Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Monster Beverage Corp., liquidity ratios
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Current ratio | 4.76 | 4.85 | 4.19 | 3.50 | 3.00 | |
| Quick ratio | 3.68 | 4.12 | 3.64 | 2.83 | 2.40 | |
| Cash ratio | 2.66 | 3.19 | 2.75 | 2.01 | 1.59 |
Based on: 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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Monster Beverage Corp. current ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Monster Beverage Corp. quick ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Monster Beverage Corp. cash ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Current Ratio
Monster Beverage Corp., current ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 4,764,897) | 4,682,110) | 3,140,955) | 2,316,309) | 1,804,170) | |
| Current liabilities | 1,001,978) | 965,076) | 749,988) | 661,097) | 601,145) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 4.76 | 4.85 | 4.19 | 3.50 | 3.00 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Altria Group Inc. | 0.84 | 0.71 | 0.79 | 0.59 | — | |
| Coca-Cola Co. | 1.15 | 1.13 | 1.32 | 0.76 | — | |
| Mondelēz International Inc. | 0.60 | 0.74 | 0.66 | 0.50 | — | |
| PepsiCo Inc. | 0.80 | 0.83 | 0.98 | 0.86 | — | |
| Philip Morris International Inc. | 0.72 | 0.92 | 1.10 | 1.09 | — | |
| Current Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 0.82 | 0.89 | 0.99 | 0.79 | — | |
| Current Ratio, Industry | ||||||
| Consumer Staples | 0.87 | 0.92 | 0.91 | 0.81 | — | |
Based on: 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).
1 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= 4,764,897 ÷ 1,001,978 = 4.76
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Monster Beverage Corp. current ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Quick Ratio
Monster Beverage Corp., quick ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 1,307,141) | 1,326,462) | 1,180,413) | 797,957) | 637,513) | |
| Short-term investments | 1,362,314) | 1,749,727) | 881,354) | 533,063) | 320,650) | |
| Accounts receivable, net | 1,016,203) | 896,658) | 666,012) | 540,330) | 484,562) | |
| Total quick assets | 3,685,658) | 3,972,847) | 2,727,779) | 1,871,350) | 1,442,725) | |
| Current liabilities | 1,001,978) | 965,076) | 749,988) | 661,097) | 601,145) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 3.68 | 4.12 | 3.64 | 2.83 | 2.40 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Altria Group Inc. | 0.67 | 0.54 | 0.56 | 0.28 | — | |
| Coca-Cola Co. | 0.77 | 0.81 | 0.96 | 0.56 | — | |
| Mondelēz International Inc. | 0.35 | 0.48 | 0.43 | 0.28 | — | |
| PepsiCo Inc. | 0.58 | 0.56 | 0.77 | 0.66 | — | |
| Philip Morris International Inc. | 0.29 | 0.44 | 0.56 | 0.56 | — | |
| Quick Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 0.51 | 0.57 | 0.67 | 0.51 | — | |
| Quick Ratio, Industry | ||||||
| Consumer Staples | 0.39 | 0.43 | 0.47 | 0.38 | — | |
Based on: 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).
1 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 3,685,658 ÷ 1,001,978 = 3.68
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Monster Beverage Corp. quick ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Cash Ratio
Monster Beverage Corp., cash ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 1,307,141) | 1,326,462) | 1,180,413) | 797,957) | 637,513) | |
| Short-term investments | 1,362,314) | 1,749,727) | 881,354) | 533,063) | 320,650) | |
| Total cash assets | 2,669,455) | 3,076,189) | 2,061,767) | 1,331,020) | 958,163) | |
| Current liabilities | 1,001,978) | 965,076) | 749,988) | 661,097) | 601,145) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 2.66 | 3.19 | 2.75 | 2.01 | 1.59 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Altria Group Inc. | 0.47 | 0.53 | 0.55 | 0.26 | — | |
| Coca-Cola Co. | 0.59 | 0.63 | 0.75 | 0.41 | — | |
| Mondelēz International Inc. | 0.11 | 0.25 | 0.24 | 0.08 | — | |
| PepsiCo Inc. | 0.20 | 0.23 | 0.41 | 0.28 | — | |
| Philip Morris International Inc. | 0.12 | 0.23 | 0.37 | 0.36 | — | |
| Cash Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 0.26 | 0.35 | 0.44 | 0.30 | — | |
| Cash Ratio, Industry | ||||||
| Consumer Staples | 0.24 | 0.30 | 0.34 | 0.24 | — | |
Based on: 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).
1 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 2,669,455 ÷ 1,001,978 = 2.66
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Monster Beverage Corp. cash ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |