Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Analysis of Solvency Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
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- Analysis of Debt
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Long-term Activity Ratios (Summary)
Monster Beverage Corp., long-term (investment) activity 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).
The analysis of the financial ratios over the reported periods reveals distinct trends in the operational efficiency and asset utilization of the company. The net fixed asset turnover ratio demonstrates a notable pattern over time. Initially, starting from the first available data point, the ratio showed an upward trajectory, increasing from 14.07 to a peak near 17.66, indicating an improved efficiency in generating revenue from fixed assets. However, post that peak, a consistent declining trend is observed, with the ratio decreasing steadily to reach approximately 7.95 by the most recent quarter, suggesting a reduction in the efficiency in using fixed assets to generate sales.
Regarding the total asset turnover ratio, the figures illustrate a relatively stable trend with minor fluctuations throughout the reporting periods. Starting at 0.82, the ratio experienced a slight decrease and hovered around the low 0.70s in subsequent periods. This stability around the 0.70 to 0.74 range indicates a consistent level of effectiveness in utilizing total assets to produce revenue, with no significant improvements or deteriorations over time.
The equity turnover ratio follows a pattern somewhat similar to total asset turnover but with a more pronounced initial rise and subsequent gradual decline. Beginning at 1.01, the ratio increased to a peak of about 1.12 before beginning a slow descent to approximately 0.86 by the last quarter. This decrease suggests that the company has generated progressively less revenue per unit of equity invested in the company in the later periods compared to earlier ones, signaling a marginal decline in equity efficiency.
- Net Fixed Asset Turnover
- Initial increase from 14.07 to about 17.66, followed by a steady decline to 7.95.
- Indicates early improvements in fixed asset utilization with a significant reduction in recent periods.
- Total Asset Turnover
- Stable performance ranging between 0.70 and 0.82 with minor variations.
- Consistent use of overall assets to generate revenue with no major trend shifts.
- Equity Turnover
- Rises initially from 1.01 to 1.12, then gradually decreases to 0.86.
- Slight decline in revenue generated per equity dollar over time following an initial improvement.
Net Fixed Asset Turnover
Monster Beverage Corp., net fixed asset turnover 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) | ||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||
| Property and equipment, net | ||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Net fixed asset turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, 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
Net fixed asset turnover
= (Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023
+ Net salesQ2 2023)
÷ Property and equipment, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The quarterly financial data reveals several observable trends spanning from early 2019 through the first quarter of 2024. A detailed assessment of net sales, property and equipment, and net fixed asset turnover provides key insights into operational performance and asset utilization over the reported periods.
- Net Sales
- Net sales exhibited a general upward trajectory over the observed timeframe. Starting from approximately 946 million US dollars in the first quarter of 2019, sales grew steadily with minor fluctuations. Notable increases occurred during mid to late 2021 and continued into 2023, reaching peaks above 1.85 billion US dollars in the third quarter of 2023. Although there was a slight decline toward the end of 2023 and into early 2024, net sales remained substantially higher compared to the initial periods in 2019.
- Property and Equipment, Net
- The net value of property and equipment showed consistent growth across the quarters. From a base of approximately 241 million US dollars in early 2019, there was a pronounced increase beginning in 2022, where the net value rose significantly each quarter. By the first quarter of 2024, property and equipment net value surpassed 923 million US dollars, reflecting substantial capital investment and asset acquisition over the period under review.
- Net Fixed Asset Turnover Ratio
- This ratio, a measure of asset efficiency in generating sales, initially displayed very high values exceeding 14.0 in 2019 and early 2020, peaking around 17.66 in the last quarter of 2021. However, starting in 2022, this ratio demonstrated a marked decline, dropping steadily each quarter to reach approximately 7.95 by the end of 2023 and slightly under 8.0 in early 2024. The decline in this ratio contrasts with the increasing asset base, indicating that the increase in property and equipment value outpaced sales growth in recent quarters, resulting in lower asset turnover efficiency.
