Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Monster Beverage Corp., short-term (operating) activity 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Monster Beverage Corp. inventory turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Monster Beverage Corp. receivables turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Monster Beverage Corp. payables turnover ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Monster Beverage Corp. working capital turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Monster Beverage Corp. number of days of inventory outstanding deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Monster Beverage Corp. operating cycle deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Monster Beverage Corp. number of days of payables outstanding decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Monster Beverage Corp. cash conversion cycle deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Inventory Turnover
Monster Beverage Corp., inventory turnover 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) | ||||||
| Cost of sales | 3,345,821) | 3,136,483) | 2,432,839) | 1,874,758) | 1,682,234) | |
| Inventories | 971,406) | 935,631) | 593,357) | 333,085) | 360,731) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 3.44 | 3.35 | 4.10 | 5.63 | 4.66 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Altria Group Inc. | 5.12 | 5.46 | 5.96 | 3.98 | 3.09 | |
| Coca-Cola Co. | 4.19 | 4.25 | 4.50 | 4.11 | 4.33 | |
| PepsiCo Inc. | 7.85 | 7.77 | 8.53 | 7.62 | 9.03 | |
| Philip Morris International Inc. | 1.20 | 1.15 | 1.15 | 1.00 | 1.14 | |
| Inventory Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 3.66 | 3.72 | 3.94 | 3.30 | 3.42 | |
| Inventory Turnover, Industry | ||||||
| Consumer Staples | 7.41 | 6.96 | 7.97 | 7.50 | 7.42 | |
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
Inventory turnover = Cost of sales ÷ Inventories
= 3,345,821 ÷ 971,406 = 3.44
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Monster Beverage Corp. inventory turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Receivables Turnover
Monster Beverage Corp., receivables turnover 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 sales | 7,140,027) | 6,311,050) | 5,541,352) | 4,598,638) | 4,200,819) | |
| Accounts receivable, net | 1,193,964) | 1,016,203) | 896,658) | 666,012) | 540,330) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 5.98 | 6.21 | 6.18 | 6.90 | 7.77 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Altria Group Inc. | 344.83 | 522.83 | 553.47 | 190.90 | 165.20 | |
| Coca-Cola Co. | 13.42 | 12.33 | 11.01 | 10.50 | 9.38 | |
| PepsiCo Inc. | 8.46 | 8.50 | 9.16 | 8.37 | 8.59 | |
| Philip Morris International Inc. | 10.16 | 8.25 | 10.06 | 9.88 | 9.68 | |
| Receivables Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 11.09 | 10.61 | 11.43 | 10.85 | 10.61 | |
| Receivables Turnover, Industry | ||||||
| Consumer Staples | 36.63 | 35.12 | 38.75 | 37.54 | 34.71 | |
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
Receivables turnover = Net sales ÷ Accounts receivable, net
= 7,140,027 ÷ 1,193,964 = 5.98
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Monster Beverage Corp. receivables turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Payables Turnover
Monster Beverage Corp., payables turnover 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) | ||||||
| Cost of sales | 3,345,821) | 3,136,483) | 2,432,839) | 1,874,758) | 1,682,234) | |
| Accounts payable | 564,379) | 444,265) | 404,263) | 296,800) | 274,045) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 5.93 | 7.06 | 6.02 | 6.32 | 6.14 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Altria Group Inc. | 10.68 | 11.67 | 15.86 | 20.57 | 21.80 | |
| Coca-Cola Co. | 3.31 | 3.39 | 3.34 | 3.82 | 3.84 | |
| PepsiCo Inc. | 3.60 | 3.78 | 3.77 | 3.59 | 3.76 | |
| Philip Morris International Inc. | 3.11 | 2.80 | 3.01 | 3.44 | 4.57 | |
| Payables Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 3.62 | 3.70 | 3.82 | 4.03 | 4.32 | |
| Payables Turnover, Industry | ||||||
| Consumer Staples | 7.27 | 6.61 | 6.91 | 7.01 | 7.11 | |
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
Payables turnover = Cost of sales ÷ Accounts payable
= 3,345,821 ÷ 564,379 = 5.93
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Monster Beverage Corp. payables turnover ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
Working Capital Turnover
Monster Beverage Corp., working capital turnover 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 assets | 5,588,996) | 4,764,897) | 4,682,110) | 3,140,955) | 2,316,309) | |
| Less: Current liabilities | 1,161,689) | 1,001,978) | 965,076) | 749,988) | 661,097) | |
| Working capital | 4,427,307) | 3,762,919) | 3,717,034) | 2,390,967) | 1,655,212) | |
| Net sales | 7,140,027) | 6,311,050) | 5,541,352) | 4,598,638) | 4,200,819) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 1.61 | 1.68 | 1.49 | 1.92 | 2.54 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Altria Group Inc. | — | — | — | — | — | |
| Coca-Cola Co. | 14.47 | 15.00 | 14.90 | 7.12 | — | |
| PepsiCo Inc. | — | — | — | — | — | |
