Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Monster Beverage Corp., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Monster Beverage Corp. gross profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Monster Beverage Corp. operating profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Monster Beverage Corp. net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Monster Beverage Corp. ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Monster Beverage Corp. ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Gross Profit Margin
Monster Beverage Corp., gross profit margin 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) | ||||||
| Gross profit | 3,794,206) | 3,174,567) | 3,108,513) | 2,723,880) | 2,518,585) | |
| Net sales | 7,140,027) | 6,311,050) | 5,541,352) | 4,598,638) | 4,200,819) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 53.14% | 50.30% | 56.10% | 59.23% | 59.95% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Altria Group Inc. | 58.34% | 56.77% | 53.79% | 49.80% | 50.62% | |
| Coca-Cola Co. | 59.52% | 58.14% | 60.27% | 59.31% | 60.77% | |
| PepsiCo Inc. | 54.21% | 53.03% | 53.35% | 54.82% | 55.13% | |
| Philip Morris International Inc. | 63.35% | 64.10% | 68.06% | 66.65% | 64.73% | |
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
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 3,794,206 ÷ 7,140,027 = 53.14%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Monster Beverage Corp. gross profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Operating Profit Margin
Monster Beverage Corp., operating profit margin 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) | ||||||
| Operating income | 1,953,355) | 1,584,721) | 1,797,467) | 1,633,153) | 1,402,939) | |
| Net sales | 7,140,027) | 6,311,050) | 5,541,352) | 4,598,638) | 4,200,819) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 27.36% | 25.11% | 32.44% | 35.51% | 33.40% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Altria Group Inc. | 47.16% | 47.49% | 44.44% | 41.57% | 41.12% | |
| Coca-Cola Co. | 24.72% | 25.37% | 26.67% | 27.25% | 27.06% | |
| PepsiCo Inc. | 13.10% | 13.33% | 14.04% | 14.32% | 15.32% | |
| Philip Morris International Inc. | 32.85% | 38.56% | 41.32% | 40.66% | 35.33% | |
| Operating Profit Margin, Sector | ||||||
| Food, Beverage & Tobacco | 23.57% | 25.01% | 26.21% | 26.30% | 25.88% | |
| Operating Profit Margin, Industry | ||||||
| Consumer Staples | 7.88% | 9.22% | 9.14% | 8.89% | 8.07% | |
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
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 1,953,355 ÷ 7,140,027 = 27.36%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Monster Beverage Corp. operating profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Net Profit Margin
Monster Beverage Corp., net profit margin 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) | |
| 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% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Altria Group Inc. | 33.21% | 22.97% | 9.51% | 17.08% | -5.15% | |
| Coca-Cola Co. | 23.42% | 22.19% | 25.28% | 23.47% | 23.94% | |
| PepsiCo Inc. | 9.92% | 10.31% | 9.59% | 10.12% | 10.89% | |
| Philip Morris International Inc. | 22.21% | 28.49% | 29.00% | 28.08% | 24.11% | |
| Net Profit Margin, Sector | ||||||
| Food, Beverage & Tobacco | 18.15% | 17.86% | 16.50% | 17.31% | 13.89% | |
| Net Profit Margin, Industry | ||||||
| Consumer Staples | 5.78% | 6.41% | 6.06% | 6.32% | 4.09% | |
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
Net profit margin = 100 × Net income ÷ Net sales
= 100 × 1,630,988 ÷ 7,140,027 = 22.84%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Monster Beverage Corp. net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Return on Equity (ROE)
Monster Beverage Corp., ROE 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) | |
| 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% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Altria Group Inc. | — | — | — | 157.34% | -20.78% | |
| Coca-Cola Co. | 41.30% | 39.59% | 42.48% | 40.14% | 46.99% | |
| PepsiCo Inc. | 49.04% | 51.96% | 47.48% | 52.92% | 49.47% | |
| Philip Morris International Inc. | — | — | — | — | — | |
| ROE, Sector | ||||||
| Food, Beverage & Tobacco | 120.39% | 117.44% | 106.01% | 118.96% | 77.88% | |
| ROE, Industry | ||||||
| Consumer Staples | 37.55% | 38.86% | 35.45% | 35.90% | 22.50% | |
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
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,630,988 ÷ 8,228,744 = 19.82%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Monster Beverage Corp. ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Return on Assets (ROA)
Monster Beverage Corp., ROA 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) | |
| 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% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Altria Group Inc. | 21.08% | 15.60% | 6.26% | 9.42% | -2.62% | |
| Coca-Cola Co. | 10.97% | 10.29% | 10.36% | 8.87% | 10.33% | |
| PepsiCo Inc. | 9.03% | 9.67% | 8.25% | 7.66% | 9.31% | |
| Philip Morris International Inc. | 11.96% | 14.67% | 22.06% | 17.98% | 16.76% | |
| ROA, Sector | ||||||
| Food, Beverage & Tobacco | 11.83% | 11.73% | 10.83% | 10.05% | 8.61% | |
| ROA, Industry | ||||||
| Consumer Staples | 9.02% | 9.75% | 8.82% | 8.60% | 5.79% | |
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
ROA = 100 × Net income ÷ Total assets
= 100 × 1,630,988 ÷ 9,686,522 = 16.84%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Monster Beverage Corp. ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |