Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Analysis of Solvency Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Price to Operating Profit (P/OP) since 2005
- Analysis of Debt
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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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Current Ratio
- The current ratio demonstrates a general upward trend over the analyzed period, increasing from 3.02 as of March 31, 2019, to 4.91 by March 31, 2024. Notably, there was a dip around the first quarter of 2020, decreasing to 2.92, followed by a steady recovery and growth exceeding prior levels. Peaks are observed at the end of 2020 and late 2023, indicating an improvement in short-term liquidity and the company’s ability to meet its current liabilities with current assets.
- Quick Ratio
- The quick ratio follows a similar increasing pattern, rising from 2.34 in March 2019 to 4.01 in March 2024. A decline is evident in early 2020, aligning with the current ratio's dip; however, it quickly recovers and continues to grow. The quick ratio remains consistently lower than the current ratio but shows a strengthening liquidity position, reflecting the company's reliance on more liquid assets excluding inventories to cover short-term obligations.
- Cash Ratio
- The cash ratio shows more volatility compared to the current and quick ratios but generally trends upward, moving from 1.40 in March 2019 to 2.90 in March 2024. A decline is observed at the start of 2020, similar to other liquidity ratios, followed by a recovery and gradual increase over time. Although it remains the lowest of the liquidity ratios, its growth indicates an increased cash and cash equivalents buffer available to cover immediate 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Current assets | ||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Current ratio1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Coca-Cola Co. | ||||||||||||||||||||||||||||
| Mondelēz International Inc. | ||||||||||||||||||||||||||||
| PepsiCo Inc. | ||||||||||||||||||||||||||||
| Philip Morris International Inc. | ||||||||||||||||||||||||||||
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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets exhibit an overall increasing trend from March 2019 through March 2024. Starting at approximately 1.91 billion USD in March 2019, values fluctuate with some short-term decreases observed around the early part of 2020, which could be attributed to external factors impacting liquidity. However, the subsequent quarters show a robust recovery and steady growth, peaking near 6.04 billion USD in the first quarter of 2024. The sustained rise indicates strengthening asset liquidity and potentially enhanced operational capacity or increased cash reserves over the period.
- Current Liabilities
- Current liabilities demonstrate a relatively stable but gradually increasing pattern over the same period. Beginning at about 631 million USD in March 2019, the figures show incremental growth with minor fluctuations. Liabilities peak around the first quarter of 2024, reaching around 1.23 billion USD. The moderate increase in liabilities, contrasted with a more pronounced asset growth, suggests effective management of short-term obligations relative to asset accumulation.
- Current Ratio
- The current ratio displays a consistently strong liquidity position throughout the reported periods. From an initial ratio of 3.02 in March 2019, it rises steadily and peaks at 4.91 by March 2024. This upward movement indicates an improving ability to cover short-term liabilities with current assets, reflecting enhanced financial stability. Temporary dips, such as in March 2020, coincide with corresponding asset decreases, yet the ratio quickly recovers and surpasses previous levels, underscoring resilient liquidity 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Cash and cash equivalents | ||||||||||||||||||||||||||||
| Short-term investments | ||||||||||||||||||||||||||||
| Accounts receivable, net | ||||||||||||||||||||||||||||
| Total quick assets | ||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Quick ratio1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Coca-Cola Co. | ||||||||||||||||||||||||||||
| Mondelēz International Inc. | ||||||||||||||||||||||||||||
| PepsiCo Inc. | ||||||||||||||||||||||||||||
| Philip Morris International Inc. | ||||||||||||||||||||||||||||
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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the liquidity position of the company over the observed periods.
- Total Quick Assets
- The total quick assets demonstrate an overall upward trend from March 2019 through March 2024. Beginning at approximately 1.48 billion USD in March 2019, the value experienced some fluctuations but generally increased, reaching nearly 4.93 billion USD by March 2024. There were periods of more pronounced growth, particularly between June 2020 and December 2021, and then again from March 2023 to the end of the data series. Slight declines or stagnations are observed in mid-2022 and late 2023, but these do not interrupt the general positive growth trajectory.
