Stock Analysis on Net
Stock Analysis on Net

Monster Beverage Corp. (NASDAQ:MNST)

This company has been moved to the archive! The financial data has not been updated since May 7, 2024.

Common-Size Income Statement 

Monster Beverage Corp., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net sales 100.00 100.00 100.00 100.00 100.00
Cost of sales -46.86 -49.70 -43.90 -40.77 -40.05
Gross profit 53.14% 50.30% 56.10% 59.23% 59.95%
Operating expenses -25.78 -25.19 -23.66 -23.72 -26.56
Operating income 27.36% 25.11% 32.44% 35.51% 33.40%
Interest on finance lease liabilities 0.00 0.00 0.00 0.00 0.00
Other income (expense), net 1.62 -0.20 0.07 -0.15 0.31
Income before provision for income taxes 28.97% 24.91% 32.51% 35.36% 33.71%
Provision for income taxes -6.13 -6.03 -7.65 -4.71 -7.33
Net income 22.84% 18.88% 24.86% 30.65% 26.37%

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).

Cost of Sales
There is a noticeable increase in the cost of sales as a percentage of net sales, rising from -40.05% in 2019 to a peak of -49.7% in 2022, followed by a slight improvement to -46.86% in 2023. This trend suggests increasing production or procurement costs relative to sales over the analyzed period, with a partial reduction in the most recent year.
Gross Profit
Gross profit as a percentage of net sales declines consistently from 59.95% in 2019 to 50.3% in 2022, before recovering modestly to 53.14% in 2023. This decline aligns with the increase in cost of sales, indicating margin compression but with some recovery towards the end of the period.
Operating Expenses
Operating expenses as a percentage of net sales have remained relatively stable, fluctuating slightly between -23.66% and -26.56% over the five years. The lowest point was in 2021 at -23.66%, increasing marginally thereafter, showing consistent cost management within the operating expenses category.
Operating Income
Operating income as a percentage of net sales started at 33.4% in 2019 and increased to a peak of 35.51% in 2020. This was followed by a downward trend, falling to 25.11% in 2022 before a slight uptick to 27.36% in 2023. The reduction reflects the impact of increased cost of sales and steady operating expenses reducing profitability at the operating level.
Other Income (Expense), Net
This item showed minor fluctuations around zero in most years, with a slight net expense in 2020 and 2022, but a notable positive change to 1.62% of net sales in 2023. The increased other income in 2023 contributed positively to the overall income before taxes.
Income Before Provision for Income Taxes
Following a pattern similar to operating income, income before taxes increased from 33.71% in 2019 to 35.36% in 2020, dipped to 24.91% in 2022, then rose again to 28.97% in 2023. This shows the tax effects aside, the pre-tax profitability mirrors operational profitability trends.
Provision for Income Taxes
The effective tax provision as a percentage of net sales exhibited variability, declining from -7.33% in 2019 to a low of -4.71% in 2020, rising again to around -7.65% in 2021, and then stabilizing near -6.1% in 2022 and 2023. This suggests some fluctuation in tax expense relative to income, but generally maintains a moderate tax rate.
Net Income
Net income as a percentage of net sales increased notably from 26.37% in 2019 to 30.65% in 2020, then experienced a downturn to 18.88% in 2022, before recovering to 22.84% in 2023. This pattern indicates strong profitability in earlier years, a significant dip potentially due to rising costs in 2021 and 2022, and a partial rebound in the latest year.