Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Monster Beverage Corp., solvency ratios
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).
- Debt Ratios
- The data shows consistently negligible debt levels throughout the observed period. The debt to equity, debt to capital, and debt to assets ratios remain at or very near zero from 2019 through 2023. When including operating lease liabilities, slight fluctuations occur with ratios ranging from 0 to 0.01, indicating minimal liabilities related to leases. Overall, the company maintains an exceptionally low leverage position with almost no traditional debt reported.
- Financial Leverage
- Financial leverage ratios demonstrate a gradual decline from 1.23 in 2019 to 1.18 by 2023. This trend suggests a modest reduction in the use of equity-based financial leverage, indicating a stable or slightly improving equity position relative to the company's assets.
- Interest Coverage
- Interest coverage ratios are exceptionally high across all years, starting at 25,286 times in 2019 and peaking at 94,812 times in 2021 before dropping to 8,113 times in 2023. Despite the marked decrease in 2023, the ratio remains at a very robust level, signifying the company’s strong ability to meet interest obligations comfortably. The high values correspond with the near absence of debt liabilities.
- Fixed Charge Coverage
- Fixed charge coverage ratios show a peak at 389.82 in 2021, followed by a significant decrease in 2022 and 2023 to 182.42 and 168.96 respectively. While these represent a decline, the ratios remain considerably high, underscoring the company’s strong capacity to cover fixed charges including interest and lease payments.
- Summary
- The financial data indicates a company with an extremely conservative debt profile and very strong coverage metrics. Minimal reliance on debt financing and high interest and fixed charge coverage ratios reflect a solid financial position and low financial risk. The slight downward trend in leverage and coverage ratios in recent years suggests increased expenses or changes in operating conditions but does not impair overall financial strength.
Debt Ratios
Coverage Ratios
Debt to Equity
Monster Beverage Corp., debt to equity calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current finance lease liabilities | 6,449) | 757) | 960) | 799) | 1,485) | |
| Noncurrent finance lease liabilities | 19) | 41) | 41) | 24) | —) | |
| Total debt | 6,468) | 798) | 1,001) | 823) | 1,485) | |
| Stockholders’ equity | 8,228,744) | 7,025,041) | 6,566,951) | 5,160,860) | 4,171,281) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Coca-Cola Co. | 1.62 | 1.62 | 1.86 | 2.22 | — | |
| Mondelēz International Inc. | 0.69 | 0.85 | 0.69 | 0.73 | — | |
| PepsiCo Inc. | 2.38 | 2.28 | 2.51 | 3.28 | — | |
| Philip Morris International Inc. | — | — | — | — | — | |
| Debt to Equity, Sector | ||||||
| Food, Beverage & Tobacco | 2.49 | 2.44 | 2.28 | 2.90 | — | |
| Debt to Equity, Industry | ||||||
| Consumer Staples | 1.16 | 1.08 | 1.07 | 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).
1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 6,468 ÷ 8,228,744 = 0.00
2 Click competitor name to see calculations.
The financial data reveals notable trends in the company's capital structure over the five-year period ending December 31, 2023. Total debt remained relatively low and stable from 2019 through 2022, with figures fluctuating modestly between US$ 798 thousand and US$ 1,485 thousand. However, in 2023, there is a significant increase in total debt, rising sharply to US$ 6,468 thousand, representing more than a six-fold increase compared to the previous year.
In contrast, stockholders’ equity has shown consistent growth throughout the entire period. Starting from approximately US$ 4.17 billion in 2019, equity increased steadily each year to reach approximately US$ 8.23 billion by the end of 2023. This trend indicates a continuous strengthening of the company’s equity base, likely reflecting retained earnings accumulation and possible equity issuances.
Despite the sharp increase in debt in 2023, the debt to equity ratio remains reported as zero, suggesting either that the debt amount is still relatively negligible compared to the very large equity or that the ratio calculation method may be excluding certain liabilities. This indicates an exceptionally strong equity position relative to debt, maintaining the company’s low leverage profile.
- Total debt
- Remained consistently low from 2019 to 2022 with minor fluctuations; surged significantly in 2023.
- Stockholders’ equity
- Exhibited steady, substantial growth every year, nearly doubling over the five-year span.
- Debt to equity ratio
- Maintained at zero across all years, indicating minimal leverage relative to equity despite the debt increase in 2023.
