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.