Monster Beverage Corp. (NASDAQ:MNST)

Asset Turnover Ratios

Both reported and adjusted total asset turnover ratios exhibit a general decline from 2019 through 2023. Reported total asset turnover dropped from 0.82 in 2019 to 0.74 in 2023, with a slight rebound in 2022. Adjusted total asset turnover follows a similar path, decreasing from 0.82 in 2019 to 0.75 in 2023 and showing minor fluctuations during the period.

Current Ratios

Current ratios, both reported and adjusted, have shown an increasing trend over the five-year period. The reported current ratio rose from 3.5 in 2019 to 4.81 in 2023, indicating improved short-term liquidity. The adjusted figures indicate a similar pattern, increasing from 3.76 to 5.0, suggesting a consistently strong liquidity position.

Debt Metrics

Reported debt to equity and debt to capital ratios have consistently remained at zero across all years, indicating no reported debt. Adjusted debt to equity and debt to capital ratios fluctuate marginally but remain very low, not exceeding 0.01. This points to a very low leverage position.

Financial Leverage

Reported financial leverage ratios demonstrate a slight downward trend, moving from 1.23 in 2019 to 1.18 in 2023. Adjusted financial leverage remains steady at approximately 1.14 during the same period, implying stable use of equity relative to assets over time.

Profitability Ratios

Reported net profit margins declined from 26.37% in 2019 to a low of 18.88% in 2022 before increasing to 22.84% in 2023. Adjusted net profit margins show a similar trend, decreasing steadily to 18.03% in 2022 then rebounding to 23.48% in 2023. This indicates a period of reduced profitability followed by some recovery in the most recent year.

Return on Equity (ROE)

ROE metrics, both reported and adjusted, decreased from approximately 26-27% in 2019-2020 to around 17-20% by 2023. There is a notable dip through 2021 and 2022, with some improvement in 2023. This trend suggests diminishing returns on shareholder equity over the period, partially recovering in the final year.

Return on Assets (ROA)

ROA values also declined during the period, with reported ROA falling from 21.51% in 2019 to 16.84% in 2023. Adjusted ROA similarly decreased from 21.34% in 2019 to 17.56% in 2023 after bottoming out in 2022. This indicates lower overall efficiency in asset utilization to generate earnings over the years, with slight improvement in the latest period.

The financial data reveals an overall positive trend in net sales from 2019 to 2023. Net sales increased steadily each year, rising from approximately 4.2 billion US dollars in 2019 to over 7.1 billion US dollars in 2023. This demonstrates consistent revenue growth over the five-year period.

Total assets also showed a significant upward trend, increasing from just over 5.1 billion US dollars in 2019 to nearly 9.7 billion US dollars by the end of 2023. This growth in total assets reflects expanding resources or investments made by the company over time.

Despite the growth in net sales and total assets, the reported total asset turnover ratio—calculated as net sales divided by total assets—displays a slight decline from 0.82 in 2019 to 0.74 in 2023. The ratio initially dropped from 0.82 in 2019 to 0.71 by 2021, then showed a minor rebound, settling around 0.74 in 2023. This suggests that while sales have increased, asset growth has outpaced sales growth somewhat, leading to a marginal decrease in asset efficiency.

When considering adjusted figures, which may account for non-recurring items or other adjustments, the adjusted net sales mirrored the same increasing pattern as reported net sales, rising from approximately 4.18 billion to about 7.12 billion between 2019 and 2023. Adjusted total assets increased similarly, from about 5.07 billion to 9.52 billion US dollars over the same period.

The adjusted total asset turnover ratio showed a comparable pattern to the reported ratio, starting at 0.82 in 2019, decreasing to 0.73 in 2021, then recovering slightly to 0.75 in 2023. This consistency between reported and adjusted turnover ratios indicates that the adjustments did not materially affect the asset turnover trend.

Overall, the data indicates strong growth in sales and asset base. However, asset turnover has declined slightly, implying that the company’s sales efficiency relative to its asset size has decreased moderately over the timeframe. The slight recovery in the last two years may suggest efforts to optimize asset utilization.

Net Sales

Consistent year-over-year growth, increasing from 4.2 billion to over 7.1 billion US dollars from 2019 to 2023.

Total Assets

Substantial growth, nearly doubling from about 5.1 billion to almost 9.7 billion US dollars during the same period.

Reported Total Asset Turnover

Decreasing trend with a low in 2021; slight improvement in later years but overall lower in 2023 compared to 2019.

Adjusted Net Sales

Movement closely tracking reported sales, confirming the sales growth pattern is robust to adjustments.

Adjusted Total Assets

Similar expansion as reported total assets, reinforcing growth in asset base.

Adjusted Total Asset Turnover

Exhibits the same declining and slight recovery pattern as reported turnover, indicating persistent but moderate decline in asset efficiency.