Debt to Equity (including Operating Lease Liability)
Monster Beverage Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current finance lease liabilities | 6,449) | 757) | 960) | 799) | 1,485) | |
| Noncurrent finance lease liabilities | 19) | 41) | 41) | 24) | —) | |
| Total debt | 6,468) | 798) | 1,001) | 823) | 1,485) | |
| Operating lease liabilities (included in Accrued liabilities) | 11,088) | 7,747) | 3,990) | 3,171) | 2,812) | |
| Operating lease liabilities (included in Other liabilities) | 48,459) | 29,586) | 17,389) | 17,342) | 25,651) | |
| Total debt (including operating lease liability) | 66,015) | 38,131) | 22,380) | 21,336) | 29,948) | |
| Stockholders’ equity | 8,228,744) | 7,025,041) | 6,566,951) | 5,160,860) | 4,171,281) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.01 | 0.01 | 0.00 | 0.00 | 0.01 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Coca-Cola Co. | 1.67 | 1.68 | 1.92 | 2.30 | — | |
| Mondelēz International Inc. | 0.71 | 0.88 | 0.71 | 0.75 | — | |
| PepsiCo Inc. | 2.54 | 2.42 | 2.64 | 3.41 | — | |
| Philip Morris International Inc. | — | — | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Food, Beverage & Tobacco | 2.59 | 2.53 | 2.36 | 3.00 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Consumer Staples | 1.28 | 1.20 | 1.19 | 1.39 | — | |
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).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 66,015 ÷ 8,228,744 = 0.01
2 Click competitor name to see calculations.
- Debt Levels
- The total debt, including operating lease liability, exhibited variability over the five-year period. Initially, the amount decreased from approximately 29,948 thousand US dollars in 2019 to 21,336 thousand US dollars in 2020. It then experienced a slight increase to 22,380 thousand US dollars in 2021. Subsequently, a notable rise occurred, with total debt increasing to 38,131 thousand US dollars in 2022 and further escalating significantly to 66,015 thousand US dollars by 2023.
- Stockholders’ Equity
- Stockholders’ equity demonstrated a consistent upward trend throughout the period. Starting at approximately 4,171,281 thousand US dollars in 2019, it grew steadily each year, reaching 5,160,860 thousand in 2020 and 6,566,951 thousand in 2021. This positive trajectory continued with equity increasing to 7,025,041 thousand in 2022 and peaking at 8,228,744 thousand US dollars by the end of 2023.
- Debt to Equity Ratio
- The debt to equity ratio remained very low across the entire period, oscillating between 0 and 0.01. Despite the increases in total debt in 2022 and 2023, the ratio did not significantly rise, indicating that the growth in equity outpaced that of debt. This suggests a strong equity base relative to debt, maintaining a conservative leverage position.
- Overall Financial Position
- The data reveals a financially robust position characterized by a low debt-to-equity ratio and substantial growth in stockholders’ equity. While total debt increased notably in the later years, particularly from 2021 to 2023, it remains minimal relative to equity. This pattern suggests prudent financial management with significant emphasis on strengthening equity while managing modest debt levels.
Debt to Capital
Monster Beverage Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current finance lease liabilities | 6,449) | 757) | 960) | 799) | 1,485) | |
| Noncurrent finance lease liabilities | 19) | 41) | 41) | 24) | —) | |
| Total debt | 6,468) | 798) | 1,001) | 823) | 1,485) | |
| Stockholders’ equity | 8,228,744) | 7,025,041) | 6,566,951) | 5,160,860) | 4,171,281) | |
| Total capital | 8,235,212) | 7,025,839) | 6,567,952) | 5,161,683) | 4,172,766) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Coca-Cola Co. | 0.62 | 0.62 | 0.65 | 0.69 | — | |
| Mondelēz International Inc. | 0.41 | 0.46 | 0.41 | 0.42 | — | |
| PepsiCo Inc. | 0.70 | 0.69 | 0.72 | 0.77 | — | |
| Philip Morris International Inc. | 1.31 | 1.26 | 1.57 | 1.66 | — | |
| Debt to Capital, Sector | ||||||
| Food, Beverage & Tobacco | 0.71 | 0.71 | 0.70 | 0.74 | — | |
| Debt to Capital, Industry | ||||||
| Consumer Staples | 0.54 | 0.52 | 0.52 | 0.55 | — | |
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).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 6,468 ÷ 8,235,212 = 0.00
2 Click competitor name to see calculations.
- Total Debt
- Over the observed period, total debt showed a general low level from 2019 through 2022, fluctuating between 798 and 1,485 thousand US dollars. However, in 2023, there was a substantial increase in total debt, rising sharply to 6,468 thousand US dollars. This indicates a major change in the company's leverage position in the most recent year.
