Monster Beverage Corp. (NASDAQ:MNST)

Land

The value of land shows a consistent increase over the five-year period, rising from $78.3 million in 2019 to $152.3 million in 2023. There is a marked acceleration in growth starting in 2021, with a significant jump observed between 2021 and 2022.

Leasehold improvements

Leasehold improvements demonstrate a steady upward trend, growing from $10.4 million in 2019 to $37.9 million in 2023. The increase is especially notable from 2021 onward, nearly tripling between 2021 and 2023, indicating substantial investment in leased property enhancements during this period.

Furniture and fixtures

Furniture and fixtures remain relatively stable in the initial years, oscillating around $8.3 million from 2019 to 2021. A moderate increase occurs subsequently, reaching $11.4 million by 2023, reflecting gradual but steady capital expenditures.

Office and computer equipment

The figures for office and computer equipment exhibit minor fluctuations but overall an increasing pattern are observed. From $22.8 million in 2019, values slightly decreased in 2020 and 2021, but recovered and climbed to $25.6 million by 2023.

Computer software

Computer software values grow from $4.5 million in 2019 to peak at $7.4 million in 2021, followed by a decline over the next two years to $5.3 million in 2023. This decline suggests possible amortization, disposals, or reduced capital spending in software assets.

Equipment

Equipment values experience a decline from $214.3 million in 2019 to $185.3 million in 2020, followed by a modest recovery in 2021. From 2021, a sharp increase is recorded, surging to $426.5 million in 2023, representing the most substantial growth among the categories, highlighting aggressive investment or acquisition of equipment assets.

Buildings

Building assets increase moderately from $126.3 million in 2019 to $211.9 million in 2023, with a slight dip in 2021. The overall trend indicates ongoing capital investment in property infrastructure.

Vehicles

Vehicle assets show steady growth from $41.1 million in 2019 to $69.5 million in 2023, reflecting consistent increases in fleet size or vehicle-related assets.

Assets under construction

This category shows no values in 2019 and 2020, appears at $20.1 million in 2021, and then escalates rapidly to $211.6 million by 2023. The significant rise indicates substantial ongoing capital projects or expansions progressing toward completion.

Property and equipment, gross

The gross property and equipment amount rises steadily from $506.1 million in 2019 to $538.5 million in 2021, then experiences a marked jump to $1.15 billion in 2023. This reflects the combined effect of increases in individual asset categories, particularly equipment and assets under construction.

Accumulated depreciation and amortization

Accumulated depreciation and amortization increase steadily in magnitude from -$207.4 million in 2019 to -$261.2 million in 2023, indicating ongoing wear and usage of fixed assets, consistent with increasing asset bases.

Property and equipment, net

Net property and equipment values display a relatively flat trend between 2019 and 2021, hovering around $313 million. Thereafter, a significant rise is observed, reaching $890.8 million by 2023. This substantial growth largely results from increased gross asset investments outpacing accumulated depreciation, especially due to large purchases and assets under construction.

The analysis of the annual property, plant, and equipment data reveals several notable trends over the five-year period ending in 2023.

Average Age Ratio (%)

The average age ratio shows a consistent decline from 48.49% in 2019 to 26.13% in 2023. This indicates that the assets are becoming relatively younger compared to their estimated total useful life, suggesting ongoing investment in newer assets or retirement of older assets.

Estimated Total Useful Life (in years)

The estimated total useful life of the assets has increased steadily from 9 years in 2019 and 2020 to 16 years in 2023. This extension suggests improvements either in asset durability or a change in accounting estimates related to asset longevity.

Estimated Age, Time Elapsed Since Purchase (in years)

The estimated age of assets remained relatively stable, fluctuating slightly between 4 and 5 years over the period. This stability indicates a relatively consistent asset replacement or acquisition policy.

Estimated Remaining Life (in years)

The estimated remaining life of the assets has increased markedly from 4 years in 2019 to 12 years in 2023. This improvement reflects the combination of increased total useful life and stable asset age, resulting in longer expected future service periods for the assets.

Overall, the data indicates a trend toward younger, longer-lived assets with significant increases in both estimated useful life and remaining life, which could signal capital investment in higher quality or more durable property, plant, and equipment.

Property and Equipment, Gross

The gross value of property and equipment shows a consistent upward trend over the analyzed period. It increased from approximately 506 million USD at the end of 2019 to over 1.15 billion USD by the end of 2023. Notably, the most substantial increases occurred between 2021 and 2023, with a particularly sharp rise from 2021 to 2022 and continuing growth into 2023, indicating significant investments or acquisitions in fixed assets during these years.

Accumulated Depreciation and Amortization

Accumulated depreciation and amortization remained relatively stable from 2019 to 2020 but started to increase steadily afterwards. The value rose from around 207 million USD in 2019 to 261 million USD in 2023. This increasing trend is consistent with the rising gross property and equipment values, reflecting ongoing depreciation of the expanding asset base.

Land

The value of land assets gradually increased from approximately 78 million USD in 2019 to about 152 million USD in 2023. The growth trend is steady with a notable jump between 2021 and 2022, suggesting acquisitions or revaluations of land holdings during this period.

Average Age Ratio

The average age ratio of the property and equipment decreased significantly from 48.49% in 2019 to 26.13% in 2023. This downward trend implies that the fixed assets on the books have been getting newer overall, likely due to the substantial capital investments made, which have added recent assets and reduced the relative average aging of the portfolio.

