Monarch Casino & Resort Inc (MCRI)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	504,574	496,616	494,378	485,510	477,157	469,036	446,939	427,969	392,852	344,759	291,098	208,535	184,745	182,882	190,498	239,503	249,166	246,865	245,639	242,787
Property, plant and equipment	US$ in thousands	580,497	576,126	577,795	581,360	578,050	581,183	587,947	586,543	580,807	570,903	565,877	569,544	572,507	520,423	512,140	508,589	501,483	486,335	458,832	425,405
Fixed asset turnover		0.87	0.86	0.86	0.84	0.83	0.81	0.76	0.73	0.68	0.60	0.51	0.37	0.32	0.35	0.37	0.47	0.50	0.51	0.54	0.57

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $504,574K ÷ $580,497K
= 0.87

The fixed asset turnover ratio for Monarch Casino & Resort, Inc. has shown a generally increasing trend over the past eight quarters, reflecting the company's efficiency in generating revenue from its fixed assets. The ratio has fluctuated between 0.73 and 0.88 during this period, with the highest values achieved in Q3 2023 and Q2 2023.

A fixed asset turnover ratio of less than 1 indicates that the company generates less revenue relative to its investment in fixed assets. Monarch's ratios ranging from 0.73 to 0.88 suggest that for every dollar invested in fixed assets, the company is generating between $0.73 and $0.88 in revenue. This improvement over the quarters indicates that the company has become more effective in utilizing its fixed assets to drive sales.

Overall, the increasing trend in fixed asset turnover implies that Monarch Casino & Resort, Inc. has been able to enhance its operational efficiency and optimize the utilization of its fixed assets to generate revenue. Investors and stakeholders may view this as a positive sign of the company's ability to generate sales from its asset base.