Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Monster Beverage Corp., profitability 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).
The analysis of the quarterly financial data reveals notable trends across multiple key profitability and performance metrics over the observed periods.
- Gross Profit Margin
- The gross profit margin exhibited a gradual decline from approximately 59.8% at the start of the period to a low near 50.3% by the end of 2022. Beginning in early 2023, the margin showed signs of recovery, increasing modestly to about 53.45% by the first quarter of 2024. This trend suggests initial pressure on direct costs or pricing but a partial stabilization and improvement more recently.
- Operating Profit Margin
- The operating profit margin mirrored the contraction seen in the gross margin with a peak near 35.5% around the end of 2020, subsequently declining sharply to a trough of roughly 25.1% by late 2022. Following this low point, the margin improved moderately through 2023 into early 2024, reaching just above 27%. The pattern indicates increased operating expenses or margins compression during 2021-2022, with some operational efficiency gains or margin recovery thereafter.
- Net Profit Margin
- Net profit margin followed a similar trajectory, rising from approximately 26% to a high around 30.65% by the end of 2020. Thereafter, it declined steadily to about 18.88% by the end of 2022. From 2023 onwards, a recovery phase is evident as the margin increased to around 22.8% by early 2024. This reflects the combined impact of gross and operating profitability changes along with tax, interest, or other non-operating items.
- Return on Equity (ROE)
- The return on equity showed a downward trend from a high near 29% at the beginning of the period to about 17% by the end of 2022. Although somewhat volatile, a mild recovery appeared in 2023 with ROE increasing to approximately 19.5% by early 2024. This pattern signals a reduction in shareholder returns likely linked to decreased profitability and possibly asset base or leverage changes, with recent signs of partial improvement.
- Return on Assets (ROA)
- Similar to ROE, the return on assets declined steadily from roughly 23% at the start of 2020 to around 14.4% by late 2022, followed by a gradual rise to 16.6% in early 2024. The trend reflects reduced efficiency or profitability in asset utilization during the middle period, with modest recovery thereafter.
In summary, the data depicts a period of declining profitability and returns from 2020 through 2022, followed by a phase of stabilization and moderate improvement in 2023 and early 2024. This suggests the entity faced margin pressures and challenges impacting profitability during the intermediate periods but has taken steps resulting in recovery across key financial metrics.
Return on Sales
Return on Investment
Gross Profit Margin
Monster Beverage Corp., gross profit margin 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) | |||||||||||||||||||||||
| Gross profit | 1,027,129) | 938,372) | 983,763) | 974,222) | 897,849) | 784,314) | 833,725) | 779,861) | 776,667) | 767,582) | 789,158) | 836,838) | 714,935) | 690,684) | 736,531) | 659,469) | 637,196) | ||||||
| Net sales | 1,899,098) | 1,730,108) | 1,856,028) | 1,854,961) | 1,698,930) | 1,512,930) | 1,624,286) | 1,655,260) | 1,518,574) | 1,425,045) | 1,410,557) | 1,461,934) | 1,243,816) | 1,196,283) | 1,246,362) | 1,093,896) | 1,062,097) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Gross profit margin1 | 53.45% | 53.14% | 52.58% | 52.16% | 50.77% | 50.30% | 50.74% | 51.81% | 54.51% | 56.10% | 57.06% | 57.86% | 58.61% | 59.23% | 59.82% | 59.92% | 59.82% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||
| Coca-Cola Co. | 59.98% | 59.52% | 59.14% | 58.52% | 58.09% | 58.14% | 58.49% | 58.89% | 60.27% | 60.27% | 60.72% | 60.61% | 59.42% | — | — | — | — | ||||||
| Mondelēz International Inc. | 41.69% | 38.22% | 37.77% | 36.59% | 35.79% | 35.92% | 36.34% | 37.76% | 38.54% | 39.19% | 39.82% | 40.44% | 40.43% | — | — | — | — | ||||||
| PepsiCo Inc. | 54.13% | 54.21% | 53.93% | 53.58% | 53.28% | 53.03% | 53.03% | 53.13% | 53.20% | 53.35% | 53.87% | 54.23% | 54.65% | — | — | — | — | ||||||
| Philip Morris International Inc. | 63.70% | 63.35% | 63.12% | 62.58% | 63.07% | 64.10% | 65.32% | 66.49% | 67.17% | 68.06% | 68.14% | 68.02% | 67.59% | — | — | — | — | ||||||
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
Gross profit margin = 100
× (Gross profitQ1 2024
+ Gross profitQ4 2023
+ Gross profitQ3 2023
+ Gross profitQ2 2023)
÷ (Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023
+ Net salesQ2 2023)
= 100 × (1,027,129 + 938,372 + 983,763 + 974,222)
÷ (1,899,098 + 1,730,108 + 1,856,028 + 1,854,961)
