Monster Beverage Corp (MNST)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	7,719,090	8,053,300	8,060,900	10,098,100	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
Total stockholders’ equity	US$ in thousands	5,957,720	5,779,400	5,866,320	8,577,790	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
Financial leverage ratio		1.30	1.39	1.37	1.18	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

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 displayed some fluctuation over the reporting periods, ranging from 1.18 to 1.39. Generally, a financial leverage ratio of 1 indicates that the company has an equal amount of debt and equity in its capital structure. A ratio above 1 suggests the company is relying more on debt financing, while a ratio below 1 indicates a higher proportion of equity financing.

The company's financial leverage ratio increased in the mid-2024 period, reaching its peak at 1.39. This significant increase may signify a higher reliance on debt to finance its operations or investments during that period. Subsequently, there was a slight decrease in the ratio by the end of 2024, suggesting a potential shift towards a more balanced capital structure.

Overall, monitoring Monster Beverage Corp's financial leverage ratio is essential for understanding its capital structure and potential financial risks associated with high levels of debt. It is advisable for stakeholders to assess the company's ability to manage its debt levels effectively while maintaining financial stability and profitability.