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MNST (Monster Beverage) Degree of Operating Leverage : -2.52 (As of Mar. 2025)


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What is Monster Beverage Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Monster Beverage's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -2.52. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Monster Beverage's Degree of Operating Leverage or its related term are showing as below:

MNST's Degree of Operating Leverage is ranked better than
82.88% of 111 companies
in the Beverages - Non-Alcoholic industry
Industry Median: 0.98 vs MNST: -2.52

Monster Beverage Degree of Operating Leverage Historical Data

The historical data trend for Monster Beverage's Degree of Operating Leverage 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.

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Monster Beverage Degree of Operating Leverage Chart

Monster Beverage Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.73 0.49 -0.85 1.77 0.13

Monster Beverage Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial 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 1.72 1.21 0.78 0.13 -2.52

Competitive Comparison of Monster Beverage's Degree of Operating Leverage

For the Beverages - Non-Alcoholic subindustry, Monster Beverage's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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's Degree of Operating Leverage Distribution in the Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Monster Beverage's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Monster Beverage's Degree of Operating Leverage falls into.


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Monster Beverage Degree of Operating Leverage Calculation

Monster Beverage's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 1970.32 (Mar. 2025) / 2046.136 (Mar. 2024) - 1 )/( 7448.169 (Mar. 2025) / 7340.195 (Mar. 2024) - 1 )
=-0.0371/0.0147
=-2.52***

* 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.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Monster Beverage  (NAS:MNST) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Monster Beverage Degree of Operating Leverage Related Terms

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


Monster Beverage Business Description

Address
1 Monster Way, Corona, CA, USA, 92879
Monster Beverage is a leader in the energy drink category within the nonalcoholic ready-to-drink beverage market, generating two thirds of revenue in the US and Canada. The well-known Monster trademark includes brands such as Monster Energy, Monster Ultra, Java Monster, and Juice Monster. The firm also owns other energy drink brands, such as Reign, NOS, Burn, Bang and Mother, and brews and distributes beers and flavored malt beverages following the acquisition of a craft brewer in 2022. Monster controls branding and innovation but outsources beverage manufacturing and packaging to copackers and finished goods distribution to bottlers in the global Coca-Cola system (pursuant to a 20-year agreement inked in 2015). Coke is the largest shareholder of Monster with a 19.5% stake.
Executives
Emelie Tirre officer: President of the Americas 1 MONSTER WAY, CORONA CA 92879
Mark Vidergauz director C/O MONSTER BEVERAGE CORPORATION, 1 MONSTER WAY, CORONA CA 92879
Thomas J Kelly officer: VP-Hansen Beverage Company MONSTER BEVERAGE CORPORATION, 1 MONSTER WAY, CORONA CA 92879
Guy Carling officer: President of EMEA 1 MONSTER WAY, CORONA CA 92879
Mark J Hall officer: Senior VP, Hansen Bev Co MONSTER BEVERAGE CORPORATION, 1 MONSTER WAY, CORONA CA 92879
Rodney C Sacks director, officer: Chairman and CEO C/O HANSEN NATURAL CORP, 550 MONICA CIRCLE, SUITE 201, CORONA CA 92880
Hilton H Schlosberg director, officer: Vice Chairman and President C/O MONSTER BEVERAGE CORP, 1 MONSTER WAY, CORONA CA 92879
Ana Demel director 1 MONSTER WAY, CORONA CA 92879
James L Dinkins director C/O THE COCA-COLA COMPANY, ONE COCA-COLA PLAZA, ATLANTA GA 30313
Steven G Pizula director 1 MONSTER WAY, CORONA CA 92879
Gary P Fayard director ONE COCA COLA PLAZA, ATLANTA GA 30313
Tiffany M. Hall director 1 MONSTER WAY, CORONA CA 92879
Jeanne P Jackson director 537 NEWPORT CENTER DRIVE, #306, NEWPORT BEACH CA 92660
Sydney Selati director 1 MONSTER WAY, CORONA CA 92879
Benjamin Polk director C/O MONSTER BEVERAGE CORPORATION, 1 MONSTER WAY, CORONA CA 92879