Monster Beverage Debt
| MNST Stock | USD 54.06 0.08 0.15% |
Monster Beverage Corp holds a debt-to-equity ratio of 0.005. At this time, Monster Beverage's Short and Long Term Debt Total is comparatively stable compared to the past year. Short Term Debt is likely to gain to about 18.4 M in 2024, despite the fact that Net Debt To EBITDA is likely to grow to (1.05). . Monster Beverage's financial risk is the risk to Monster Beverage stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Monster Beverage's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Monster Beverage's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Monster Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Monster Beverage's stakeholders.
For most companies, including Monster Beverage, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Monster Beverage Corp, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Monster Beverage's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 9.0969 | Book Value 5.943 | Operating Margin 0.2551 | Profit Margin 0.2166 | Return On Assets 0.1459 |
Monster |
Monster Beverage Bond Ratings
Monster Beverage Corp financial ratings play a critical role in determining how much Monster Beverage have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for Monster Beverage's borrowing costs.| Piotroski F Score | 5 | Healthy | View |
| Beneish M Score | (2.39) | Unlikely Manipulator | View |
Monster Beverage Corp Debt to Cash Allocation
Monster Beverage Corp currently holds 66.02 M in liabilities with Debt to Equity (D/E) ratio of 0.01, which may suggest the company is not taking enough advantage from borrowing. Monster Beverage Corp has a current ratio of 4.11, suggesting that it is liquid enough and is able to pay its financial obligations when due. Note, when we think about Monster Beverage's use of debt, we should always consider it together with its cash and equity.Monster Beverage Common Stock Shares Outstanding Over Time
Monster Beverage Assets Financed by Debt
Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Monster Beverage's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Monster Beverage, which in turn will lower the firm's financial flexibility.Monster Beverage Corporate Bonds Issued
Monster Net Debt
Net Debt |
|
Understaning Monster Beverage Use of Financial Leverage
Monster Beverage's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to Monster Beverage's current equity. If creditors own a majority of Monster Beverage's assets, the company is considered highly leveraged. Understanding the composition and structure of Monster Beverage's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
| Last Reported | Projected for Next Year | ||
| Net Debt | -2.2 B | -2.1 B | |
| Short and Long Term Debt Total | 66 M | 69.3 M | |
| Short Term Debt | 17.5 M | 18.4 M | |
| Short and Long Term Debt | 720 K | 640 K | |
| Net Debt To EBITDA | (1.10) | (1.05) | |
| Interest Debt Per Share | 0.01 | 0.01 | |
| Cash Flow To Debt Ratio | (683.81) | (649.62) |
Thematic Opportunities
Explore Investment Opportunities
Additional Tools for Monster Stock Analysis
When running Monster Beverage's price analysis, check to measure Monster Beverage's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Monster Beverage is operating at the current time. Most of Monster Beverage's value examination focuses on studying past and present price action to predict the probability of Monster Beverage's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Monster Beverage's price. Additionally, you may evaluate how the addition of Monster Beverage to your portfolios can decrease your overall portfolio volatility.
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.