significant fluctuations, which suggests a relatively balanced approach to capital structure management.