Return on Equity (ROE)
since 2005
Calculation
Monster Beverage Corp., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 19.82% | = | 100 | × | 1,630,988) | ÷ | 8,228,744) |
| Dec 31, 2022 | 16.96% | = | 100 | × | 1,191,624) | ÷ | 7,025,041) |
| Dec 31, 2021 | 20.98% | = | 100 | × | 1,377,475) | ÷ | 6,566,951) |
| Dec 31, 2020 | 27.31% | = | 100 | × | 1,409,594) | ÷ | 5,160,860) |
| Dec 31, 2019 | 26.56% | = | 100 | × | 1,107,835) | ÷ | 4,171,281) |
| Dec 31, 2018 | 27.50% | = | 100 | × | 993,004) | ÷ | 3,610,901) |
| Dec 31, 2017 | 21.07% | = | 100 | × | 820,678) | ÷ | 3,895,212) |
| Dec 31, 2016 | 21.40% | = | 100 | × | 712,685) | ÷ | 3,329,709) |
| Dec 31, 2015 | 11.37% | = | 100 | × | 546,733) | ÷ | 4,809,410) |
| Dec 31, 2014 | 31.89% | = | 100 | × | 483,185) | ÷ | 1,515,150) |
| Dec 31, 2013 | 34.13% | = | 100 | × | 338,661) | ÷ | 992,279) |
| Dec 31, 2012 | 52.77% | = | 100 | × | 340,020) | ÷ | 644,397) |
| Dec 31, 2011 | 29.23% | = | 100 | × | 286,219) | ÷ | 979,158) |
| Dec 31, 2010 | 25.60% | = | 100 | × | 212,029) | ÷ | 828,398) |
| Dec 31, 2009 | 35.68% | = | 100 | × | 208,716) | ÷ | 584,953) |
| Dec 31, 2008 | 24.76% | = | 100 | × | 108,032) | ÷ | 436,316) |
| Dec 31, 2007 | 35.39% | = | 100 | × | 149,406) | ÷ | 422,167) |
| Dec 31, 2006 | 43.52% | = | 100 | × | 97,949) | ÷ | 225,084) |
| Dec 31, 2005 | 50.02% | = | 100 | × | 62,775) | ÷ | 125,509) |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The financial trajectory from 2005 to 2023 is characterized by substantial growth in absolute profitability and a significant expansion of the equity base, which has resulted in a downward trend in the Return on Equity (ROE) over the long term.
- Net Income Growth
- Net income demonstrates a consistent long-term upward trend, increasing from 62.7 million US dollars in 2005 to 1.63 billion US dollars in 2023. While growth was largely linear, periodic fluctuations occurred, such as a decline in 2008 and a slight contraction in 2022, though the overall trajectory remains strongly positive.
- Stockholders' Equity Expansion
- Equity grew aggressively over the analyzed period, rising from 125.5 million US dollars in 2005 to 8.23 billion US dollars in 2023. A notable surge occurred between 2014 and 2015, where equity more than tripled, moving from 1.52 billion to 4.81 billion US dollars. This rapid accumulation of equity has fundamentally altered the denominator of the ROE calculation.
- Return on Equity (ROE) Analysis
- The ROE exhibited high volatility and a general decline from its early peaks. In the initial period (2005–2007), ROE was exceptionally high, starting at 50.02%. A significant spike to 52.77% occurred in 2012, which coincided with a temporary reduction in stockholders' equity despite rising net income.
- A structural shift is evident starting in 2015, when ROE dropped to a period low of 11.37%. This decline corresponds with the massive increase in stockholders' equity during the same timeframe. From 2016 through 2023, the ROE stabilized, fluctuating within a narrower band between 16.96% and 27.50%.