- Total Capital
- Total capital exhibited consistent growth throughout the period, increasing steadily from approximately 4.17 billion US dollars at the end of 2019 to over 8.23 billion US dollars by the end of 2023. This represents nearly a doubling of total capital over five years, reflecting ongoing expansion or accumulation of equity and debt financing.
- Debt to Capital Ratio
- The debt to capital ratio is reported as zero across all years despite the presence of total debt. This suggests that either the recorded debt amounts are not significant relative to total capital or there may be rounding or reporting conventions that impact this ratio’s calculation. Given the sharp rise in total debt in 2023, one might expect some increase in the ratio, which remains at zero, indicating a possible data anomaly or threshold effect in reporting.
Debt to Capital (including Operating Lease Liability)
Monster Beverage Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current finance lease liabilities | 6,449) | 757) | 960) | 799) | 1,485) | |
| Noncurrent finance lease liabilities | 19) | 41) | 41) | 24) | —) | |
| Total debt | 6,468) | 798) | 1,001) | 823) | 1,485) | |
| Operating lease liabilities (included in Accrued liabilities) | 11,088) | 7,747) | 3,990) | 3,171) | 2,812) | |
| Operating lease liabilities (included in Other liabilities) | 48,459) | 29,586) | 17,389) | 17,342) | 25,651) | |
| Total debt (including operating lease liability) | 66,015) | 38,131) | 22,380) | 21,336) | 29,948) | |
| Stockholders’ equity | 8,228,744) | 7,025,041) | 6,566,951) | 5,160,860) | 4,171,281) | |
| Total capital (including operating lease liability) | 8,294,759) | 7,063,172) | 6,589,331) | 5,182,196) | 4,201,229) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.01 | 0.01 | 0.00 | 0.00 | 0.01 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Coca-Cola Co. | 0.63 | 0.63 | 0.66 | 0.70 | — | |
| Mondelēz International Inc. | 0.42 | 0.47 | 0.42 | 0.43 | — | |
| PepsiCo Inc. | 0.72 | 0.71 | 0.73 | 0.77 | — | |
| Philip Morris International Inc. | 1.30 | 1.26 | 1.55 | 1.64 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Food, Beverage & Tobacco | 0.72 | 0.72 | 0.70 | 0.75 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Consumer Staples | 0.56 | 0.54 | 0.54 | 0.58 | — | |
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).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 66,015 ÷ 8,294,759 = 0.01
2 Click competitor name to see calculations.
The financial data reveals notable trends in the company's debt and capital structure over a five-year period.
- Total Debt (including operating lease liability)
- The total debt exhibits fluctuations with an initial decrease from 29,948 thousand USD in 2019 to 21,336 thousand USD in 2020, followed by a slight increase to 22,380 thousand USD in 2021. Subsequently, the total debt rises significantly to 38,131 thousand USD in 2022 and further escalates to 66,015 thousand USD in 2023. This pattern suggests a strengthening reliance on debt financing in the most recent years despite the overall low level relative to capital.
- Total Capital (including operating lease liability)
- Total capital demonstrates a consistent and strong upward trajectory throughout the five-year span. Beginning at approximately 4,201,229 thousand USD in 2019, it increases to over 5,182,196 thousand USD in 2020, then rises further to 6,589,331 thousand USD in 2021. Growth continues in 2022 and 2023, reaching 7,063,172 thousand USD and 8,294,759 thousand USD, respectively. This steady expansion indicates significant augmentation in the company's overall financing base and resources.
- Debt to Capital Ratio (including operating lease liability)
- The debt to capital ratio remains very low and relatively stable, fluctuating minimally around 0.01 or zero. Despite the noticeable rise in total debt in the later years, the proportion of debt relative to total capital remains marginal, implying that the company's capital structure is predominantly composed of equity or other non-debt financing sources. The ratio's persistently low level underscores a conservative approach to leverage.