= 53.45%
2 Click competitor name to see calculations.
The analysis of the quarterly data reveals several notable trends regarding the company's gross profit, net sales, and gross profit margin over the examined periods.
- Net Sales
- Net sales demonstrate a generally upward trajectory from March 2020 through March 2024. Starting from approximately 1,062 million USD in March 2020, net sales increased steadily, peaking around 1,895 million USD in March 2024. There are observable seasonal fluctuations within each year, with some quarters exhibiting slight declines compared to the previous quarter, but the overall long-term trend is growth. This consistent increase indicates effective market penetration, pricing strategies, or demand growth over these years.
- Gross Profit
- Gross profit figures largely mirror the trend in net sales, showing growth from about 637 million USD in March 2020 to over 1 billion USD by March 2024. The gross profit shows quarter-to-quarter variations, but each successive year generally posts higher profits than the preceding year. Despite some short-term dips, the company maintains healthy gross profits, which also suggests stable or improving operational efficiency to some extent.
- Gross Profit Margin
- The gross profit margin exhibits a declining trend from early 2020 through late 2022, starting near 60% and falling to approximately 50% during this interval. This downward movement suggests that the cost of goods sold increased at a faster rate than net sales, possibly due to higher input prices or changing product mix. However, from late 2022 through the first quarter of 2024, the gross profit margin shows a modest recovery, rising from around 50.3% to over 53%. This recovery indicates some improvement in cost management or pricing power, although the margin does not return to the historic highs observed at the start of the period.
In summary, the company has exhibited strong growth in net sales and gross profit over the analyzed quarters, reflecting expansion and increased revenue generation. The gross profit margin's initial decline suggests pressure on profitability due to cost factors, but the gradual margin improvement in the most recent quarters is a positive sign of regaining pricing strength or reducing costs relative to sales. Overall, the financial trends indicate resilience and continuous revenue growth with improving profitability metrics in the latest periods.
Operating Profit Margin
Monster Beverage Corp., operating profit margin 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) | |||||||||||||||||||||||
| Operating income | 541,991) | 433,959) | 510,527) | 523,805) | 485,064) | 394,351) | 417,930) | 372,951) | 399,489) | 412,882) | 444,464) | 525,975) | 414,146) | 402,300) | 458,601) | 407,264) | 364,988) | ||||||
| Net sales | 1,899,098) | 1,730,108) | 1,856,028) | 1,854,961) | 1,698,930) | 1,512,930) | 1,624,286) | 1,655,260) | 1,518,574) | 1,425,045) | 1,410,557) | 1,461,934) | 1,243,816) | 1,196,283) | 1,246,362) | 1,093,896) | 1,062,097) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Operating profit margin1 | 27.39% | 27.36% | 27.64% | 27.22% | 25.73% | 25.11% | 25.76% | 27.12% | 30.65% | 32.44% | 33.63% | 34.98% | 35.19% | 35.51% | 35.02% | 34.47% | 33.74% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||
