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Monster Beverage ROE %

: 31.42% (As of Sep. 2020)
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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 Sep. 2020 was $1,391 Mil. Monster Beverage's average Total Stockholders Equity over the quarter that ended in Sep. 2020 was $4,425 Mil. Therefore, Monster Beverage's annualized ROE % for the quarter that ended in Sep. 2020 was 31.42%.

NAS:MNST' s ROE % Range Over the Past 10 Years
Min: 17.29   Med: 29.24   Max: 41.89
Current: 28.4

17.29
41.89

During the past 13 years, Monster Beverage's highest ROE % was 41.89%. The lowest was 17.29%. And the median was 29.24%.

NAS:MNST's ROE % is ranked higher than
92% of the 91 Companies
in the Beverages - Non-Alcoholic industry.

( Industry Median: 9.13 vs. NAS:MNST: 28.40 )

Monster Beverage ROE % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Monster Beverage Annual Data
Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.29 17.51 22.72 26.46 28.47

Monster Beverage Quarterly Data
Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20
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 29.29 24.64 27.74 30.78 31.42

Competitive Comparison
* 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.


Monster Beverage ROE % Distribution

* 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. 2019 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Dec. 2019 )/( (Total Stockholders Equity (A: Dec. 2018 )+Total Stockholders Equity (A: Dec. 2019 ))/ count )
=1107.835/( (3610.901+4171.281)/ 2 )
=1107.835/3891.091
=28.47 %

Monster Beverage's annualized ROE % for the quarter that ended in Sep. 2020 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: Sep. 2020 )/( (Total Stockholders Equity (Q: Jun. 2020 )+Total Stockholders Equity (Q: Sep. 2020 ))/ count )
=1390.616/( (4221.54+4629.321)/ 2 )
=1390.616/4425.4305
=31.42 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 (Sep. 2020) 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: Sep. 2020 )
=Net Income/Total Stockholders Equity
=1390.616/4425.4305
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1390.616 / 4985.448)*(4985.448 / 5445.748)*(5445.748 / 4425.4305)
=Net Margin %*Asset Turnover*Equity Multiplier
=27.89 %*0.9155*1.2306
=ROA %*Equity Multiplier
=25.53 %*1.2306
=31.42 %

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: Sep. 2020 )
=Net Income/Total Stockholders Equity
=1390.616/4425.4305
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (1390.616 / 1816.132) * (1816.132 / 1834.404) * (1834.404 / 4985.448) * (4985.448 / 5445.748) * (5445.748 / 4425.4305)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7657 * 0.99 * 36.8 % * 0.9155 * 1.2306
=31.42 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Sep. 2020) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Sep. 2020) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.


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