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.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Monster Beverage Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Mar 31, 2024 19.53% = 16.59% × 1.18
Dec 31, 2023 19.82% = 16.84% × 1.18
Sep 30, 2023 19.89% = 16.81% × 1.18
Jun 30, 2023 18.30% = 15.50% × 1.18
Mar 31, 2023 17.51% = 14.64% × 1.20
Dec 31, 2022 16.96% = 14.37% × 1.18
Sep 30, 2022 17.77% = 14.76% × 1.20
Jun 30, 2022 18.01% = 15.00% × 1.20
Mar 31, 2022 19.75% = 16.57% × 1.19
Dec 31, 2021 20.98% = 17.65% × 1.19
Sep 30, 2021 24.47% = 20.51% × 1.19
Jun 30, 2021 26.05% = 21.75% × 1.20
Mar 31, 2021 26.49% = 22.13% × 1.20
Dec 31, 2020 27.31% = 22.73% × 1.20
Sep 30, 2020 25.77% = 20.94% × 1.23
Jun 30, 2020 27.10% = 22.03% × 1.23
Mar 31, 2020 29.07% = 23.05% × 1.26
Dec 31, 2019 26.56% = 21.51% × 1.23
Sep 30, 2019 — = — × 1.25
Jun 30, 2019 — = — × 1.25
Mar 31, 2019 — = — × 1.26

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 primary reason for the decrease in return on equity ratio (ROE) over Q1 2024 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Monster Beverage Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Mar 31, 2024 19.53% = 22.83% × 0.73 × 1.18
Dec 31, 2023 19.82% = 22.84% × 0.74 × 1.18
Sep 30, 2023 19.89% = 22.62% × 0.74 × 1.18
Jun 30, 2023 18.30% = 21.45% × 0.72 × 1.18
Mar 31, 2023 17.51% = 19.95% × 0.73 × 1.20
Dec 31, 2022 16.96% = 18.88% × 0.76 × 1.18
Sep 30, 2022 17.77% = 19.46% × 0.76 × 1.20
Jun 30, 2022 18.01% = 20.40% × 0.74 × 1.20
Mar 31, 2022 19.75% = 23.32% × 0.71 × 1.19
Dec 31, 2021 20.98% = 24.86% × 0.71 × 1.19
Sep 30, 2021 24.47% = 28.76% × 0.71 × 1.19
Jun 30, 2021 26.05% = 29.88% × 0.73 × 1.20
Mar 31, 2021 26.49% = 30.25% × 0.73 × 1.20
Dec 31, 2020 27.31% = 30.65% × 0.74 × 1.20
Sep 30, 2020 25.77% = 26.99% × 0.78 × 1.23
Jun 30, 2020 27.10% = 26.56% × 0.83 × 1.23
Mar 31, 2020 29.07% = 26.06% × 0.88 × 1.26
Dec 31, 2019 26.56% = 26.37% × 0.82 × 1.23
Sep 30, 2019 — = — × — × 1.25
Jun 30, 2019 — = — × — × 1.25
Mar 31, 2019 — = — × — × 1.26

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 primary reason for the decrease in return on equity ratio (ROE) over Q1 2024 is the decrease in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

Monster Beverage Corp., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Mar 31, 2024 16.59% = 22.83% × 0.73
Dec 31, 2023 16.84% = 22.84% × 0.74
Sep 30, 2023 16.81% = 22.62% × 0.74
Jun 30, 2023 15.50% = 21.45% × 0.72
Mar 31, 2023 14.64% = 19.95% × 0.73
Dec 31, 2022 14.37% = 18.88% × 0.76
Sep 30, 2022 14.76% = 19.46% × 0.76
Jun 30, 2022 15.00% = 20.40% × 0.74
Mar 31, 2022 16.57% = 23.32% × 0.71
Dec 31, 2021 17.65% = 24.86% × 0.71
Sep 30, 2021 20.51% = 28.76% × 0.71
Jun 30, 2021 21.75% = 29.88% × 0.73
Mar 31, 2021 22.13% = 30.25% × 0.73
Dec 31, 2020 22.73% = 30.65% × 0.74
Sep 30, 2020 20.94% = 26.99% × 0.78
Jun 30, 2020 22.03% = 26.56% × 0.83
Mar 31, 2020 23.05% = 26.06% × 0.88
Dec 31, 2019 21.51% = 26.37% × 0.82
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

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 primary reason for the decrease in return on assets ratio (ROA) over Q1 2024 is the decrease in asset turnover ratio.