Property and Equipment, Gross

The gross value of property and equipment exhibited a consistent upward trend over the five-year period. Beginning at approximately 506 million US dollars at the end of 2019, it increased moderately through 2020 and 2021, then experienced a significant rise in 2022 and a more pronounced increase by the end of 2023, reaching over 1.15 billion US dollars. This suggests substantial investment or acquisitions in property and equipment assets during the latter years.

Land

The value attributed to land showed a steady increase from about 78.3 million US dollars in 2019 to over 152 million US dollars by the end of 2023. Notably, there was a marked increase between 2021 and 2022, which continued into 2023, reflecting either land acquisitions or revaluations contributing to the asset base.

Depreciation and Amortization Expense

Depreciation and amortization expense remained relatively stable initially, around 49 million US dollars in 2019 and 2020, then declined slightly in 2021 to about 45.7 million US dollars. However, it increased again in 2022 and more markedly in 2023 to approximately 63 million US dollars. This pattern indicates rising expenses related to asset depreciation, likely correlating with the increased gross property and equipment balances and changes in estimated useful life.

Estimated Total Useful Life

The estimated useful life of property and equipment has lengthened over the period, starting at 9 years in 2019 and 2020, then gradually increasing each year to reach 16 years by the end of 2023. This extension suggests changes in asset composition or reassessment of asset longevity, which may impact depreciation calculations and future expense recognition.

Overall Analysis

The data reflects a robust expansion in property and equipment holdings, underpinned by increased land values and asset acquisitions or improvements. The rising depreciation expense, particularly in the latest two years, aligns with the larger asset base despite a concurrent extension in estimated useful life. Extending asset life could indicate management's expectation of longer-term usage or improvements in asset durability, partially mitigating the impact of higher asset values on depreciation expense. These trends suggest strategic capital deployment and evolving asset management policies.

Over the examined period, the accumulated depreciation and amortization increased consistently, moving from $207,434 thousand as of December 31, 2019, to $261,235 thousand by the end of December 31, 2023. This suggests a continuous allocation of the cost of property, plant, and equipment over their useful lives, reflective of ongoing asset usage and aging.

The depreciation and amortization expense exhibited some variability but demonstrated an overall upward trend. Starting at $49,100 thousand in 2019, it remained nearly constant into 2020 before declining slightly to $45,700 thousand in 2021. Subsequently, the expense increased to $53,700 thousand in 2022 and further to $63,000 thousand in 2023. This pattern indicates a resurgence in expense recognition, which may imply either new asset additions or changes in depreciation methods or estimates.

The time elapsed since purchase remained relatively stable, ranging between 4 and 5 years throughout the period, with a slight fluctuation but no significant trend. This consistency may indicate a steady pace of asset acquisition or replacement policy that maintains the average age of fixed assets relatively constant.

Accumulated Depreciation and Amortization

Consistent increase over five years, rising by approximately 26% from 2019 to 2023, indicating steady consumption of asset value.

Depreciation and Amortization Expense

Initial stability followed by a dip in 2021, then a marked increase in 2022 and 2023, possibly reflecting changes in asset base or expense recognition policies.

Time Elapsed Since Purchase

Stable at around 4 years, suggesting a consistent asset acquisition cycle without major shifts in asset aging.

Net Property and Equipment

The net value of property and equipment shows a generally upward trend over the analyzed periods. Starting from approximately 298.6 million USD at the end of 2019, it witnessed moderate growth through 2020 and 2021, maintaining levels slightly above 300 million USD. A significant increase occurred in 2022, with the net value rising to about 516.9 million USD, followed by a further substantial increase reaching approximately 890.8 million USD by the end of 2023. This represents nearly a threefold increase over the five-year span, indicating notable capital investment or asset acquisition in the latter years.

Land

The reported value of land held by the company similarly shows growth across the periods. Beginning at about 78.3 million USD at the end of 2019, the land value rose steadily, reaching 85.9 million USD in 2020 and slightly dipping to 85.5 million USD in 2021. Subsequently, a pronounced increase occurred during 2022, with the value expanding to approximately 139.8 million USD, and this upward trend continued in 2023 to about 152.3 million USD. The growth in land value accompanies the overall expansion in property and equipment net, likely reflecting strategic acquisitions or revaluations of fixed assets.

Depreciation and Amortization Expense

The annual depreciation and amortization expense remains relatively stable in the early years, with values around 49.1 million USD and 49.3 million USD for 2019 and 2020 respectively. In 2021, there was a modest decrease to 45.7 million USD. However, in 2022 the expense increased to 53.7 million USD, and this upward movement continued in 2023, reaching 63.0 million USD. This upward trend aligns with the increase in property and equipment net, reflecting higher depreciation charges likely as a result of increased asset base.

Estimated Remaining Life

The estimated remaining useful life of the property and equipment shows a consistent increase over the periods, beginning at 4 years in 2019 and rising to 5 years in both 2020 and 2021. A more marked increase was observed in 2022, with an estimate of 7 years, followed by a substantial jump to 12 years in 2023. This suggests either the acquisition of newer or longer-lived assets or a revision in asset life estimations aligning with capital expansion and possibly technological upgrades.