Monster Beverage Corp. (NASDAQ:MNST)

Current Ratio

The current ratio demonstrated a generally increasing trend from 3.5 in 2019 to 4.85 in 2021, indicating an improvement in the company's ability to cover its short-term liabilities with current assets. This ratio slightly declined to 4.76 in 2022 but edged upward again to 4.81 in 2023, suggesting sustained strong liquidity throughout the period.

Quick Ratio

The quick ratio saw a steady increase from 2.83 in 2019 to 4.12 in 2021, reflecting an enhanced capacity to meet immediate obligations without relying on inventory. A noticeable decrease to 3.68 occurred in 2022, followed by a slight recovery to 3.83 in 2023. This pattern points to a minor fluctuation in liquid assets relative to current liabilities while maintaining overall good liquidity.

Cash Ratio

The cash ratio rose from 2.01 in 2019 to 3.19 in 2021, highlighting growing cash and cash-equivalent reserves compared to current liabilities. However, it decreased to 2.66 in 2022 before increasing moderately to 2.8 in 2023. Despite these fluctuations, the cash ratio remains strong, indicating a robust position in terms of cash liquidity.

Current Assets

The current assets demonstrated an overall upward trend from 2019 through 2023. Starting at approximately 2.32 billion US dollars in 2019, these assets increased significantly to nearly 5.59 billion US dollars by the end of 2023. This consistent growth suggests an expanding resource base available to cover short-term obligations and potentially indicates increased liquidity or asset accumulation.

Current Liabilities

Current liabilities also showed a rising pattern over the five-year period, moving from about 661 million US dollars in 2019 to around 1.16 billion in 2023. Though the increase is substantial, it is proportionally smaller than the growth observed in current assets during the same timeframe, which may have implications for the company’s liquidity position.

Current Ratio

The current ratio, calculated as current assets divided by current liabilities, reflects the company’s ability to meet short-term obligations. This ratio improved from 3.5 in 2019 to a peak of 4.85 in 2021, indicating strong liquidity. It slightly decreased to 4.76 in 2022, before stabilizing at 4.81 in 2023. Throughout the period, the ratio remained well above the standard threshold of 1, signifying robust short-term financial health and effective management of current assets relative to liabilities.

Total quick assets

The total quick assets have shown a generally increasing trend over the five-year period. Starting at approximately 1.87 billion US dollars at the end of 2019, the figure rose significantly to about 2.73 billion in 2020, followed by a further increase to nearly 3.97 billion in 2021. In 2022, there was a slight decline to around 3.69 billion, but the value rebounded in 2023 to approximately 4.45 billion, reaching the highest level observed in the period.

Current liabilities

Current liabilities have also increased steadily over the same time frame. They started at about 661 million US dollars in 2019 and rose each year, reaching around 750 million in 2020, 965 million in 2021, and just over 1 billion in 2022. By 2023, current liabilities further increased to roughly 1.16 billion, marking a consistent upward trajectory throughout the five years.

Quick ratio

The quick ratio, representing the liquidity position relative to current liabilities, demonstrated an overall improvement with some fluctuation. Beginning at 2.83 in 2019, it increased sharply to 3.64 in 2020 and further to 4.12 in 2021, indicating a strengthening liquidity position during these years. However, in 2022, the quick ratio dipped to 3.68, reflecting a tightening in liquidity. Despite this decline, the ratio improved slightly to 3.83 in 2023, maintaining a robust liquidity level above three times the current liabilities throughout the period examined.

The analysis of the company's annual financial data reveals several important trends related to liquidity and short-term financial health over the five-year period from 2019 through 2023.

Total Cash Assets

The total cash assets have generally increased from 1,331,020 thousand US dollars in 2019 to 3,253,280 thousand US dollars in 2023. This reflects a significant accumulation of cash resources over the period, although there was a slight decline observed in 2022 compared to the previous year. Overall, the trend indicates strengthening liquidity buffers.

Current Liabilities

Current liabilities have also shown a rising trend, growing from 661,097 thousand US dollars in 2019 to 1,161,689 thousand US dollars in 2023. The increase appears consistent year-on-year, suggesting potentially higher short-term obligations or increased operational scale. The growth rate of current liabilities is notable but less steep compared to the growth in cash assets.

Cash Ratio

The cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, started at 2.01 in 2019 and improved to 2.80 by 2023. There was a peak ratio of 3.19 in 2021, followed by a decrease in 2022 before rising again in 2023. Despite some minor fluctuations, the ratio remained well above 1 throughout, indicating a strong liquidity position with ample cash to cover short-term liabilities without relying on other current assets.

In summary, the financial data demonstrates a robust and improving liquidity profile over the reviewed years, with total cash assets increasing substantially and consistently exceeding current liabilities by a wide margin. The cash ratio confirms a comfortable cushion, implying prudent cash management and a low risk of liquidity distress in the near term.