Monster Beverage Corp. (NASDAQ:MNST)

The financial data exhibit several noteworthy trends and patterns over the five-year period analyzed. The net income demonstrates overall growth with fluctuations, increasing from 1,107,835 thousand US$ in 2019 to a peak of 1,630,988 thousand US$ in 2023, despite a dip in 2022. Depreciation and amortization expenses generally show a slight decline through 2021, followed by an upward trend through 2023. Non-cash lease expenses have steadily increased each year, more than doubling from 4,087 thousand US$ in 2019 to 9,043 thousand US$ in 2023.

The company recorded a gain on disposal of property and equipment in the earlier years which turned into a minor loss by 2023. Impairment losses on intangibles and property and equipment emerged in later years, with significant intangible impairment losses recognized especially in 2023 (38,700 thousand US$). Additionally, a notable one-time gain related to the Bang transaction was recorded in 2023 (−45,382 thousand US$), indicating a special event affecting results that year.

Stock-based compensation expenses remained relatively stable over the years, fluctuating around the 63,000–70,000 thousand US$ range. Deferred income taxes show significant volatility, switching between positive and negative values without a clear directional trend. Accounts receivable have increased negatively over time, indicating a rising cash inflow from customers or a reduction in outstanding receivables. Inventories followed a volatile pattern, including large negative values in some years, with a somewhat positive reversal by 2023.

Prepaid expenses, income taxes, and other assets reflect variable movements, with no persistent trend. Accounts payable increased steadily, particularly rising sharply in 2021 and 2023. Accrued liabilities and promotional allowances showed fluctuations, with accrued promotional allowances peaking in 2022 before declining in 2023. Accrued compensation and income taxes payable also display irregular movements, suggesting occasional timing differences or operational changes.

The effect of changes in operating assets and liabilities on cash flow was predominantly negative in all years, with the largest outflow observed in 2022. Correspondingly, adjustments reconciling net income to net cash from operating activities exhibited significant negative values except for notable positive adjustment in 2023.

Net cash provided by operating activities, despite fluctuations, remained strong and positive through the period, with a dip in 2022 and a substantial increase by 2023, reaching its highest level in the period analyzed (1,717,753 thousand US$).

Investing activities reveal large cash outflows consistent with acquisitions and capital expenditures. Significant purchases of available-for-sale investments and capital expenditures are evident, with acquisitions notably impacting 2022 and 2023 (including Bang Energy acquisition in 2023 and CANarchy acquisition in 2022). Proceeds from sales of property and equipment remained modest but slightly increased by 2023. The net cash used in investing activities peaked in 2021 due to sizable investment activities but decreased substantially thereafter.

Financing activities present mixed patterns. Issuance of common stock fluctuated, increasing significantly in 2023. Purchases of treasury stock exhibited large cash outflows in several years, especially in 2019, 2020, 2022, and 2023. Borrowings and repayments of debt were relatively minor and inconsistent, with no evident long-term debt financing or repayment trend. Overall, net cash from financing activities was negative in most years, reflecting substantial treasury stock repurchases and some repayments.

The effect of exchange rate changes on cash and cash equivalents varied widely, with positive impacts in some years and significant negative effects in others, particularly during 2021 and 2022. The net increase (decrease) in cash and cash equivalents remained positive except in 2022, which reflected a small decline compared to the other periods.

Consequently, cash and cash equivalents at year-end showed a clear upward trajectory from 797,957 thousand US$ in 2019 to 2,297,675 thousand US$ in 2023, signifying a strengthening liquidity position by the end of the period. Despite variability in investing and financing cash flows, operating cash flows and cash balances reflect strong cash generation capabilities and liquidity management over the years.

Net income and profitability

Increased overall with fluctuations; high in 2023 despite a dip in 2022.

Depreciation, amortization, and lease expenses

Declined until 2021 then increased; non-cash lease expense consistently rose.

Impairment and one-off items

Impairments appeared mainly after 2020; a significant Bang transaction gain recorded in 2023.

Working capital changes and operating cash flow

Operating assets and liabilities changes generally reduced cash; operating cash flow remained strong despite fluctuations.

Investing activities

Characterized by large outflows for acquisitions and investments, peaking in 2021, then reducing.

Financing activities

Fluctuating equity issuances, large treasury stock repurchases, minor debt activity, mainly cash outflows overall.

Cash position

Consistent growth in cash and equivalents, reaching a high in 2023.