Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Monster Beverage Corp., income tax expense (benefit), continuing operations

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Federal	259,911)	247,482)	273,115)	259,073)	212,068)
State	47,079)	47,255)	44,990)	43,704)	39,982)
Foreign	99,563)	37,421)	89,410)	70,658)	55,167)
Current	406,553)	332,158)	407,515)	373,435)	307,217)
Federal	42,237)	19,111)	14,750)	11,401)	8,320)
State	2,376)	258)	4,689)	4,709)	(6,878)
Foreign	(13,936)	26,084)	5,092)	(167,595)	(4,219)
Deferred	30,677)	45,453)	24,531)	(151,485)	(2,777)
Valuation allowance	264)	2,729)	(8,102)	(5,387)	3,687)
Provision for income taxes	437,494)	380,340)	423,944)	216,563)	308,127)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Monster Beverage Corp. current decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Monster Beverage Corp. deferred increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
Provision for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Monster Beverage Corp. provision for income taxes decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Monster Beverage Corp., effective income tax rate (EITR) reconciliation

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
	U.S. federal statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
	Effective income tax rate	21.15%	24.20%	23.53%	13.32%	21.76%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Monster Beverage Corp. effective income tax rate increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Monster Beverage Corp., components of deferred tax assets and liabilities

US$ in thousands

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Reserve for sales returns	1,438)	2,262)	889)	275)	140)
Reserve for inventory obsolescence	4,022)	4,651)	3,643)	2,366)	2,066)
Reserve for marketing development fund	8,358)	7,487)	8,951)	9,629)	8,469)
Capitalization of inventory costs	12,159)	6,537)	2,533)	3,365)	2,310)
State franchise tax, current	2,511)	2,339)	2,493)	4,229)	2,346)
Accrued compensation	12,413)	10,499)	2,854)	1,284)	1,944)
Accrued other liabilities	1,729)	1,820)	4,634)	7,464)	5,674)
Deferred revenue	58,156)	63,196)	68,557)	75,592)	81,903)
Stock-based compensation	19,093)	25,526)	24,635)	23,370)	22,665)
Foreign net operating loss carryforward	27,000)	19,896)	14,507)	21,626)	30,187)
Prepaid supplies	10,567)	7,901)	6,317)	5,551)	5,799)
Termination payments	46,810)	52,466)	58,042)	63,009)	69,467)
Operating lease liabilities	5,739)	5,739)	4,711)	4,434)	6,155)
Intangibles	30,952)	33,603)	72,666)	87,687)	—)
Impairment-trademarks and others	12,715)	2,567)	2,047)	2,055)	—)
Other deferred tax assets	64,955)	33,209)	33,013)	27,164)	17,615)
Gross deferred tax assets	318,617)	279,698)	310,492)	339,100)	256,740)
Valuation allowance	(30,007)	(29,742)	(27,013)	(35,116)	(40,503)
Net deferred tax assets	288,610)	249,956)	283,479)	303,984)	216,237)
Amortization of trademarks	(76,536)	(39,237)	(41,517)	(42,161)	(35,227)
Intangibles	—)	—)	—)	—)	(76,047)
State franchise tax, deferred	(5,038)	(5,503)	(5,505)	(6,318)	(7,173)
Operating lease ROU assets	(5,739)	(5,739)	(4,711)	(4,434)	(6,155)
Bang transaction gain	(10,698)	—)	—)	—)	—)
Other deferred tax liabilities	(8,784)	(5)	(618)	(58)	(93)
Depreciation	(35,708)	(22,433)	(5,907)	(9,363)	(6,765)
Gross deferred tax liabilities	(142,503)	(72,917)	(58,258)	(62,334)	(131,460)
Net deferred tax assets (liabilities)	146,107)	177,039)	225,221)	241,650)	84,777)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Gross deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Monster Beverage Corp. gross deferred tax assets decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Net deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Monster Beverage Corp. net deferred tax assets decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Monster Beverage Corp. net deferred tax assets (liabilities) decreased from 2021 to 2022 and from 2022 to 2023.

Monster Beverage Corp., deferred tax assets and liabilities, classification

US$ in thousands

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
	Deferred tax assets	175,003)	177,039)	225,221)	241,650)	84,777)
	Deferred tax liabilities	28,896)	—)	—)	—)	—)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Monster Beverage Corp. deferred tax assets decreased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.

Monster Beverage Corp., adjustments to financial statements

US$ in thousands

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	9,686,522)	8,293,105)	7,804,784)	6,202,716)	5,150,352)
Less: Noncurrent deferred tax assets, net	175,003)	177,039)	225,221)	241,650)	84,777)
Total assets (adjusted)	9,511,519)	8,116,066)	7,579,563)	5,961,066)	5,065,575)
Adjustment to Total Liabilities
Total liabilities (as reported)	1,457,778)	1,268,064)	1,237,833)	1,041,856)	979,071)
Less: Noncurrent deferred tax liabilities, net	28,896)	—)	—)	—)	—)
Total liabilities (adjusted)	1,428,882)	1,268,064)	1,237,833)	1,041,856)	979,071)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	8,228,744)	7,025,041)	6,566,951)	5,160,860)	4,171,281)
Less: Net deferred tax assets (liabilities)	146,107)	177,039)	225,221)	241,650)	84,777)
Stockholders’ equity (adjusted)	8,082,637)	6,848,002)	6,341,730)	4,919,210)	4,086,504)
Adjustment to Net Income
Net income (as reported)	1,630,988)	1,191,624)	1,377,475)	1,409,594)	1,107,835)
Add: Deferred income tax expense (benefit)	30,677)	45,453)	24,531)	(151,485)	(2,777)
Net income (adjusted)	1,661,665)	1,237,077)	1,402,006)	1,258,109)	1,105,058)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Monster Beverage Corp., Financial Data: Reported vs. Adjusted

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Monster Beverage Corp., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	22.84%	18.88%	24.86%	30.65%	26.37%
Adjusted net profit margin	23.27%	19.60%	25.30%	27.36%	26.31%
Total Asset Turnover
Reported total asset turnover	0.74	0.76	0.71	0.74	0.82
Adjusted total asset turnover	0.75	0.78	0.73	0.77	0.83
Financial Leverage
Reported financial leverage	1.18	1.18	1.19	1.20	1.23
Adjusted financial leverage	1.18	1.19	1.20	1.21	1.24
Return on Equity (ROE)
Reported ROE	19.82%	16.96%	20.98%	27.31%	26.56%
Adjusted ROE	20.56%	18.06%	22.11%	25.58%	27.04%
Return on Assets (ROA)
Reported ROA	16.84%	14.37%	17.65%	22.73%	21.51%
Adjusted ROA	17.47%	15.24%	18.50%	21.11%	21.82%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Monster Beverage Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Monster Beverage Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Monster Beverage Corp. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Monster Beverage Corp. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Monster Beverage Corp. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Monster Beverage Corp., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,630,988)	1,191,624)	1,377,475)	1,409,594)	1,107,835)
Net sales	7,140,027)	6,311,050)	5,541,352)	4,598,638)	4,200,819)
Profitability Ratio
Net profit margin¹	22.84%	18.88%	24.86%	30.65%	26.37%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	1,661,665)	1,237,077)	1,402,006)	1,258,109)	1,105,058)
Net sales	7,140,027)	6,311,050)	5,541,352)	4,598,638)	4,200,819)
Profitability Ratio
Adjusted net profit margin²	23.27%	19.60%	25.30%	27.36%	26.31%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Net sales
= 100 × 1,630,988 ÷ 7,140,027 = 22.84%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Net sales
= 100 × 1,661,665 ÷ 7,140,027 = 23.27%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Monster Beverage Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net sales	7,140,027)	6,311,050)	5,541,352)	4,598,638)	4,200,819)
Total assets	9,686,522)	8,293,105)	7,804,784)	6,202,716)	5,150,352)
Activity Ratio
Total asset turnover¹	0.74	0.76	0.71	0.74	0.82
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Net sales	7,140,027)	6,311,050)	5,541,352)	4,598,638)	4,200,819)
Adjusted total assets	9,511,519)	8,116,066)	7,579,563)	5,961,066)	5,065,575)
Activity Ratio
Adjusted total asset turnover²	0.75	0.78	0.73	0.77	0.83

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 7,140,027 ÷ 9,686,522 = 0.74

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 7,140,027 ÷ 9,511,519 = 0.75

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Monster Beverage Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Total assets	9,686,522)	8,293,105)	7,804,784)	6,202,716)	5,150,352)
Stockholders’ equity	8,228,744)	7,025,041)	6,566,951)	5,160,860)	4,171,281)
Solvency Ratio
Financial leverage¹	1.18	1.18	1.19	1.20	1.23
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets	9,511,519)	8,116,066)	7,579,563)	5,961,066)	5,065,575)
Adjusted stockholders’ equity	8,082,637)	6,848,002)	6,341,730)	4,919,210)	4,086,504)
Solvency Ratio
Adjusted financial leverage²	1.18	1.19	1.20	1.21	1.24

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 9,686,522 ÷ 8,228,744 = 1.18

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 9,511,519 ÷ 8,082,637 = 1.18

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Monster Beverage Corp. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,630,988)	1,191,624)	1,377,475)	1,409,594)	1,107,835)
Stockholders’ equity	8,228,744)	7,025,041)	6,566,951)	5,160,860)	4,171,281)
Profitability Ratio
ROE¹	19.82%	16.96%	20.98%	27.31%	26.56%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	1,661,665)	1,237,077)	1,402,006)	1,258,109)	1,105,058)
Adjusted stockholders’ equity	8,082,637)	6,848,002)	6,341,730)	4,919,210)	4,086,504)
Profitability Ratio
Adjusted ROE²	20.56%	18.06%	22.11%	25.58%	27.04%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,630,988 ÷ 8,228,744 = 19.82%

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 1,661,665 ÷ 8,082,637 = 20.56%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Monster Beverage Corp. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,630,988)	1,191,624)	1,377,475)	1,409,594)	1,107,835)
Total assets	9,686,522)	8,293,105)	7,804,784)	6,202,716)	5,150,352)
Profitability Ratio
ROA¹	16.84%	14.37%	17.65%	22.73%	21.51%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	1,661,665)	1,237,077)	1,402,006)	1,258,109)	1,105,058)
Adjusted total assets	9,511,519)	8,116,066)	7,579,563)	5,961,066)	5,065,575)
Profitability Ratio
Adjusted ROA²	17.47%	15.24%	18.50%	21.11%	21.82%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 1,630,988 ÷ 9,686,522 = 16.84%

² Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 1,661,665 ÷ 9,511,519 = 17.47%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Monster Beverage Corp. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Monster Beverage Corp. (NASDAQ:MNST)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Monster Beverage Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Monster Beverage Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)