Monarch Casino & Resort Inc (MCRI)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 501,012 | 476,398 | 395,377 | 184,413 | 249,166 |
| Property, plant and equipment | US$ in thousands | 580,497 | 578,050 | 580,807 | 572,507 | 501,483 |
| Fixed asset turnover | 0.86 | 0.82 | 0.68 | 0.32 | 0.50 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $501,012K ÷ $580,497K
= 0.86
Monarch Casino & Resort, Inc.'s fixed asset turnover has shown a fluctuating trend over the past five years. The ratio has increased gradually from 0.51 in 2019 to 0.86 in 2023. This indicates that the company generated $0.86 in revenue for every dollar invested in fixed assets in 2023, showing an improvement in efficiency in utilizing its fixed assets to generate sales.
The fluctuation in fixed asset turnover reflects changes in how efficiently the company is utilizing its fixed assets to generate revenue. The ratio was notably low in 2020 at 0.33, suggesting a temporary inefficiency in asset utilization that year. However, the subsequent years saw an upward trend, reflecting improved efficiency in converting fixed assets into revenue.
Overall, a rising fixed asset turnover indicates that Monarch Casino & Resort, Inc. has been more effective in leveraging its fixed assets to drive revenue in recent years. This improvement may be attributed to better asset management strategies, increased operational efficiency, or strong sales growth relative to the level of investment in fixed assets. Continued monitoring of this ratio will be essential to assess the company's ongoing operational performance and asset utilization efficiency.
Peer comparison
Dec 31, 2023