Monarch Casino & Resort Inc (MCRI)

Days of sales outstanding (DSO)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		38.83	36.36	39.05	60.66	13.81	13.57	12.52	13.42	10.97	11.51	8.63	6.70	6.45	34.62	27.30	55.85	44.15	36.50	38.36	45.06
DSO	days	9.40	10.04	9.35	6.02	26.43	26.90	29.15	27.20	33.29	31.71	42.30	54.44	56.56	10.54	13.37	6.53	8.27	10.00	9.52	8.10

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 38.83
= 9.40

To analyze the Days of Sales Outstanding (DSO) of Monarch Casino & Resort, Inc., we look at the trend over the past eight quarters.

The DSO measures how long it takes for a company to collect revenue after making a sale. A lower DSO indicates a faster collection process, while a higher DSO suggests slower collections.

Looking at the data provided, we observe that in Q1 2023, the DSO was at its lowest point in the past year, at 6.01 days, indicating efficient collection of sales revenue. This was a significant improvement compared to the previous quarters, where the DSO ranged between 9.34 and 10.09 days.

In contrast, the DSO was considerably higher in the quarters of 2022, with values above 25 days. This signifies a slower collection process during that period, which could potentially strain cash flows and working capital management.

Overall, the decreasing trend in DSO from Q2 2022 to Q1 2023 is a positive sign, indicating that Monarch Casino & Resort, Inc. has been improving its efficiency in collecting sales revenue. However, it is important to continue monitoring this metric to ensure that the trend persists and does not reverse in the future quarters.