Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Monster Beverage Corp., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Current Ratio
- The current ratio demonstrates a generally increasing trend over the analyzed periods, starting at 2.92 at the end of Q1 2020 and peaking at 4.91 in Q1 2024. This upward movement indicates improving short-term liquidity, suggesting the company increasingly maintains sufficient current assets to cover its current liabilities. There are minor fluctuations, such as a slight dip during 2022, but overall, the ratio remains well above the critical threshold of 1.0 throughout the period.
- Quick Ratio
- The quick ratio follows a similar positive trend, rising from 2.29 in Q1 2020 to 4.01 by Q1 2024. This increase illustrates strengthened ability to meet short-term obligations with more liquid assets, excluding inventories. Although there is a noticeable dip in mid-2022, the quick ratio recovers subsequently, maintaining a stable range above 3.3 in the most recent quarters, which signifies strong liquidity health.
- Cash Ratio
- The cash ratio also shows consistent improvement, starting at 1.33 in Q1 2020 and reaching 2.90 by Q1 2024. This ratio indicates the company's capacity to cover current liabilities solely with its cash and cash equivalents, exhibiting a robust liquidity position. The ratio demonstrates some declines around mid-2022, but the general upward trajectory reaffirms increasing cash reserves relative to current liabilities.
Current Ratio
Monster Beverage Corp., current ratio calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Current assets | 6,035,514) | 5,588,996) | 5,311,515) | 5,654,113) | 5,294,609) | 4,764,897) | 4,696,691) | 4,696,620) | 4,743,666) | 4,682,110) | 4,383,673) | 3,950,675) | 3,433,872) | 3,140,955) | 2,825,847) | 2,371,450) | 2,048,722) | ||||||
| Current liabilities | 1,228,828) | 1,161,689) | 1,178,802) | 1,162,580) | 1,187,511) | 1,001,978) | 1,121,717) | 1,093,608) | 1,044,361) | 965,076) | 932,240) | 887,527) | 788,861) | 749,988) | 773,763) | 674,865) | 701,541) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Current ratio1 | 4.91 | 4.81 | 4.51 | 4.86 | 4.46 | 4.76 | 4.19 | 4.29 | 4.54 | 4.85 | 4.70 | 4.45 | 4.35 | 4.19 | 3.65 | 3.51 | 2.92 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||
| Coca-Cola Co. | 1.04 | 1.13 | 1.14 | 1.14 | 1.15 | 1.15 | 1.13 | 1.13 | 1.18 | 1.13 | 1.52 | 1.47 | 1.33 | — | — | — | — | ||||||
| Mondelēz International Inc. | 0.77 | 0.62 | 0.61 | 0.65 | 0.68 | 0.60 | 0.69 | 0.68 | 0.68 | 0.74 | 0.73 | 0.61 | 0.61 | — | — | — | — | ||||||
| PepsiCo Inc. | 0.86 | 0.85 | 0.88 | 0.84 | 0.87 | 0.80 | 0.92 | 0.83 | 0.87 | 0.83 | 0.95 | 0.91 | 0.93 | — | — | — | — | ||||||
| Philip Morris International Inc. | 0.94 | 0.75 | 0.89 | 0.85 | 0.85 | 0.72 | 0.92 | 0.89 | 0.92 | 0.92 | 1.00 | 1.18 | 1.18 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 6,035,514 ÷ 1,228,828 = 4.91
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends relating to the company's liquidity position over the observed period.
- Current Assets
- Current assets demonstrate a clear upward trajectory from March 31, 2020, through March 31, 2024. Starting at approximately $2.05 billion, the value steadily increased with minor fluctuations, reaching about $6.04 billion by the end of the period. The growth is consistent across most quarters, with occasional consolidation phases where the increase is less pronounced. This expansion in current assets suggests an improving ability to cover short-term obligations with relatively liquid resources.
- Current Liabilities
- Current liabilities also increase over the same timeframe but at a comparatively slower rate than current assets. From around $701.5 million in early 2020, the liabilities rose to approximately $1.23 billion by the first quarter of 2024. Despite this growth, there are some irregularities, including slight declines or plateaus in certain quarters, indicating active management in short-term obligations and potential refinancing or payment activities.
- Current Ratio
- The current ratio reflects the relationship between current assets and current liabilities and serves as an indicator of liquidity and short-term financial health. This ratio improved significantly from 2.92 in the first quarter of 2020 to a peak of around 4.91 by March 2024. The ratio consistently stayed above 3.5 after mid-2020, with gradual increases reflecting enhanced capacity to meet short-term liabilities. Occasional dips were observed but did not undermine the overall positive trend, which highlights strong liquidity management and an increasingly comfortable financial buffer.
