Monarch Casino & Resort Inc (MCRI)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 11.67 | 13.92 | 12.93 | 42.67 | 21.62 |
| Receivables turnover | 44.31 | 38.55 | 13.79 | 11.04 | 6.44 |
| Payables turnover | 2.63 | 4.59 | 6.78 | 16.45 | 14.51 |
| Working capital turnover | — | — | — | — | — |
The activity ratios of Monarch Casino & Resort Inc provide insights into the efficiency of the company's operations.
1. Inventory Turnover: Monarch Casino & Resort Inc's inventory turnover has shown fluctuations over the years. In 2021 and 2022, the company experienced a significant increase in inventory turnover, indicating a more efficient management of inventory. However, in 2024, there was a decrease in inventory turnover, suggesting potential inventory management challenges.
2. Receivables Turnover: The receivables turnover ratio of Monarch Casino & Resort Inc has been increasing consistently from 2020 to 2024. This indicates that the company is collecting its receivables more effectively each year, which is a positive sign of efficient credit management and collection processes.
3. Payables Turnover: Monarch Casino & Resort Inc's payables turnover ratio has been declining steadily over the years. This implies that the company is taking longer to pay its suppliers, which may have implications for vendor relationships and possible liquidity management issues.
4. Working Capital Turnover: It is worth noting that there is no available data for the working capital turnover ratio for Monarch Casino & Resort Inc from 2020 to 2024. This ratio could provide insights into how efficiently the company is utilizing its working capital to generate sales.
Overall, analyzing these activity ratios together can help stakeholders evaluate Monarch Casino & Resort Inc's effectiveness in managing its inventory, collecting receivables, and managing payables. It is essential for the company to monitor these ratios closely to ensure optimal efficiency in its operational activities.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 31.28 | 26.21 | 28.24 | 8.55 | 16.88 |
| Days of sales outstanding (DSO) | days | 8.24 | 9.47 | 26.47 | 33.07 | 56.67 |
| Number of days of payables | days | 138.76 | 79.50 | 53.86 | 22.19 | 25.15 |
The analysis of Monarch Casino & Resort Inc's activity ratios reveals significant fluctuations over the five-year period from 2020 to 2024.
1. Days of Inventory on Hand (DOH):
- In December 2020, the company had 16.88 days of inventory on hand, which decreased to 8.55 days by December 2021, indicating an improvement in inventory management efficiency.
- However, there was a notable increase in DOH to 28.24 days by December 2022, followed by a further rise to 31.28 days by December 2024. This suggests potential inefficiencies in inventory management or changes in the business operations impacting inventory levels.
2. Days of Sales Outstanding (DSO):
- The DSO for Monarch Casino & Resort Inc declined from 56.67 days in December 2020 to 33.07 days in December 2021, indicating a faster collection of receivables.
- Subsequently, the DSO decreased significantly to 9.47 days by December 2023 and further to 8.24 days by December 2024, suggesting an improvement in the company's ability to collect payments from customers promptly.
3. Number of Days of Payables:
- The number of days of payables increased from 25.15 days in December 2020 to 22.19 days in December 2021, which indicates that the company was paying its suppliers more quickly.
- However, there was a significant increase in the days of payables to 53.86 days by December 2022 and a further rise to 79.50 days by December 2023, indicating a potential extension in payment terms. By December 2024, the days of payables had increased significantly to 138.76 days, suggesting prolonged payment periods which may impact cash flow management.
Overall, Monarch Casino & Resort Inc's activity ratios depict varying trends in inventory management, receivables collection, and payment terms over the years, which could reflect changes in operational strategies and business dynamics. Further analysis and investigation into the underlying reasons for these fluctuations would be necessary to provide a deeper understanding of the company's financial performance.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.91 | 0.86 | 0.82 | 0.68 | 0.32 |
| Total asset turnover | 0.75 | 0.74 | 0.69 | 0.57 | 0.27 |
The fixed asset turnover ratio for Monarch Casino & Resort Inc has shown a positive trend over the years, increasing from 0.32 in 2020 to 0.91 in 2024. This indicates that the company is generating more sales revenue per dollar invested in fixed assets, which is a positive sign of operational efficiency and effective asset utilization.
Similarly, the total asset turnover ratio has also exhibited growth, rising from 0.27 in 2020 to 0.75 in 2024. This demonstrates that Monarch Casino & Resort Inc is generating more sales revenue relative to its total assets, showcasing improved efficiency in utilizing all assets to generate revenue.
Overall, the increasing trends in both fixed asset turnover and total asset turnover ratios suggest that Monarch Casino & Resort Inc has been successful in effectively utilizing its assets to drive revenue generation and improve overall operational performance over the years.