Current Assets

Current assets have shown a consistent upward trend from 2,316,309 thousand US dollars in 2019 to 5,588,996 thousand US dollars in 2023. This reflects a significant increase in available short-term resources over the five-year period.

Current Liabilities

Current liabilities have also increased over the same period, rising from 661,097 thousand US dollars in 2019 to 1,161,689 thousand US dollars in 2023. While liabilities are growing, their rate of increase is less pronounced compared to current assets.

Reported Current Ratio

The reported current ratio, a measure of liquidity, improved steadily from 3.5 in 2019 to 4.81 in 2023. This indicates an increasingly strong short-term financial position, showing that current assets are sufficient to cover current liabilities multiple times over.

Adjusted Current Assets

The adjusted current assets closely mirror the trend of reported current assets, increasing from 2,318,354 thousand US dollars in 2019 to 5,596,634 thousand US dollars in 2023. This adjustment maintains the general pattern of growth in liquid resources.

Adjusted Current Liabilities

Adjusted current liabilities have risen from 616,860 thousand US dollars in 2019 to 1,119,775 thousand US dollars in 2023. The increase in adjusted liabilities is somewhat less steep compared to the increase in adjusted assets, which supports liquidity improvement.

Adjusted Current Ratio

The adjusted current ratio has improved from 3.76 in 2019 to 5.00 in 2023. This ratio exhibits a stronger liquidity position than the reported current ratio, showcasing a consistent and favorable short-term financial health trend.

Overall Analysis

Both reported and adjusted figures reveal substantial growth in current assets and a more moderate increase in current liabilities, resulting in a steadily improving liquidity position from 2019 to 2023. The current ratio values well above 3 throughout the period suggest a robust capacity to meet short-term obligations. The adjustment applied to assets and liabilities enhances the clarity of financial position, reinforcing the positive trend in short-term financial stability. No decline or volatility is apparent, highlighting consistent and sustainable improvements in working capital management.

The financial data over the five-year period reveal certain trends and shifts in the company's debt and equity structure. Total debt experienced fluctuations, with a decline from 1,485 thousand USD in 2019 to 798 thousand USD in 2022, but a notable increase surged to 6,468 thousand USD by the end of 2023.

Stockholders’ equity demonstrated a consistent upward trend throughout the same period, growing from approximately 4,171,281 thousand USD in 2019 to about 8,228,744 thousand USD in 2023. This steady increase indicates continuous accumulation of equity and potentially retained earnings or capital infusion.

Reported debt to equity ratio

The reported debt to equity ratio remained at zero for all years. This suggests that reported total debt is negligible in comparison to stockholders’ equity or possibly that reported debt excludes certain liabilities considered in adjusted figures.

When considering adjusted figures, adjusted total debt decreased from 29,948 thousand USD in 2019 to 21,336 thousand USD in 2020, followed by a slight uptick to 22,380 thousand USD in 2021. In 2022, adjusted total debt increased markedly to 38,131 thousand USD and continued rising to 66,015 thousand USD in 2023.

Adjusted stockholders’ equity followed a similar upward progression as reported equity, rising from 4,420,255 thousand USD in 2019 to 8,336,440 thousand USD in 2023. Despite the increase in adjusted debt, the equity base has maintained relative strength and growth.

Adjusted debt to equity ratio

The adjusted debt to equity ratio remained very low across all years, from 0.01 in 2019, dipping to zero in 2020 and 2021, and returning to 0.01 in both 2022 and 2023. This reflects a minimal level of leverage in relation to the equity base, indicating a conservative approach to debt financing.

Overall, the company exhibited strong equity growth coupled with low debt levels, both reported and adjusted, until a significant increase in reported debt in 2023. However, the debt to equity ratios, both reported and adjusted, remained very low, implying a solid financial position with low leverage despite the uptick in debt in the most recent year.

The financial data reveals several notable trends regarding the company's debt and capital structure over the five-year period ending December 31, 2023.

Total Debt

Total debt remained relatively low and stable from 2019 through 2022, fluctuating between 798 thousand and 1,485 thousand USD. However, there was a significant increase in 2023, where total debt rose dramatically to 6,468 thousand USD. This sharp rise indicates a substantial change in the company's borrowing or liabilities profile in the most recent period.

Total Capital

Total capital exhibited a steady upward trend throughout the period. Starting at approximately 4,172,766 thousand USD in 2019, it increased consistently each year, reaching approximately 8,235,212 thousand USD by the end of 2023. This growth reflects either an increase in equity, retained earnings, or other components contributing to the company's capital base.

Reported Debt to Capital Ratio

The reported debt to capital ratio remained effectively at zero across all periods. This suggests that, under the reporting methodology applied, the total debt relative to capital was negligible or not recognized as materially impactful until potentially the latest year data were updated or reclassified.