The observation that net income continued to grow while ROE generally declined suggests that the company's equity base grew at a faster rate than its bottom-line earnings. This pattern is typical of a maturing company transitioning from a high-growth phase with a lean capital structure to a more stable phase with a larger retained earnings base.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
Monster Beverage Corp., ROE, long-term trends, comparison to competitors
| Monster Beverage Corp. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2023 | 19.82% | 41.30% | 17.50% | 49.04% | — |
| Dec 31, 2022 | 16.96% | 39.59% | 10.11% | 51.96% | — |
| Dec 31, 2021 | 20.98% | 42.48% | 15.21% | 47.48% | — |
| Dec 31, 2020 | 27.31% | 40.14% | 12.89% | 52.92% | — |
| Dec 31, 2019 | 26.56% | 46.99% | 14.19% | 49.47% | — |
| Dec 31, 2018 | 27.50% | 37.89% | 13.19% | 86.20% | — |
| Dec 31, 2017 | 21.07% | 7.31% | 11.19% | 44.60% | — |
| Dec 31, 2016 | 21.40% | 28.30% | 6.59% | 57.04% | — |
| Dec 31, 2015 | 11.37% | 28.77% | 25.94% | 45.73% | — |
| Dec 31, 2014 | 31.89% | 23.41% | 7.87% | 37.35% | — |
| Dec 31, 2013 | 34.13% | 25.88% | 12.09% | 27.76% | — |
| Dec 31, 2012 | 52.77% | 27.51% | 9.40% | 27.71% | — |
| Dec 31, 2011 | 29.23% | 27.10% | 10.02% | 31.29% | 3,751.53% |
| Dec 31, 2010 | 25.60% | 38.09% | 11.48% | 29.86% | 207.05% |
| Dec 31, 2009 | 35.68% | 27.52% | 11.67% | 35.38% | 110.95% |
| Dec 31, 2008 | 24.76% | 28.37% | 13.07% | 42.47% | 91.87% |
| Dec 31, 2007 | 35.39% | 27.51% | 9.49% | 32.83% | — |
| Dec 31, 2006 | 43.52% | 30.02% | 10.72% | 36.71% | — |
| Dec 31, 2005 | 50.02% | 29.79% | 8.89% | 28.62% | — |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Food, Beverage & Tobacco)
Monster Beverage Corp., ROE, long-term trends, comparison to sector (food, beverage & tobacco)
| Monster Beverage Corp. | Food, Beverage & Tobacco | |
|---|---|---|
| Dec 31, 2023 | 19.82% | 52.90% |
| Dec 31, 2022 | 16.96% | 51.06% |
| Dec 31, 2021 | 20.98% | 53.84% |
| Dec 31, 2020 | 27.31% | 55.44% |
| Dec 31, 2019 | 26.56% | 55.17% |
| Dec 31, 2018 | 27.50% | 67.69% |
| Dec 31, 2017 | 21.07% | 35.87% |
| Dec 31, 2016 | 21.40% | 46.07% |
| Dec 31, 2015 | 11.37% | 51.57% |
| Dec 31, 2014 | 31.89% | 37.04% |
| Dec 31, 2013 | 34.13% | 33.90% |
| Dec 31, 2012 | 52.77% | 32.24% |
| Dec 31, 2011 | 29.23% | 30.95% |
| Dec 31, 2010 | 25.60% | 32.24% |
| Dec 31, 2009 | 35.68% | 30.24% |
| Dec 31, 2008 | 24.76% | 33.30% |
| Dec 31, 2007 | 35.39% | 21.47% |
| Dec 31, 2006 | 43.52% | 22.65% |
| Dec 31, 2005 | 50.02% | 19.24% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Consumer Staples)
Monster Beverage Corp., ROE, long-term trends, comparison to industry (consumer staples)
| Monster Beverage Corp. | Consumer Staples | |
|---|---|---|
| Dec 31, 2023 | 19.82% | 30.71% |
| Dec 31, 2022 | 16.96% | 32.10% |
| Dec 31, 2021 | 20.98% | 31.40% |
| Dec 31, 2020 | 27.31% | 30.98% |
| Dec 31, 2019 | 26.56% | 22.71% |
| Dec 31, 2018 | 27.50% | 28.05% |
| Dec 31, 2017 | 21.07% | 25.14% |
| Dec 31, 2016 | 21.40% | 25.00% |
| Dec 31, 2015 | 11.37% | 23.15% |
| Dec 31, 2014 | 31.89% | 23.21% |
| Dec 31, 2013 | 34.13% | 24.09% |
| Dec 31, 2012 | 52.77% | 23.55% |
| Dec 31, 2011 | 29.23% | 23.75% |
| Dec 31, 2010 | 25.60% | 24.19% |
| Dec 31, 2009 | 35.68% | 23.20% |
| Dec 31, 2008 | 24.76% | 22.49% |
| Dec 31, 2007 | 35.39% | 18.15% |
| Dec 31, 2006 | 43.52% | 18.58% |
| Dec 31, 2005 | 50.02% | 22.40% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).