| Coca-Cola Co. | 21.89% | 24.72% | 24.68% | 24.76% | 24.99% | 25.37% | 24.81% | 24.96% | 27.39% | 26.67% | 29.03% | 28.49% | 27.93% | — | — | — | — | ||||||
| Mondelēz International Inc. | 18.61% | 15.28% | 14.53% | 13.02% | 11.99% | 11.22% | 12.82% | 15.12% | 15.26% | 16.20% | 16.21% | 15.94% | 15.79% | — | — | — | — | ||||||
| PepsiCo Inc. | 13.14% | 13.10% | 12.14% | 11.60% | 10.08% | 13.33% | 15.85% | 15.96% | 17.46% | 14.04% | 14.90% | 15.12% | 14.68% | — | — | — | — | ||||||
| Philip Morris International Inc. | 33.02% | 32.85% | 33.81% | 33.73% | 36.46% | 38.56% | 38.69% | 40.11% | 40.64% | 41.32% | 42.07% | 42.31% | 42.31% | — | — | — | — | ||||||
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
Operating profit margin = 100
× (Operating incomeQ1 2024
+ Operating incomeQ4 2023
+ Operating incomeQ3 2023
+ Operating incomeQ2 2023)
÷ (Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023
+ Net salesQ2 2023)
= 100 × (541,991 + 433,959 + 510,527 + 523,805)
÷ (1,899,098 + 1,730,108 + 1,856,028 + 1,854,961)
= 27.39%
2 Click competitor name to see calculations.
- Net Sales
- Over the evaluated periods, net sales displayed a general upward trajectory. Beginning at approximately 1,062 million USD in the first quarter of 2020, sales increased gradually with some fluctuations, reaching close to 1,899 million USD by the first quarter of 2024. The highest spikes occurred in mid-2021 and 2023, with sales surpassing 1.8 billion USD. The data reflect overall growth in revenue, despite occasional periods of slight decline or plateau.
- Operating Income
- Operating income followed a less consistent pattern compared to net sales. Initial figures around 365 million USD at the start of 2020 showed growth into mid-2021, peaking near 526 million USD. Subsequently, there were declines and recoveries, with operating income fluctuating between approximately 394 million USD and 541 million USD from late 2021 through early 2024. The highest recorded operating income occurred in the first quarter of 2024, indicating a recovery after some volatility in preceding periods.
- Operating Profit Margin
- The operating profit margin exhibited a decreasing trend from early 2020 levels above 33% to a low around 25% during 2022. Margins were highest in early 2020 and began declining steadily through 2021 and 2022, hitting their lowest point by the end of 2022. Starting in 2023, there was a moderate recovery, with margins increasing to just above 27% by early 2024, though they did not return to the peak levels observed at the beginning of the period.
- Summary Insights
- While net sales demonstrated consistent growth over the analyzed timeframe, operating income and profit margins showed more variability. The decline in operating profit margin from 2020 to 2022 suggests increased costs or pricing pressures impacting profitability despite rising sales. The partial recovery in margins and operating income in 2023 and early 2024 may indicate improved operational efficiencies or shifts in cost structure. The data imply ongoing efforts to balance revenue growth with cost management in a competitive environment.