Adjusted Total Debt

Adjusted total debt shows a fluctuating but generally moderate level from 2019 to 2022, ranging from about 21,336 thousand USD to 38,131 thousand USD. Similar to total debt, there was a marked increase to 66,015 thousand USD in 2023. This adjusted metric possibly captures additional liabilities or off-balance-sheet obligations, which also saw a significant increase in the most recent year.

Adjusted Total Capital

Adjusted total capital followed an increasing trend similar to total capital. It grew from approximately 4,450,203 thousand USD in 2019 to 8,402,455 thousand USD in 2023. The steady growth corroborates the enhanced capital base and likely reflects ongoing investment or accumulation of equity.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio remained very low throughout the period, oscillating around 0 to 0.01. Despite the increases in adjusted debt, its ratio to capital stayed minimal, indicating that the company maintains a strong capital position relative to its adjusted debt levels. The slight rises in 2019, 2022, and 2023 suggest incremental increases in leverage but still at a conservative scale.

In summary, the data illustrate a company with a stable and growing capital base over the five years, maintaining low leverage ratios when considering both reported and adjusted debt. The substantial increase in absolute debt figures, particularly in 2023, warrants attention but does not significantly disrupt the overall conservative leverage profile given the company's expanding capital base. This pattern may indicate strategic borrowing, possibly for expansion or investment purposes, supported by a robust capital structure that mitigates associated financial risk.

Total Assets

Total assets demonstrated a consistent upward trajectory throughout the five-year period, rising from approximately 5.15 billion USD in 2019 to nearly 9.69 billion USD in 2023. This represents an overall increase of about 88%, signaling substantial asset growth and possible business expansion over the analyzed timeframe.

Stockholders’ Equity

Stockholders’ equity also exhibited a steady increase from roughly 4.17 billion USD in 2019 to over 8.22 billion USD in 2023. The progression reflects a robust growth of about 97%, marginally outpacing the growth rate of total assets. This indicates a strengthening capital base and possibly retained earnings contributing to equity increment.

Reported Financial Leverage

The reported financial leverage ratio showed a gradual decline from 1.23 in 2019 to 1.18 in 2023. This marginal decrease suggests a modest improvement in financial structure, with a slightly lower proportion of debt relative to equity over time, enhancing financial stability.

Adjusted Total Assets

Adjusted total assets followed a similar growth pattern to the reported total assets, climbing steadily from approximately 5.07 billion USD in 2019 to about 9.52 billion USD in 2023. The consistency between adjusted and reported figures highlights reliability in asset valuation trends.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity increased correspondingly from 4.42 billion USD in 2019 to around 8.34 billion USD in 2023. The growth mirrors the reported equity increase, indicating the adjustments did not materially alter the equity trend and confirming financial robustness.

Adjusted Financial Leverage

The adjusted financial leverage ratio remained stable at 1.15 in 2019 and gently decreased to 1.14 by 2023, indicating steadiness in the leveraged capital structure after adjustments. This suggests that the company maintained a balanced approach to funding its operations with debt and equity over the period.

Net Income

The net income exhibited a general upward trend from 2019 through 2023, starting at $1,107,835 thousand and reaching $1,630,988 thousand. A peak was observed in 2020 at $1,409,594 thousand, followed by a slight decline in 2021 and 2022 before recovering significantly in 2023.

Net Sales

Net sales consistently increased over the five-year period, moving from $4,200,819 thousand in 2019 to $7,140,027 thousand in 2023. This represents steady growth year-over-year with the largest absolute increase occurring between 2022 and 2023.

Reported Net Profit Margin

The reported net profit margin experienced fluctuations. It rose from 26.37% in 2019 to a peak of 30.65% in 2020, then declined sharply to 18.88% by 2022 before improving to 22.84% in 2023. This indicates variability in profitability relative to sales.

Adjusted Net Income

Adjusted net income followed a similar pattern to net income, increasing from $1,081,428 thousand in 2019 to a high of $1,671,633 thousand in 2023. There was a slight dip in 2022 compared to prior years, but the figure rebounded notably in 2023.

Adjusted Net Sales

Adjusted net sales displayed consistent growth from $4,176,256 thousand in 2019 to $7,119,081 thousand in 2023. The growth trajectory was stable and aligned closely with the trends in net sales.

Adjusted Net Profit Margin

The adjusted net profit margin exhibited a decline from 25.89% in 2019 to 18.03% in 2022, followed by a recovery to 23.48% in 2023. This pattern reflects a decrease in operational profitability that partially reversed in the most recent year.