Debt to Assets
Monster Beverage Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current finance lease liabilities | 6,449) | 757) | 960) | 799) | 1,485) | |
| Noncurrent finance lease liabilities | 19) | 41) | 41) | 24) | —) | |
| Total debt | 6,468) | 798) | 1,001) | 823) | 1,485) | |
| Total assets | 9,686,522) | 8,293,105) | 7,804,784) | 6,202,716) | 5,150,352) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Coca-Cola Co. | 0.43 | 0.42 | 0.45 | 0.49 | — | |
| Mondelēz International Inc. | 0.27 | 0.32 | 0.29 | 0.30 | — | |
| PepsiCo Inc. | 0.44 | 0.42 | 0.44 | 0.48 | — | |
| Philip Morris International Inc. | 0.73 | 0.70 | 0.67 | 0.70 | — | |
| Debt to Assets, Sector | ||||||
| Food, Beverage & Tobacco | 0.46 | 0.45 | 0.44 | 0.47 | — | |
| Debt to Assets, Industry | ||||||
| Consumer Staples | 0.31 | 0.30 | 0.30 | 0.33 | — | |
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).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 6,468 ÷ 9,686,522 = 0.00
2 Click competitor name to see calculations.
- Total Debt
- The total debt experienced fluctuations over the observed periods. Initially, there was a decrease from 1,485 thousand USD in 2019 to 823 thousand USD in 2020, followed by a slight increase to 1,001 thousand USD in 2021. In 2022, total debt declined again to 798 thousand USD. However, a substantial rise occurred in 2023, with the value reaching 6,468 thousand USD, significantly higher than all previous years.
- Total Assets
- Total assets demonstrated a consistent upward trend across the years. Starting at approximately 5,150,352 thousand USD in 2019, assets increased each year, reaching 6,202,716 thousand USD in 2020, 7,804,784 thousand USD in 2021, 8,293,105 thousand USD in 2022, and finally 9,686,522 thousand USD in 2023. This indicates ongoing asset growth, suggesting expansion or accumulation of resources.
- Debt to Assets Ratio
- The debt to assets ratio is reported as zero across all periods. Given the presence of non-zero values for total debt and total assets, this may indicate either a rounding effect, data anomaly, or a specific accounting treatment that negates the ratio. The ratio does not provide meaningful insight into leverage trends based on the available data.
Debt to Assets (including Operating Lease Liability)
Monster Beverage Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current finance lease liabilities | 6,449) | 757) | 960) | 799) | 1,485) | |
| Noncurrent finance lease liabilities | 19) | 41) | 41) | 24) | —) | |
| Total debt | 6,468) | 798) | 1,001) | 823) | 1,485) | |
| Operating lease liabilities (included in Accrued liabilities) | 11,088) | 7,747) | 3,990) | 3,171) | 2,812) | |
| Operating lease liabilities (included in Other liabilities) | 48,459) | 29,586) | 17,389) | 17,342) | 25,651) | |
| Total debt (including operating lease liability) | 66,015) | 38,131) | 22,380) | 21,336) | 29,948) | |
| Total assets | 9,686,522) | 8,293,105) | 7,804,784) | 6,202,716) | 5,150,352) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.01 | 0.00 | 0.00 | 0.00 | 0.01 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Coca-Cola Co. | 0.44 | 0.44 | 0.47 | 0.51 | — | |
| Mondelēz International Inc. | 0.28 | 0.33 | 0.30 | 0.31 | — | |
| PepsiCo Inc. | 0.47 | 0.45 | 0.46 | 0.49 | — | |
| Philip Morris International Inc. | 0.74 | 0.71 | 0.69 | 0.72 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Food, Beverage & Tobacco | 0.48 | 0.47 | 0.46 | 0.49 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Consumer Staples | 0.34 | 0.33 | 0.33 | 0.37 | — | |
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).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 66,015 ÷ 9,686,522 = 0.01
2 Click competitor name to see calculations.
The financial data exhibits a progression over a five-year period from December 31, 2019, through December 31, 2023. Several key indicators highlight trends in the company's leverage and asset base.
- Total Debt (Including Operating Lease Liability)
- The total debt demonstrates a fluctuating but ultimately increasing trajectory. Starting at $29,948 thousand at the end of 2019, total debt decreased to $21,336 thousand by the end of 2020, followed by a slight increase to $22,380 thousand in 2021. Subsequently, there was a marked rise to $38,131 thousand in 2022, with a further substantial increase to $66,015 thousand by the end of 2023. This indicates a significant growth in indebtedness, particularly over the last two years.
- Total Assets
- Total assets consistently rose throughout the period, reflecting a solid expansion of the company's asset base. The value increased steadily from $5,150,352 thousand at the end of 2019 to $6,202,716 thousand in 2020, followed by further growth to $7,804,784 thousand in 2021. This upward trend continued, reaching $8,293,105 thousand in 2022 and peaking at $9,686,522 thousand by the end of 2023. The pattern suggests ongoing investment and asset accumulation over the five years.