Net Profit Margin
Monster Beverage Corp., net profit margin 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) | |||||||||||||||||||||||
| Net income | 442,049) | 366,979) | 452,694) | 413,871) | 397,444) | 301,674) | 322,387) | 273,360) | 294,203) | 321,314) | 337,205) | 403,762) | 315,194) | 471,736) | 347,654) | 311,369) | 278,835) | ||||||
| Net sales | 1,899,098) | 1,730,108) | 1,856,028) | 1,854,961) | 1,698,930) | 1,512,930) | 1,624,286) | 1,655,260) | 1,518,574) | 1,425,045) | 1,410,557) | 1,461,934) | 1,243,816) | 1,196,283) | 1,246,362) | 1,093,896) | 1,062,097) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Net profit margin1 | 22.83% | 22.84% | 22.62% | 21.45% | 19.95% | 18.88% | 19.46% | 20.40% | 23.32% | 24.86% | 28.76% | 29.88% | 30.25% | 30.65% | 26.99% | 26.56% | 26.06% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||
| Coca-Cola Co. | 23.41% | 23.42% | 23.92% | 23.81% | 22.69% | 22.19% | 23.44% | 23.16% | 25.69% | 25.28% | 23.31% | 22.19% | 21.59% | — | — | — | — | ||||||
| Mondelēz International Inc. | 11.87% | 13.77% | 12.97% | 12.13% | 11.99% | 8.63% | 10.30% | 12.93% | 14.34% | 14.97% | 15.70% | 15.49% | 13.94% | — | — | — | — | ||||||
| PepsiCo Inc. | 10.00% | 9.92% | 9.05% | 8.76% | 7.48% | 10.31% | 11.61% | 11.28% | 12.57% | 9.59% | 10.62% | 11.01% | 10.51% | — | — | — | — | ||||||
| Philip Morris International Inc. | 22.16% | 22.21% | 23.38% | 24.26% | 27.20% | 28.49% | 27.57% | 28.56% | 28.58% | 29.00% | 29.25% | 29.51% | 29.69% | — | — | — | — | ||||||
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
Net profit margin = 100
× (Net incomeQ1 2024
+ Net incomeQ4 2023
+ Net incomeQ3 2023
+ Net incomeQ2 2023)
÷ (Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023
+ Net salesQ2 2023)
= 100 × (442,049 + 366,979 + 452,694 + 413,871)
÷ (1,899,098 + 1,730,108 + 1,856,028 + 1,854,961)
= 22.83%
2 Click competitor name to see calculations.
- Net Income
- The net income values exhibit variability over the reported periods, with a general upward trend from 2020 through 2023. Starting at 278,835 thousand USD in the first quarter of 2020, net income peaks at 471,736 thousand USD at the end of 2020. During 2021, the figures fluctuate with a high of 403,762 thousand USD in the second quarter but then decrease towards the end of the year. In 2022, net income declines further, reaching a low of 273,360 thousand USD in the second quarter, followed by a moderate recovery later that year. The data for 2023 show a more consistent increase in net income, culminating in a peak of 452,694 thousand USD in the third quarter before a decline in the final quarter and a slight recovery in the first quarter of 2024. Overall, net income demonstrates cyclical behavior with pronounced quarterly fluctuations but a tendency towards growth in recent quarters.
- Net Sales
- Net sales display a progressive upward trajectory across the quarters, rising from 1,062,097 thousand USD in Q1 2020 to 1,899,098 thousand USD by Q1 2024. The data show steady growth with occasional minor declines, such as a slight drop in the fourth quarter of 2022. Sales peaked multiple times, notably in the second and third quarters of 2023, exceeding 1.85 million thousand USD, before falling slightly in the last quarter of 2023 and then increasing again in Q1 2024. This pattern suggests that the revenue base is expanding consistently over time with periodic fluctuations typical of seasonal or market-driven influences.
- Net Profit Margin
- The net profit margin percentage demonstrates a declining trend over the analyzed period. Starting around 26% in early 2020, the margin increased briefly to approximately 30% by the end of 2020 but then experienced a steady decrease throughout 2021 and 2022. By the end of 2022, the margin reached its lowest point at approximately 18.88%. During 2023, there is evidence of improvement, with the margin increasing gradually to a range around 22.8% by early 2024. This decline followed by partial recovery suggests that while the company is generating higher sales and net income, it has faced pressure on profitability margins, potentially due to increased costs or pricing strategies, though these effects have somewhat moderated in recent periods.
- Overall Insights
- The company shows strong revenue growth over the five-year period analyzed, which is supported by increasing net income levels that, however, exhibit seasonal volatility. The profitability margin has experienced some compression, possibly reflecting cost pressures or changes in sales mix, but recent data suggest stabilization and signs of recovery. The combination of higher net sales and improving net income in recent quarters indicates a strengthening financial performance, although maintaining and enhancing profit margins could be an area of managerial focus going forward.
