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Monster Beverage ROE %

: 17.52% (As of Mar. 2022)
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ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. Monster Beverage's annualized net income attributable to common stockholders for the quarter that ended in Mar. 2022 was USD1,177 Mil. Monster Beverage's average Total Stockholders Equity over the quarter that ended in Mar. 2022 was USD6,717 Mil. Therefore, Monster Beverage's annualized ROE % for the quarter that ended in Mar. 2022 was 17.52%.

The historical rank and industry rank for Monster Beverage's ROE % or its related term are showing as below:

MNST' s ROE % Range Over the Past 10 Years
Min: 17.29   Med: 27.47   Max: 41.89
Current: 21.85

During the past 13 years, Monster Beverage's highest ROE % was 41.89%. The lowest was 17.29%. And the median was 27.47%.

MNST's ROE % is ranked better than
86.73% of 98 companies
in the Beverages - Non-Alcoholic industry
Industry Median: 9.06 vs MNST: 21.85

Monster Beverage ROE % Historical Data

The historical data trend for Monster Beverage's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Monster Beverage Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.72 26.46 28.47 30.21 23.49

Monster Beverage Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 23.74 28.42 22.20 20.06 17.52

Competitive Comparison

For the Beverages - Non-Alcoholic subindustry, Monster Beverage's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Monster Beverage ROE % Distribution

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Monster Beverage's ROE % distribution charts can be found below:

* The bar in red indicates where Monster Beverage's ROE % falls into.



Monster Beverage ROE % Calculation

Monster Beverage's annualized ROE % for the fiscal year that ended in Dec. 2021 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Dec. 2021 )/( (Total Stockholders Equity (A: Dec. 2020 )+Total Stockholders Equity (A: Dec. 2021 ))/ count )
=1377.475/( (5160.86+6566.951)/ 2 )
=1377.475/5863.9055
=23.49 %

Monster Beverage's annualized ROE % for the quarter that ended in Mar. 2022 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: Mar. 2022 )/( (Total Stockholders Equity (Q: Dec. 2021 )+Total Stockholders Equity (Q: Mar. 2022 ))/ count )
=1176.812/( (6566.951+6866.672)/ 2 )
=1176.812/6716.8115
=17.52 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income attributable to common stockholders of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income attributable to common stockholders data used here is four times the quarterly (Mar. 2022) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


Monster Beverage  (NAS:MNST) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %**(Q: Mar. 2022 )
=Net Income/Total Stockholders Equity
=1176.812/6716.8115
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1176.812 / 6074.296)*(6074.296 / 7996.1215)*(7996.1215 / 6716.8115)
=Net Margin %*Asset Turnover*Equity Multiplier
=19.37 %*0.7597*1.1905
=ROA %*Equity Multiplier
=14.72 %*1.1905
=17.52 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %**(Q: Mar. 2022 )
=Net Income/Total Stockholders Equity
=1176.812/6716.8115
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (1176.812 / 1568.756) * (1568.756 / 1597.956) * (1597.956 / 6074.296) * (6074.296 / 7996.1215) * (7996.1215 / 6716.8115)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7502 * 0.9817 * 26.31 % * 0.7597 * 1.1905
=17.52 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Mar. 2022) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Mar. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.


Be Aware

Net income attributable to common stockholders is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Monster Beverage ROE % Related Terms

Thank you for viewing the detailed overview of Monster Beverage's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Monster Beverage Business Description

Monster Beverage logo
Industry
Address
1 Monster Way, Corona, CA, USA, 92879
Monster Beverage is a leader in the energy drink subsegment of the beverage industry. The Monster trademark anchors the portfolio, and notable offerings include Monster Energy and Monster Ultra. The firm has also started to incubate new trademarks for emerging enclaves of the energy space, like Reign in performance energy. It is primarily a brand owner, outsourcing most of its manufacturing processes to third-party copackers. It primarily uses the Coca-Cola bottling system for distribution after a strategic agreement in which Coke became Monster's largest shareholder (roughly 19%) and that also included the exchange of certain businesses between the two firms. Most of Monster's revenue is generated in the United States, though international geographies are increasing in the mix.
Executives
Fayard Gary P director ONE COCA COLA PLAZA ATLANTA GA 30313
Polk Benjamin director C/O MONSTER BEVERAGE CORPORATION 1 MONSTER WAY CORONA CA 92879
Jackson Jeanne P director 537 NEWPORT CENTER DRIVE #306 NEWPORT BEACH CA 92660
Kelly Thomas J officer: EVP Finance Monster Energy Co. MONSTER BEVERAGE CORPORATION 1 MONSTER WAY CORONA CA 92879
Carling Guy officer: President of EMEA 1 MONSTER WAY CORONA CA 92879
Vidergauz Mark director C/O MONSTER BEVERAGE CORPORATION 1 MONSTER WAY CORONA CA 92879
Tirre Emelie officer: President of the Americas 1 MONSTER WAY CORONA CA 92879
Selati Sydney director 1 MONSTER WAY CORONA CA 92879
Ciaramello Kathleen E director THE COCA-COLA COMPANY ONE COCA-COLA PLAZA ATLANTA GA 30313
Pizula Steven G director 1 MONSTER WAY CORONA CA 92879
Hall Mark J director MONSTER BEVERAGE CORPORATION 1 MONSTER WAY CORONA CA 92879
Schlosberg Hilton H director, officer: Vice Chairman and President C/O MONSTER BEVERAGE CORP 1 MONSTER WAY CORONA CA 92879
Sacks Rodney C director, officer: Chairman and CEO C/O HANSEN NATURAL CORP 550 MONICA CIRCLE, SUITE 201 CORONA CA 92880
Epstein Norman director C/O HANSEN NATURAL CORP 1 MONSTER WAY CORONA CA 92879
Waller Kathy N director THE COCA-COLA COMPANY ONE COCA-COLA PLAZA ATLANTA GA 30313

Monster Beverage Headlines

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