In summary, the company has demonstrated a robust enhancement in its liquidity position over the analyzed periods. The steady increase in current assets, coupled with a relatively moderate rise in current liabilities, has favorably influenced the current ratio. The consistently strong current ratio above 4 in the later quarters signifies sound short-term financial stability and efficient working capital management.
Quick Ratio
Monster Beverage Corp., quick ratio calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Cash and cash equivalents | 2,576,524) | 2,297,675) | 1,773,849) | 1,869,774) | 1,672,660) | 1,307,141) | 1,303,048) | 1,132,039) | 1,014,786) | 1,326,462) | 1,712,671) | 1,584,239) | 1,178,879) | 1,180,413) | 1,074,730) | 921,326) | 701,836) | ||||||
| Short-term investments | 984,201) | 955,605) | 1,236,752) | 1,417,239) | 1,383,028) | 1,362,314) | 1,346,781) | 1,337,792) | 1,717,648) | 1,749,727) | 1,224,066) | 968,952) | 980,108) | 881,354) | 599,326) | 250,753) | 233,513) | ||||||
| Accounts receivable, net | 1,370,239) | 1,193,964) | 1,231,188) | 1,333,004) | 1,190,351) | 1,016,203) | 1,051,642) | 1,175,587) | 1,039,780) | 896,658) | 849,157) | 909,169) | 802,509) | 666,012) | 740,813) | 760,433) | 670,570) | ||||||
| Total quick assets | 4,930,964) | 4,447,244) | 4,241,789) | 4,620,017) | 4,246,039) | 3,685,658) | 3,701,471) | 3,645,418) | 3,772,214) | 3,972,847) | 3,785,894) | 3,462,360) | 2,961,496) | 2,727,779) | 2,414,869) | 1,932,512) | 1,605,919) | ||||||
| Current liabilities | 1,228,828) | 1,161,689) | 1,178,802) | 1,162,580) | 1,187,511) | 1,001,978) | 1,121,717) | 1,093,608) | 1,044,361) | 965,076) | 932,240) | 887,527) | 788,861) | 749,988) | 773,763) | 674,865) | 701,541) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Quick ratio1 | 4.01 | 3.83 | 3.60 | 3.97 | 3.58 | 3.68 | 3.30 | 3.33 | 3.61 | 4.12 | 4.06 | 3.90 | 3.75 | 3.64 | 3.12 | 2.86 | 2.29 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||
| Coca-Cola Co. | 0.75 | 0.72 | 0.78 | 0.82 | 0.81 | 0.77 | 0.80 | 0.78 | 0.80 | 0.81 | 1.17 | 1.12 | 0.99 | — | — | — | — | ||||||
| Mondelēz International Inc. | 0.21 | 0.29 | 0.27 | 0.25 | 0.29 | 0.30 | 0.35 | 0.32 | 0.35 | 0.42 | 0.43 | 0.30 | 0.32 | — | — | — | — | ||||||
| PepsiCo Inc. | 0.64 | 0.66 | 0.68 | 0.60 | 0.61 | 0.58 | 0.68 | 0.59 | 0.63 | 0.56 | 0.65 | 0.66 | 0.68 | — | — | — | — | ||||||
| Philip Morris International Inc. | 0.41 | 0.28 | 0.36 | 0.37 | 0.31 | 0.29 | 0.48 | 0.47 | 0.44 | 0.44 | 0.49 | 0.59 | 0.53 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 4,930,964 ÷ 1,228,828 = 4.01
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable trends in liquidity and working capital management dynamics over the observed periods.
- Total Quick Assets
- This metric exhibits a general upward trend from March 31, 2020 through March 31, 2024. Initial values rose from approximately 1.6 billion USD to over 4.9 billion USD by the end of the period, indicating an overall strengthening in highly liquid assets. Some fluctuations are evident, with a peak in December 2021 followed by a slight decline through 2022, but the growth resumed strongly into 2023 and early 2024.
- Current Liabilities
- Current liabilities increased steadily over the quarters, rising from roughly 700 million USD in early 2020 to nearly 1.23 billion USD by March 2024. Although the rate of increase is consistent, certain quarters show minor decreases or slower growth, particularly in late 2022 and early 2023, suggesting periodic efforts toward managing short-term obligations.
- Quick Ratio
- The quick ratio improved significantly from 2.29 in March 2020 to approximately 4.01 by March 2024. This indicates enhanced short-term liquidity, with quick assets growing faster than current liabilities. The ratio peaks notably around December 2021 before a moderate decline and subsequent rebound, reflecting fluctuations in liquid asset availability relative to immediate debt obligations. Overall, the ratio consistently remains above 2.2, denoting robust liquidity throughout.