- Debt to Assets Ratio (Including Operating Lease Liability)
- The debt to assets ratio remained relatively stable and low throughout the period, hovering around zero to 0.01. Despite the increases in total debt and total assets, the company maintained a low leverage position, with the ratio consistently at or near 0 until a minor increase to 0.01 in 2023. This suggests prudent management of debt relative to the growth in assets, indicating a conservative balance between the use of debt financing and asset growth.
Overall, the data reveals steady asset growth accompanied by a controlled leverage profile, although recent years show a more noticeable increase in total debt. The low and stable debt to assets ratio points to maintained financial stability despite the expanded debt levels.
Financial Leverage
Monster Beverage Corp., financial leverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Coca-Cola Co. | 3.77 | 3.85 | 4.10 | 4.52 | — | |
| Mondelēz International Inc. | 2.52 | 2.65 | 2.37 | 2.46 | — | |
| PepsiCo Inc. | 5.43 | 5.38 | 5.76 | 6.91 | — | |
| Philip Morris International Inc. | — | — | — | — | — | |
| Financial Leverage, Sector | ||||||
| Food, Beverage & Tobacco | 5.44 | 5.37 | 5.16 | 6.13 | — | |
| Financial Leverage, Industry | ||||||
| Consumer Staples | 3.71 | 3.59 | 3.59 | 3.76 | — | |
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).
1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 9,686,522 ÷ 8,228,744 = 1.18
2 Click competitor name to see calculations.
- Total assets
- The total assets exhibited a consistent upward trend over the five-year period. From 2019 to 2023, total assets increased from approximately 5.15 billion to 9.69 billion US dollars. This represents a substantial growth, with the most notable absolute increase occurring between 2022 and 2023. The steady rise suggests expansion in asset base, possibly due to investments or accumulation of resources supporting business growth.
- Stockholders’ equity
- Stockholders’ equity also demonstrated a steady increase from 2019 through 2023, rising from about 4.17 billion to nearly 8.23 billion US dollars. This growth mirrored the increase in total assets, indicating an expansion in net assets attributable to shareholders. The continuous rise in equity reflects retained earnings and potentially additional equity financing, contributing to a strengthened capital structure.
- Financial leverage
- Financial leverage, expressed as a ratio, showed a slight decline over the period. Starting at 1.23 in 2019, the ratio gradually decreased to 1.18 in 2022 and remained stable through 2023. This indicates a modest reduction in the proportion of total assets financed by liabilities, implying a cautious approach to debt or improved capacity to finance assets through equity. The consistency in recent years suggests a stable financial leverage position.
Interest Coverage
Monster Beverage Corp., interest coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 1,630,988) | 1,191,624) | 1,377,475) | 1,409,594) | 1,107,835) | |
| Add: Income tax expense | 437,494) | 380,340) | 423,944) | 216,563) | 308,127) | |
| Add: Interest on finance lease liabilities | 255) | 24) | 19) | 39) | 56) | |
| Earnings before interest and tax (EBIT) | 2,068,737) | 1,571,988) | 1,801,438) | 1,626,196) | 1,416,018) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 8,112.69 | 65,499.50 | 94,812.53 | 41,697.33 | 25,286.04 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Coca-Cola Co. | 9.48 | 14.25 | 8.78 | 7.78 | — | |
| Mondelēz International Inc. | 12.83 | 9.39 | 16.08 | 12.33 | — | |
| PepsiCo Inc. | 8.95 | 10.57 | 5.94 | 8.24 | — | |
| Philip Morris International Inc. | 7.95 | 16.33 | 17.80 | 16.07 | — | |
| Interest Coverage, Sector | ||||||
| Food, Beverage & Tobacco | 9.23 | 12.81 | 9.56 | 10.01 | — | |
| Interest Coverage, Industry | ||||||
| Consumer Staples | 11.37 | 15.69 | 11.46 | 11.62 | — | |
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).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 2,068,737 ÷ 255 = 8,112.69
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT shows an overall upward trend from 2019 to 2023 with fluctuations. Starting at approximately 1.42 billion US dollars in 2019, it increased steadily to about 1.63 billion in 2020 and 1.80 billion in 2021. However, in 2022, there was a noticeable decline to roughly 1.57 billion, followed by a significant recovery and peak at approximately 2.07 billion in 2023. This indicates overall growth in operating profitability with a temporary dip in 2022.
- Interest on finance lease liabilities
- The interest expense on finance lease liabilities remained low and relatively stable between 2019 and 2022, ranging from 19 to 56 thousand US dollars. However, in 2023, this interest increased substantially to 255 thousand US dollars, marking a notable rise compared to previous years.
