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 data reveals several significant trends in the company’s profitability and equity position over the analyzed periods.
- Net Income
- Net income demonstrates substantial growth from 2005 through 2023, increasing from approximately $62.8 million to roughly $1.63 billion. The progression is generally upward, with notable jumps in certain years such as a doubling growth between 2009 and 2010, and continued steady increases thereafter. Some fluctuations are present, for example, a decline is observed in 2022 compared to 2021, but net income rebounds strongly in 2023.
- Stockholders’ Equity
- Stockholders’ equity also shows an increasing trend throughout most of the period, starting at about $125.5 million in 2005 and reaching approximately $8.23 billion in 2023. There are a few irregularities including a large drop between 2011 and 2012, and again a decline from 2014 to 2016 before recovery. Despite these setbacks, the overall trajectory remains positive, indicating sustained reinvestment and capital growth.
- Return on Equity (ROE)
- ROE exhibits a declining trend in percentage terms over the years. Initially, ROE is high, peaking above 50% in 2012, but gradually decreases to under 20% by 2023. This downward trend suggests that while the company’s equity base has grown, the efficiency in using that equity to generate net income has diminished. The decline may indicate increasing equity without proportional gains in net income or changes in operational efficiency.
Overall, the company has experienced strong growth in both net income and stockholders' equity, reflecting expansion and capital accumulation. However, the declining ROE points to a reduced rate of return on equity investment, signaling that future focus may need to be on improving capital utilization and operational effectiveness to maintain profitability growth in line with equity growth.
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).