Return on Equity (ROE)
Monster Beverage Corp., ROE 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) | |||||||||||||||||||||||
| Net income | 442,049) | 366,979) | 452,694) | 413,871) | 397,444) | 301,674) | 322,387) | 273,360) | 294,203) | 321,314) | 337,205) | 403,762) | 315,194) | 471,736) | 347,654) | 311,369) | 278,835) | ||||||
| Stockholders’ equity | 8,577,789) | 8,228,744) | 7,873,149) | 7,841,464) | 7,395,360) | 7,025,041) | 6,815,760) | 6,809,178) | 6,866,672) | 6,566,951) | 6,244,997) | 5,905,498) | 5,459,437) | 5,160,860) | 4,629,321) | 4,221,540) | 3,870,946) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROE1 | 19.53% | 19.82% | 19.89% | 18.30% | 17.51% | 16.96% | 17.77% | 18.01% | 19.75% | 20.98% | 24.47% | 26.05% | 26.49% | 27.31% | 25.77% | 27.10% | 29.07% | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||
| Coca-Cola Co. | 40.80% | 41.30% | 40.92% | 40.40% | 39.13% | 39.59% | 43.52% | 41.60% | 41.49% | 42.48% | 39.74% | 36.31% | 35.46% | — | — | — | — | ||||||
| Mondelēz International Inc. | 15.06% | 17.50% | 16.09% | 14.45% | 13.97% | 10.11% | 11.78% | 14.04% | 14.89% | 15.21% | 16.08% | 15.66% | 13.96% | — | — | — | — | ||||||
| PepsiCo Inc. | 48.22% | 49.04% | 44.08% | 44.67% | 38.62% | 51.96% | 51.19% | 49.78% | 55.85% | 47.48% | 51.29% | 53.65% | 53.75% | — | — | — | — | ||||||
| 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).
1 Q1 2024 Calculation
ROE = 100
× (Net incomeQ1 2024
+ Net incomeQ4 2023
+ Net incomeQ3 2023
+ Net incomeQ2 2023)
÷ Stockholders’ equity
= 100 × (442,049 + 366,979 + 452,694 + 413,871)
÷ 8,577,789 = 19.53%
2 Click competitor name to see calculations.
The financial data exhibits several notable trends regarding profitability and equity performance over the period analyzed. The net income demonstrates variability across quarters, with peaks generally observed toward the end of each fiscal year. A significant peak occurred in December 2020, reaching 471,736 thousand US dollars, followed by a decline in the following quarters. Despite fluctuations, net income for the first quarter of 2024 rose again to 442,049 thousand US dollars, indicating renewed strength relative to the previous quarters.
Stockholders’ equity presents a consistent upward trajectory throughout the entire period. Starting from approximately 3,870,946 thousand US dollars in March 2020, equity steadily increased almost every quarter, reaching an approximate value of 8,577,789 thousand US dollars by March 2024. This steady growth suggests ongoing capital accumulation and reinvestment in the company’s operations.
The return on equity (ROE) shows a declining trend from early 2020 through 2022, moving from around 29.07% in March 2020 to a low near 16.96% in December 2022. This decline indicates that profitability relative to shareholders’ equity was decreasing during this timeframe. However, gradually after late 2022, the ROE began a recovery trend, rising to approximately 19.53% by March 2024. This recovery suggests an improvement in profit generation efficiency relative to the equity base.
- Net Income
- Fluctuated over the quarters with notable peaks in December fiscal quarters, highest in Q4 2020, followed by a decline and subsequent recovery into early 2024.
- Stockholders’ Equity
- Exhibited a steady increase across all periods, more than doubling from March 2020 to March 2024, indicating capital growth and financial strengthening.
- Return on Equity (ROE)
- Displayed a downward trend from early 2020 through late 2022, declining from about 29% to below 17%, before rebounding towards approximately 19.5% by early 2024, reflecting fluctuating profitability efficiency against equity.
Overall, the data suggests that while the company experienced challenges in maintaining its profitability efficiency relative to equity in the 2021-2022 period, its financial position remained strong with growing equity and a resurgence in net income and ROE in recent quarters.
