Balance Sheet: Liabilities and Stockholders’ Equity

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.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Monster Beverage Corp., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Accounts payable	564,379)	444,265)	404,263)	296,800)	274,045)
Current finance lease liabilities	6,449)	757)	960)	799)	1,485)
Accrued liabilities	177,539)	172,234)	210,004)	141,854)	112,590)
Accrued promotional allowances	269,061)	255,631)	211,461)	186,658)	166,761)
Deferred revenue	41,914)	43,311)	42,530)	45,429)	44,237)
Accrued compensation	87,392)	72,463)	65,459)	55,015)	47,262)
Income taxes payable	14,955)	13,317)	30,399)	23,433)	14,717)
Current liabilities	1,161,689)	1,001,978)	965,076)	749,988)	661,097)
Deferred revenue	204,251)	223,800)	243,249)	264,436)	287,469)
Noncurrent finance lease liabilities	19)	41)	41)	24)	—)
Other liabilities	91,819)	42,245)	29,467)	27,408)	30,505)
Noncurrent liabilities	296,089)	266,086)	272,757)	291,868)	317,974)
Total liabilities	1,457,778)	1,268,064)	1,237,833)	1,041,856)	979,071)
Common stock, $0.005 par value	5,613)	3,209)	3,200)	3,193)	3,182)
Additional paid-in capital	4,975,115)	4,780,013)	4,652,620)	4,537,982)	4,397,511)
Retained earnings	5,939,736)	9,001,173)	7,809,549)	6,432,074)	5,022,480)
Accumulated other comprehensive income (loss)	(125,337)	(159,073)	(69,165)	3,034)	(32,387)
Common stock in treasury, at cost	(2,566,383)	(6,600,281)	(5,829,253)	(5,815,423)	(5,219,505)
Stockholders’ equity	8,228,744)	7,025,041)	6,566,951)	5,160,860)	4,171,281)
Total liabilities and stockholders’ equity	9,686,522)	8,293,105)	7,804,784)	6,202,716)	5,150,352)

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).

The financial data reveals several key trends in the company’s liabilities and equity over the five-year period ending December 31, 2023.

Current Liabilities: Current liabilities increased consistently each year from approximately $661 million in 2019 to over $1.16 billion in 2023, representing substantial growth. Notably, accounts payable rose significantly from $274 million to $564 million, indicating a notable increase in short-term obligations to suppliers. Accrued liabilities and accrued promotional allowances also exhibited steady increases, reflecting potentially higher operational or marketing expenses. Accrued compensation showed a rising trend from $47 million to $87 million, suggesting growth in employee-related expenses. Income taxes payable fluctuated but remained comparatively low relative to other current liabilities.
Noncurrent Liabilities: Noncurrent liabilities decreased slightly from $318 million in 2019 to just under $266 million by 2022 but rose again to nearly $296 million in 2023. Other liabilities more than doubled from $30 million to approximately $92 million over the period, pointing towards increased obligations not defined under current liabilities. Finance lease liabilities remained minimal, with current portions decreasing initially and then rising sharply in 2023, possibly reflecting changes in lease agreements or finance strategies.
Total Liabilities: Total liabilities showed a clear upward trajectory, growing from around $979 million in 2019 to nearly $1.46 billion in 2023. This growth emphasizes an overall increase in the company's obligations over time, with current liabilities being the more dominant component.
Stockholders’ Equity: Stockholders’ equity expanded steadily, from about $4.17 billion in 2019 to $8.23 billion in 2023. Key components contributing to this trend include increasing additional paid-in capital, rising from $4.40 billion to $4.98 billion, and retained earnings, which more than doubled initially but saw a decline in 2023 after peaking over $9 billion in 2022. The decrease in retained earnings in 2023 may warrant further investigation into the causes, such as dividend payments, net income fluctuations, or other equity adjustments. Accumulated other comprehensive income (loss) fluctuated, remaining negative overall, which can impact total equity levels.
Capital Stock and Treasury Stock: Common stock par value grew modestly, while treasury stock showed a significant reduction in its negative balance in 2023, suggesting share buyback activity was reduced or shares were reissued, improving net stockholder equity.
Balance Sheet Total: The total of liabilities and stockholders’ equity increased markedly from approximately $5.15 billion in 2019 to nearly $9.69 billion in 2023, reflecting overall growth in the company’s financial base.

In summary, the company’s liabilities and equity base both expanded significantly over the five-year span. The marked growth in current liabilities, especially accounts payable and accrued promotional allowances, points to increased operational scale and marketing efforts. The rising stockholders’ equity, supported by increased paid-in capital and strong retained earnings until 2022, underscores solid capitalization despite a reversal in earnings retention in 2023. The data suggests the company is experiencing growth, accompanied by greater financial obligations and evolving equity structure.

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Monster Beverage Corp. (NASDAQ:MNST)

Balance Sheet: Liabilities and Stockholders’ Equity