In summary, the data portrays a company strengthening its liquidity position steadily over the analyzed timeframe. The increase in quick assets outpaces the growth in current liabilities, enabling an improved quick ratio. Periodic fluctuations exist but do not undermine the overall positive trend in the firm's ability to meet short-term liabilities with liquid resources.
Cash Ratio
Monster Beverage Corp., cash ratio calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Cash and cash equivalents | 2,576,524) | 2,297,675) | 1,773,849) | 1,869,774) | 1,672,660) | 1,307,141) | 1,303,048) | 1,132,039) | 1,014,786) | 1,326,462) | 1,712,671) | 1,584,239) | 1,178,879) | 1,180,413) | 1,074,730) | 921,326) | 701,836) | ||||||
| Short-term investments | 984,201) | 955,605) | 1,236,752) | 1,417,239) | 1,383,028) | 1,362,314) | 1,346,781) | 1,337,792) | 1,717,648) | 1,749,727) | 1,224,066) | 968,952) | 980,108) | 881,354) | 599,326) | 250,753) | 233,513) | ||||||
| Total cash assets | 3,560,725) | 3,253,280) | 3,010,601) | 3,287,013) | 3,055,688) | 2,669,455) | 2,649,829) | 2,469,831) | 2,732,434) | 3,076,189) | 2,936,737) | 2,553,191) | 2,158,987) | 2,061,767) | 1,674,056) | 1,172,079) | 935,349) | ||||||
| Current liabilities | 1,228,828) | 1,161,689) | 1,178,802) | 1,162,580) | 1,187,511) | 1,001,978) | 1,121,717) | 1,093,608) | 1,044,361) | 965,076) | 932,240) | 887,527) | 788,861) | 749,988) | 773,763) | 674,865) | 701,541) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Cash ratio1 | 2.90 | 2.80 | 2.55 | 2.83 | 2.57 | 2.66 | 2.36 | 2.26 | 2.62 | 3.19 | 3.15 | 2.88 | 2.74 | 2.75 | 2.16 | 1.74 | 1.33 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||
| Coca-Cola Co. | 0.60 | 0.58 | 0.63 | 0.65 | 0.61 | 0.59 | 0.62 | 0.57 | 0.55 | 0.63 | 0.93 | 0.85 | 0.76 | — | — | — | — | ||||||
| Mondelēz International Inc. | 0.05 | 0.10 | 0.09 | 0.08 | 0.10 | 0.11 | 0.15 | 0.14 | 0.14 | 0.25 | 0.24 | 0.14 | 0.14 | — | — | — | — | ||||||
| PepsiCo Inc. | 0.28 | 0.32 | 0.31 | 0.22 | 0.20 | 0.20 | 0.26 | 0.21 | 0.27 | 0.23 | 0.27 | 0.24 | 0.29 | — | — | — | — | ||||||
| Philip Morris International Inc. | 0.18 | 0.12 | 0.14 | 0.15 | 0.11 | 0.12 | 0.26 | 0.25 | 0.23 | 0.23 | 0.25 | 0.31 | 0.26 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 3,560,725 ÷ 1,228,828 = 2.90
2 Click competitor name to see calculations.
- Cash Assets Trend
- There is a clear overall upward trajectory in total cash assets from March 31, 2020, to March 31, 2024. Starting at approximately $935 million, cash assets increased significantly, peaking around December 31, 2021, at over $3 billion. Although there was a slight decrease in the following year, cash assets rebounded strongly again by the end of the period, reaching a new high of approximately $3.56 billion as of March 31, 2024.
- Current Liabilities Trend
- Current liabilities have generally increased over the same period, moving from about $701 million in March 2020 to around $1.23 billion by March 2024. The liabilities showed some fluctuations but maintained an upward trend, with a noticeable rise during the years 2021 and 2022. Overall, liabilities grew by over 75% over the five-year span, indicating an expanding operational scale or increased short-term obligations.
- Cash Ratio Analysis
- The cash ratio, indicating the ability to cover current liabilities with cash and cash equivalents, exhibited a strong position throughout the analyzed period. Starting at 1.33 in March 2020, it rose steadily to above 3 in late 2021, reflecting a strong liquidity buffer. Although it subsequently moderated, the ratio remained consistently above 2, signaling sustained liquidity strength. As of March 31, 2024, the cash ratio stood at 2.9, indicating that cash assets are nearly three times the current liabilities.
- Overall Financial Liquidity and Stability
- The company displays robust liquidity management, characterized by significant cash accumulation alongside controlled growth in current liabilities. The consistently high cash ratio suggests strong short-term financial stability and an ability to meet obligations without relying on asset liquidation or external financing. The fluctuations in cash assets correspond with managing operational needs and capital allocation, while the moderate increase in liabilities points to a strategy of growth balanced with caution.