In summary, the company's net sales have grown substantially over the examined periods, reflecting strong revenue expansion. Concurrently, property and equipment investments have increased sharply, especially from 2022 onward, suggesting aggressive asset growth or capital expenditure. The net fixed asset turnover ratio's downward trend post-2021 highlights a relative decrease in the efficiency of utilizing fixed assets to generate sales, which may warrant further examination regarding asset deployment or market conditions impacting asset productivity. These trends collectively suggest growth accompanied by evolving operational dynamics concerning asset utilization.
Total Asset Turnover
Monster Beverage Corp., total asset turnover 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) | ||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Total asset turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Total Asset Turnover, 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
Total asset turnover
= (Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023
+ Net salesQ2 2023)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales
- Over the observed period, net sales exhibited a generally increasing trend, rising from approximately $946 million in the first quarter of 2019 to nearly $1.9 billion by the first quarter of 2024. There were fluctuations within this growth trajectory, including a notable peak in the second quarter of 2021 at about $1.46 billion, followed by a slight decline in late 2022 before recovering again toward early 2024.
- Total Assets
- Total assets showed consistent growth across the period, starting at around $4.66 billion in early 2019 and reaching nearly $10.1 billion by the first quarter of 2024. This steady increase reflects a significant expansion of the asset base, with occasional periods of slower growth but no substantial declines.
- Total Asset Turnover
- The total asset turnover ratio, available from the third quarter of 2019 onward, demonstrated a gradual decline from 0.82 to a low around 0.71 by the end of 2021. Thereafter, the ratio slightly recovered and fluctuated between 0.72 and 0.76 up to the first quarter of 2024. This suggests a moderate decrease in efficiency of asset utilization over time, followed by a partial stabilization.
- Summary
- Overall, the data indicate steady growth in both sales and asset size, reflecting business expansion. However, the declining and then stabilizing total asset turnover ratio implies that the increase in assets has outpaced sales growth to some extent, pointing to a potential decrease in asset efficiency. The fluctuations in sales near the end of the period suggest some variability in demand or market conditions.
Equity Turnover
Monster Beverage Corp., equity turnover calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||
| Stockholders’ equity | ||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Equity turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Equity Turnover, 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
Equity turnover
= (Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023
+ Net salesQ2 2023)
÷ Stockholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data over the specified quarterly periods reveals several important trends related to net sales, stockholders' equity, and equity turnover ratio.
- Net Sales
-
Net sales demonstrated an overall upward trend through the periods, beginning at approximately $946 million in the first quarter of 2019 and rising to nearly $1.9 billion by the first quarter of 2024. Despite slight fluctuations, including a moderate decrease observed in the final quarter of 2022 and the first quarter of 2023, the general pattern reflects consistent growth. Notably, several quarters experienced substantial increases, such as between the first quarter of 2021 and the second quarter of the same year, indicating periods of accelerated revenue growth.
- Stockholders' Equity
-
The stockholders’ equity steadily increased over the time horizon, starting at approximately $3.7 billion in March 2019 and reaching about $8.6 billion by March 2024. This growth appears continuous and uninterrupted, suggesting a strengthening equity base. There are no evident declines or periods of volatility, which points to a stable or improving financial position with respect to shareholders’ claims.
- Equity Turnover Ratio
-
The equity turnover ratio was only available starting from the third quarter of 2019, with an initial value close to 1.01. Subsequent data shows a generally downward trend in the ratio, decreasing from around 1.12 in mid-2020 to values oscillating between 0.85 and 0.91 in latter quarters. This decline suggests that net sales are accounting for a smaller proportion of equity over time, indicating a reduced efficiency in utilizing equity to generate sales. However, the ratio stabilizes around the mid-to-high 0.80s during the recent periods, denoting some normalization after the initial decline.
Overall, the data indicates solid sales growth complemented by significant increases in stockholders' equity, which typically signals financial strength. However, the declining equity turnover ratio points to a nuanced dynamic where equity growth outpaces sales growth proportionally, affecting the efficiency metric. Continued monitoring of these relationships would be advisable to assess the sustainability of growth and capital usage effectiveness.