- Interest coverage ratio
- The interest coverage ratio, which measures the company's ability to meet interest obligations, exhibits a general decreasing trend despite extremely high levels throughout the period. It peaked dramatically in 2021 at around 94,812, before declining to about 65,500 in 2022 and falling further to 8,113 in 2023. The pronounced decline in 2023 reflects increased interest expenses and/or reduced EBIT relative to previous years, potentially indicating decreased margin of safety in covering interest commitments.
Fixed Charge Coverage
Monster Beverage Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 1,630,988) | 1,191,624) | 1,377,475) | 1,409,594) | 1,107,835) | |
| Add: Income tax expense | 437,494) | 380,340) | 423,944) | 216,563) | 308,127) | |
| Add: Interest on finance lease liabilities | 255) | 24) | 19) | 39) | 56) | |
| Earnings before interest and tax (EBIT) | 2,068,737) | 1,571,988) | 1,801,438) | 1,626,196) | 1,416,018) | |
| Add: Operating lease cost | 12,060) | 8,641) | 4,614) | 4,637) | 4,899) | |
| Earnings before fixed charges and tax | 2,080,797) | 1,580,629) | 1,806,052) | 1,630,833) | 1,420,917) | |
| Interest on finance lease liabilities | 255) | 24) | 19) | 39) | 56) | |
| Operating lease cost | 12,060) | 8,641) | 4,614) | 4,637) | 4,899) | |
| Fixed charges | 12,315) | 8,665) | 4,633) | 4,676) | 4,955) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 168.96 | 182.42 | 389.82 | 348.77 | 286.76 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Coca-Cola Co. | 7.73 | 10.14 | 7.41 | 6.45 | — | |
| Mondelēz International Inc. | 9.42 | 6.60 | 10.28 | 8.27 | — | |
| PepsiCo Inc. | 6.43 | 7.28 | 4.85 | 6.06 | — | |
| Philip Morris International Inc. | 6.92 | 12.59 | 13.43 | 11.50 | — | |
| Fixed Charge Coverage, Sector | ||||||
| Food, Beverage & Tobacco | 7.29 | 9.14 | 7.60 | 7.54 | — | |
| Fixed Charge Coverage, Industry | ||||||
| Consumer Staples | 7.38 | 9.06 | 7.46 | 7.19 | — | |
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).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,080,797 ÷ 12,315 = 168.96
2 Click competitor name to see calculations.
The financial data reveals several notable trends concerning earnings before fixed charges and tax, fixed charges, and fixed charge coverage over the period from December 31, 2019, to December 31, 2023.
- Earnings before Fixed Charges and Tax
- There is a general upward trend in earnings before fixed charges and tax throughout the observed years. The figure increased from approximately 1.42 billion US dollars in 2019 to about 1.63 billion US dollars in 2020, followed by a further rise to around 1.81 billion US dollars in 2021. In 2022, a decrease was noted to approximately 1.58 billion US dollars, but this was surpassed in 2023 with a significant increase reaching roughly 2.08 billion US dollars. This trajectory indicates strong earnings growth overall, with a temporary dip in 2022.
- Fixed Charges
- Fixed charges remained relatively stable from 2019 to 2021, with slight decreases from 4.955 million US dollars in 2019 to 4.676 million US dollars in 2020, and further down to 4.633 million US dollars in 2021. However, a sharp increase in fixed charges was observed starting in 2022, rising to 8.665 million US dollars and continuing upward to 12.315 million US dollars in 2023. This substantial rise in fixed charges over the last two years might reflect higher interest expenses or additional fixed financial commitments.
- Fixed Charge Coverage
- Fixed charge coverage ratio, which measures the ability to cover fixed charges with earnings, showed a decreasing trend after 2021. The ratio increased from 286.76 in 2019 to 348.77 in 2020 and further to 389.82 in 2021, indicating improved coverage ability up to that point. Following this peak, the ratio decreased significantly to 182.42 in 2022 and further to 168.96 in 2023. This decline implies that although earnings increased in 2023, the much larger increase in fixed charges weakened the capacity to cover these charges comfortably.
In summary, while earnings before fixed charges and tax generally improved with a minor setback in 2022, the firm experienced a significant increase in fixed charges starting in 2022, which adversely affected the fixed charge coverage ratio. The decline in coverage ratio over the last two years suggests a growing risk in managing fixed financial obligations despite increasing earnings.