| Philip Morris International Inc. | — | — | — | 15.29 | 17.73 | |
| Working Capital Turnover, Sector | ||||||
| Food, Beverage & Tobacco | — | — | — | 37.68 | — | |
| Working Capital Turnover, Industry | ||||||
| Consumer Staples | — | — | — | — | — | |
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
Working capital turnover = Net sales ÷ Working capital
= 7,140,027 ÷ 4,427,307 = 1.61
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Monster Beverage Corp. working capital turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Average Inventory Processing Period
Monster Beverage Corp., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 3.44 | 3.35 | 4.10 | 5.63 | 4.66 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 106 | 109 | 89 | 65 | 78 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Altria Group Inc. | 71 | 67 | 61 | 92 | 118 | |
| Coca-Cola Co. | 87 | 86 | 81 | 89 | 84 | |
| PepsiCo Inc. | 46 | 47 | 43 | 48 | 40 | |
| Philip Morris International Inc. | 305 | 316 | 317 | 366 | 321 | |
| Average Inventory Processing Period, Sector | ||||||
| Food, Beverage & Tobacco | 100 | 98 | 93 | 111 | 107 | |
| Average Inventory Processing Period, Industry | ||||||
| Consumer Staples | 49 | 52 | 46 | 49 | 49 | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.44 = 106
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Monster Beverage Corp. number of days of inventory outstanding deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Average Receivable Collection Period
Monster Beverage Corp., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 5.98 | 6.21 | 6.18 | 6.90 | 7.77 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 61 | 59 | 59 | 53 | 47 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Altria Group Inc. | 1 | 1 | 1 | 2 | 2 | |
| Coca-Cola Co. | 27 | 30 | 33 | 35 | 39 | |
| PepsiCo Inc. | 43 | 43 | 40 | 44 | 43 | |
| Philip Morris International Inc. | 36 | 44 | 36 | 37 | 38 | |
| Average Receivable Collection Period, Sector | ||||||
| Food, Beverage & Tobacco | 33 | 34 | 32 | 34 | 34 | |
| Average Receivable Collection Period, Industry | ||||||
| Consumer Staples | 10 | 10 | 9 | 10 | 11 | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.98 = 61
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Operating Cycle
Monster Beverage Corp., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 106 | 109 | 89 | 65 | 78 | |
| Average receivable collection period | 61 | 59 | 59 | 53 | 47 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 167 | 168 | 148 | 118 | 125 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Altria Group Inc. | 72 | 68 | 62 | 94 | 120 | |
| Coca-Cola Co. | 114 | 116 | 114 | 124 | 123 | |
| PepsiCo Inc. | 89 | 90 | 83 | 92 | 83 | |
| Philip Morris International Inc. | 341 | 360 | 353 | 403 | 359 | |
| Operating Cycle, Sector | ||||||
| Food, Beverage & Tobacco | 133 | 132 | 125 | 145 | 141 | |
| Operating Cycle, Industry | ||||||
| Consumer Staples | 59 | 62 | 55 | 59 | 60 | |
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 cycle = Average inventory processing period + Average receivable collection period
= 106 + 61 = 167
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Monster Beverage Corp. operating cycle deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Average Payables Payment Period
Monster Beverage Corp., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 5.93 | 7.06 | 6.02 | 6.32 | 6.14 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 62 | 52 | 61 | 58 | 59 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Altria Group Inc. | 34 | 31 | 23 | 18 | 17 | |
| Coca-Cola Co. | 110 | 108 | 109 | 96 | 95 | |
| PepsiCo Inc. | 101 | 97 | 97 | 102 | 97 | |
| Philip Morris International Inc. | 117 | 130 | 121 | 106 | 80 | |
| Average Payables Payment Period, Sector | ||||||
| Food, Beverage & Tobacco | 101 | 99 | 96 | 91 | 85 | |
| Average Payables Payment Period, Industry | ||||||
| Consumer Staples | 50 | 55 | 53 | 52 | 51 | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.93 = 62
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Monster Beverage Corp. number of days of payables outstanding decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
Cash Conversion Cycle
Monster Beverage Corp., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 106 | 109 | 89 | 65 | 78 | |
| Average receivable collection period | 61 | 59 | 59 | 53 | 47 | |
| Average payables payment period | 62 | 52 | 61 | 58 | 59 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 105 | 116 | 87 | 60 | 66 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Altria Group Inc. | 38 | 37 | 39 | 76 | 103 | |
| Coca-Cola Co. | 4 | 8 | 5 | 28 | 28 | |
| PepsiCo Inc. | -12 | -7 | -14 | -10 | -14 | |
| Philip Morris International Inc. | 224 | 230 | 232 | 297 | 279 | |
| Cash Conversion Cycle, Sector | ||||||
| Food, Beverage & Tobacco | 32 | 33 | 29 | 54 | 56 | |
| Cash Conversion Cycle, Industry | ||||||
| Consumer Staples | 9 | 7 | 2 | 7 | 9 | |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 106 + 61 – 62 = 105
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Monster Beverage Corp. cash conversion cycle deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |