Balance Sheet: Assets
The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.
Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.
Monster Beverage Corp., consolidated balance sheet: assets
US$ in thousands
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Liquidity and Current Assets
- Cash and cash equivalents exhibited a consistent upward trend from 2019 to 2023, with a notable increase in 2023 reaching approximately $2.3 billion, signaling enhanced liquidity positioning. Short-term investments saw significant growth from 2019 through 2021, peaking at around $1.75 billion, followed by a decline in 2022 and further reduction in 2023, suggesting a strategic shift in asset allocation or utilization.
- Accounts receivable demonstrated steady growth each year, increasing from approximately $540 million in 2019 to over $1.19 billion in 2023, indicating rising sales or extended credit terms. Inventories increased notably, especially between 2020 and 2022, nearly tripling, with a smaller increment into 2023, which could suggest accumulation of stock possibly in anticipation of demand or supply chain considerations.
- Prepaid expenses and other current assets grew moderately over the period, as did prepaid income taxes, the latter showing a more marked rise in 2023. Overall, current assets expanded substantially, nearly doubling from about $2.3 billion in 2019 to nearly $5.6 billion in 2023, reflecting significant growth in the short-term asset base.
- Noncurrent Assets and Long-Term Investments
- Investments increased over the five-year span, rising from approximately $13 million in 2019 to about $76 million in 2023, although this category exhibited moderate fluctuations. Property and equipment, net, showed substantial growth, particularly after 2021, escalating from roughly $314 million in 2020 to nearly $891 million in 2023, indicative of capital expenditure and asset base expansion.
- Deferred income taxes, net, peaked in 2020, then steadily decreased through 2023, which may reflect changes in timing differences or tax planning strategies. Goodwill remained relatively stable, with a modest increase in 2022, implying either an acquisition or a revaluation event. Similarly, other intangible assets, net, presented a continuous growth trajectory, increasing from approximately $1.05 billion in 2019 to about $1.43 billion in 2023, reflecting sustained investment in intangible resources.
- Other assets also increased over the period, particularly in 2022, before decreasing slightly in 2023. Overall, noncurrent assets expanded markedly from roughly $2.8 billion in 2019 to over $4 billion in 2023, underscoring a strengthening and broadening asset base beyond current assets.
- Total Asset Growth and Composition
- Total assets grew consistently year-over-year, accelerating notably in 2021 and continuing strong growth into 2023, culminating near $9.7 billion. This trend illustrates the company's significant expansion and asset accumulation over the analyzed period. The composition of assets shifted with heightened proportions in both current and noncurrent assets, reflecting balanced growth in liquidity, operational capacity, and long-term investment.
- Summary Insight
- The overall financial data reveals a company expanding both its operational scale and asset base steadily over the five-year span. Increases in cash, accounts receivable, inventories, and property, plant, and equipment indicate growth in operational activity and potential market demand. The steady rise in intangible assets and goodwill suggests ongoing investments in brand or intellectual property value. The decline in short-term investments after an initial peak may indicate strategic reallocations or liquidity preferences. Together, these trends suggest a robust growth phase accompanied by strategic asset management and capital investment efforts.