Return on Assets (ROA)
Monster Beverage Corp., ROA 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) | |||||||||||||||||||||||
| Net income | 442,049) | 366,979) | 452,694) | 413,871) | 397,444) | 301,674) | 322,387) | 273,360) | 294,203) | 321,314) | 337,205) | 403,762) | 315,194) | 471,736) | 347,654) | 311,369) | 278,835) | ||||||
| Total assets | 10,098,066) | 9,686,522) | 9,314,338) | 9,263,338) | 8,844,362) | 8,293,105) | 8,204,805) | 8,175,012) | 8,187,459) | 7,804,784) | 7,449,408) | 7,071,543) | 6,534,366) | 6,202,716) | 5,697,683) | 5,193,813) | 4,881,497) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROA1 | 16.59% | 16.84% | 16.81% | 15.50% | 14.64% | 14.37% | 14.76% | 15.00% | 16.57% | 17.65% | 20.51% | 21.75% | 22.13% | 22.73% | 20.94% | 22.03% | 23.05% | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||
| Coca-Cola Co. | 10.85% | 10.97% | 11.04% | 10.67% | 10.13% | 10.29% | 10.73% | 10.27% | 10.96% | 10.36% | 9.73% | 8.96% | 8.02% | — | — | — | — | ||||||
| Mondelēz International Inc. | 5.53% | 6.95% | 6.48% | 5.75% | 5.42% | 3.82% | 4.61% | 5.85% | 6.17% | 6.41% | 6.61% | 6.49% | 5.70% | — | — | — | — | ||||||
| PepsiCo Inc. | 9.18% | 9.03% | 8.29% | 8.24% | 7.07% | 9.67% | 10.28% | 9.92% | 10.93% | 8.25% | 8.73% | 8.88% | 8.22% | — | — | — | — | ||||||
| Philip Morris International Inc. | 12.20% | 11.96% | 12.74% | 13.01% | 14.04% | 14.67% | 21.48% | 22.18% | 21.62% | 22.06% | 21.62% | 21.81% | 21.73% | — | — | — | — | ||||||
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
ROA = 100
× (Net incomeQ1 2024
+ Net incomeQ4 2023
+ Net incomeQ3 2023
+ Net incomeQ2 2023)
÷ Total assets
= 100 × (442,049 + 366,979 + 452,694 + 413,871)
÷ 10,098,066 = 16.59%
2 Click competitor name to see calculations.
The financial analysis over the most recent periods reveals several notable trends in key performance indicators.
- Net Income
- The net income demonstrates fluctuations across the quarters, showing periods of both growth and decline. Starting at a level of approximately 279 million US dollars in the first quarter of 2020, net income peaked significantly at over 471 million US dollars by the end of 2020. Following this peak, the net income experienced variability, including some declines and rebounds. Notably, after a dip in early 2022 to below 300 million US dollars, it rose steadily again, reaching highs around 453 million US dollars by late 2023. The most recent quarter shows a slight decrease but remains robust at approximately 442 million US dollars.
- Total Assets
- Total assets have exhibited consistent and steady growth throughout the observed quarters. Beginning at just under 4.9 billion US dollars in early 2020, total assets increased every quarter reaching over 10 billion US dollars by the first quarter of 2024. This steady asset accumulation is indicative of ongoing investment, expansion, or resource accumulation over time, contributing to a stronger asset base.
- Return on Assets (ROA)
- The ROA percentage shows a downward trend in the initial periods, dropping from 23.05% in early 2020 to a low around 14.37% by late 2022. This decline suggests a reduction in the efficiency of asset utilization to generate profit during that timeframe. However, following this trough, ROA begins to recover, increasing back up to approximately 16.8% by late 2023 and holding steady around 16.6% in the latest quarter. Although still below the early 2020 levels, this partial recovery in ROA may indicate improved operational efficiency or profitability relative to the asset base.
In summary, the company displays strong asset growth coupled with fluctuating but generally resilient net income. The temporary decline in ROA followed by a gradual improvement suggests some challenges in asset profitability that are being addressed. The overall financial situation appears stable, with significant growth in asset base and recent positive trends in earning efficiency.