- Current Liabilities
- Current liabilities have shown a gradual increase over the same timeframe, rising from approximately 631 million USD at the beginning of 2019 to around 1.23 billion USD by March 2024. The growth pattern is less volatile compared to quick assets, with a steady upward movement interrupted by minor fluctuations, notably a decline in December 2022. Despite this, the overall level of current liabilities has increased notably. This rise in liabilities is consistent but at a slower pace compared to the expansion of quick assets.
- Quick Ratio
- The quick ratio, reflecting the company's short-term liquidity, displays a generally improving trend from 2.34 in March 2019 to over 4.0 by March 2024. After initial values fluctuating around 2.3 to 2.8 in 2019 and early 2020, there is a marked increase starting mid-2020, peaking around 4.12 in December 2021. The ratio subsequently dips somewhat in 2022 but remains above 3.3, indicating a strong liquidity position. In 2023 and early 2024, the quick ratio rebounds again, stabilizing close to or above 4.0, which signifies enhanced ability to meet short-term obligations without reliance on inventory.
In summary, the company has progressively strengthened its liquidity position over the examined period. The growth in total quick assets outpaces the rise in current liabilities, resulting in an improving quick ratio. This indicates enhanced short-term financial stability and suggests prudent management of liquid resources relative to immediate liabilities. Notwithstanding minor short-term fluctuations, these trends reflect positively on the company's capacity to cover short-term obligations with readily available assets.
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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Cash and cash equivalents | ||||||||||||||||||||||||||||
| Short-term investments | ||||||||||||||||||||||||||||
| Total cash assets | ||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Cash ratio1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Coca-Cola Co. | ||||||||||||||||||||||||||||
| Mondelēz International Inc. | ||||||||||||||||||||||||||||
| PepsiCo Inc. | ||||||||||||||||||||||||||||
| Philip Morris International Inc. | ||||||||||||||||||||||||||||
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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
-
The total cash assets demonstrate a generally upward trajectory from March 2019 to March 2024. Starting at $882,041 thousand in March 2019, the cash balance increases significantly in subsequent quarters, peaking around December 2021 at roughly $3,076,189 thousand. There is a slight decline observed in 2022, with cash assets falling to approximately $2,469,831 thousand by June 2022, followed by a moderate recovery through 2023 and into early 2024, ultimately reaching $3,560,725 thousand by March 2024. This pattern suggests growing liquidity overall, despite some fluctuations during 2022.
- Current Liabilities
-
Current liabilities show a gradual increasing trend over the period under review. They start at $630,972 thousand in March 2019 and generally increase each quarter, reaching $965,076 thousand by December 2021. Following this period, the liabilities continue to rise, peaking at $1,122,171 thousand by September 2022, and then slightly decreasing and stabilizing around $1,168,689 to $1,228,828 thousand towards the end of the series in March 2024. The steady increase in current liabilities aligns with the growth of the business scale, albeit with less volatility compared to cash assets.
- Cash Ratio
-
The cash ratio exhibits strong liquidity positions throughout the periods. Initially, the ratio rises from 1.4 in March 2019 to over 3.1 by the end of 2021, indicating that cash and cash equivalents are more than three times the current liabilities at this peak. Subsequently, the ratio declines to about 2.26 in June 2022, reflecting a relative decrease in liquidity, likely driven by the dip in cash assets during that time. However, by March 2024, the cash ratio has rebounded to 2.9, maintaining an overall solid liquidity buffer well above 1, which suggests sound short-term financial health and the ability to cover current liabilities comfortably with readily available cash.
- Overall Analysis
-
Over the five-year period, the financial data reveal a pattern of increasing cash reserves and current liabilities, with cash assets growing at a faster rate, resulting in improving liquidity metrics. The strong cash ratio at the end of the period indicates that cash levels have been managed prudently relative to short-term obligations. The fluctuations observed around 2022 may reflect external economic challenges or strategic changes impacting cash flows and liabilities, but the subsequent recovery signifies a return to a strong liquidity position. The company's ability to maintain a cash ratio above 2 in recent quarters reflects conservative financial management and an emphasis on maintaining ample liquid resources relative to its short-term debt.