Monster Beverage Corp., adjustment to net income

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income (as reported)	1,191,624)	1,377,475)	1,409,594)	1,107,835)	993,004)
Add: Net change in available-for-sale investments	(4,887)	(1,041)	(110)	283)	752)
Net income (adjusted)	1,186,737)	1,376,434)	1,409,484)	1,108,118)	993,756)

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Monster Beverage Corp., adjusted profitability ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net Profit Margin
Reported net profit margin	18.88%	24.86%	30.65%	26.37%	26.08%
Adjusted net profit margin	18.80%	24.84%	30.65%	26.38%	26.10%
Return on Equity (ROE)
Reported ROE	16.96%	20.98%	27.31%	26.56%	27.50%
Adjusted ROE	16.89%	20.96%	27.31%	26.57%	27.52%
Return on Assets (ROA)
Reported ROA	14.37%	17.65%	22.73%	21.51%	21.94%
Adjusted ROA	14.31%	17.64%	22.72%	21.52%	21.95%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Monster Beverage Corp. adjusted net profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Monster Beverage Corp. adjusted ROE deteriorated from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Monster Beverage Corp. adjusted ROA deteriorated from 2020 to 2021 and from 2021 to 2022.

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,191,624)	1,377,475)	1,409,594)	1,107,835)	993,004)
Net sales	6,311,050)	5,541,352)	4,598,638)	4,200,819)	3,807,183)
Profitability Ratio
Net profit margin¹	18.88%	24.86%	30.65%	26.37%	26.08%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	1,186,737)	1,376,434)	1,409,484)	1,108,118)	993,756)
Net sales	6,311,050)	5,541,352)	4,598,638)	4,200,819)	3,807,183)
Profitability Ratio
Adjusted net profit margin²	18.80%	24.84%	30.65%	26.38%	26.10%

2022 Calculations

¹ Net profit margin = 100 × Net income ÷ Net sales
= 100 × 1,191,624 ÷ 6,311,050 = 18.88%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Net sales
= 100 × 1,186,737 ÷ 6,311,050 = 18.80%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Monster Beverage Corp. adjusted net profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,191,624)	1,377,475)	1,409,594)	1,107,835)	993,004)
Stockholders’ equity	7,025,041)	6,566,951)	5,160,860)	4,171,281)	3,610,901)
Profitability Ratio
ROE¹	16.96%	20.98%	27.31%	26.56%	27.50%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	1,186,737)	1,376,434)	1,409,484)	1,108,118)	993,756)
Stockholders’ equity	7,025,041)	6,566,951)	5,160,860)	4,171,281)	3,610,901)
Profitability Ratio
Adjusted ROE²	16.89%	20.96%	27.31%	26.57%	27.52%

2022 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,191,624 ÷ 7,025,041 = 16.96%

² Adjusted ROE = 100 × Adjusted net income ÷ Stockholders’ equity
= 100 × 1,186,737 ÷ 7,025,041 = 16.89%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Monster Beverage Corp. adjusted ROE deteriorated from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,191,624)	1,377,475)	1,409,594)	1,107,835)	993,004)
Total assets	8,293,105)	7,804,784)	6,202,716)	5,150,352)	4,526,891)
Profitability Ratio
ROA¹	14.37%	17.65%	22.73%	21.51%	21.94%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	1,186,737)	1,376,434)	1,409,484)	1,108,118)	993,756)
Total assets	8,293,105)	7,804,784)	6,202,716)	5,150,352)	4,526,891)
Profitability Ratio
Adjusted ROA²	14.31%	17.64%	22.72%	21.52%	21.95%

2022 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 1,191,624 ÷ 8,293,105 = 14.37%

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 1,186,737 ÷ 8,293,105 = 14.31%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Monster Beverage Corp. adjusted ROA deteriorated from 2020 to 2021 and from 2021 to 2022.

Monster Beverage Corp. (NASDAQ:MNST)

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