Overall Insights

Over the analyzed period, sales showed steady and significant growth, while profitability margins demonstrated volatility, peaking early in 2020 and contracting through 2022 before partial recovery in 2023. The adjusted measures correlate closely with the reported figures, reinforcing observed trends despite potential one-time items or accounting adjustments. The fluctuations in profit margins suggest varying cost management or pricing dynamics impacting overall profitability.

Net income

The net income demonstrated an overall upward trend from 2019 to 2023, increasing from $1,107,835 thousand to $1,630,988 thousand. A peak was observed in 2020 at approximately $1,409,594 thousand, followed by a slight decline through 2022, and a significant rebound in 2023.

Stockholders’ equity

Stockholders’ equity consistently increased during the five-year period. The figure rose from $4,171,281 thousand in 2019 to $8,228,744 thousand in 2023, indicating steady growth in shareholders' investment and retained earnings.

Reported ROE (Return on Equity)

Reported ROE showed a declining trend from 26.56% in 2019 to a low of 16.96% in 2022, before increasing slightly to 19.82% in 2023. This trend suggests decreasing profitability relative to equity over most of the period, with a modest recovery in the final year.

Adjusted net income

Adjusted net income followed a pattern similar to reported net income but with less volatility. Starting from $1,081,428 thousand in 2019, it peaked at $1,308,519 thousand in 2021, declined in 2022, and then increased sharply to $1,671,633 thousand in 2023. This indicates underlying profitability improvements after adjusting for certain items.

Adjusted stockholders’ equity

Adjusted stockholders’ equity displayed a consistent upward trajectory from $4,420,255 thousand in 2019 to $8,336,440 thousand in 2023. The growth rate aligns closely with the reported equity figures, signaling steady enhancement in the adjusted equity base.

Adjusted ROE

The adjusted ROE mirrors the trend of reported ROE, declining from 24.47% in 2019 to 15.92% in 2022, then rising to 20.05% in 2023. This reflects a reduction in return on the adjusted equity base through most years, with improvement in the latest year.

Summary of trends

Financial performance indicates steady growth in equity base, both reported and adjusted, over the five-year period. Profitability as measured by net income and adjusted net income fluctuated with a noticeable dip in 2022 followed by a recovery in 2023. Both reported and adjusted ROE ratios declined during 2019-2022, suggesting decreased efficiency in generating earnings from equity, but showed signs of improvement in 2023. The overall pattern points to strong capital growth accompanied by variations in profitability and efficiency ratios.

Net Income

The net income exhibited a generally positive trend over the five-year period. Starting at approximately 1.11 billion US dollars in 2019, it increased to approximately 1.41 billion in 2020, showing strong growth. However, there was a slight decline in 2021 and a more notable decrease in 2022, reaching around 1.19 billion. In 2023, net income rebounded significantly to approximately 1.63 billion US dollars, marking the highest level in the observed period.

Total Assets

Total assets consistently grew each year, beginning at about 5.15 billion US dollars in 2019 and increasing steadily to nearly 9.69 billion by the end of 2023. The asset base expanded considerably year-over-year, indicating ongoing investment or growth in asset holdings by the company.

Reported Return on Assets (ROA)

The reported ROA showed a declining trend from 2019 through 2022, starting at 21.51% and dropping to 14.37%. Despite this decline, ROA recovered partially to 16.84% in 2023. This pattern suggests decreasing efficiency in asset utilization to generate net income during most years, with some improvement in the most recent year.

Adjusted Net Income

Adjusted net income trends closely mirrored those of reported net income, with an initial increase from 1.08 billion in 2019 to over 1.27 billion in 2020. The following years showed minor fluctuations, decreasing to around 1.13 billion in 2022, followed by a strong recovery to approximately 1.67 billion in 2023. This indicates consistency between reported and adjusted earnings performance, with adjustments having limited impact on the overall trend.

Adjusted Total Assets

Adjusted total assets also showed a continuous upward trend, increasing every year from about 5.07 billion in 2019 to approximately 9.52 billion in 2023. This confirms persistent asset growth consistent with the reported figures, reflecting increasing scale or asset base adjusted for certain factors.

Adjusted Return on Assets (ROA)

Adjusted ROA closely followed the pattern of the reported ROA, declining steadily from 21.34% in 2019 to a low of 13.96% in 2022 before improving to 17.56% in 2023. The adjusted measure also indicates somewhat reduced asset efficiency over the period with a recovery in the most recent year, aligning with the company's overall financial performance improvements.

Summary

The data analysis reveals a company experiencing robust asset growth yet facing challenges in maintaining consistent returns on these assets throughout most years in the period. Despite a downturn in profitability and asset efficiency around 2021-2022, significant recovery is observed in 2023 for both net income and ROA measures, whether reported or adjusted. The consistency between reported and adjusted figures suggests reliability in the reported earnings and asset valuations. Overall, the company demonstrates capacity for growth and resilience, with an improving outlook evident in the latest financial year.