Monarch Casino & Resort Inc (MCRI)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	106,019	97,702	305,500	169,142	209,591
Payables	US$ in thousands	23,092	14,418	18,575	11,655	17,037
Payables turnover		4.59	6.78	16.45	14.51	12.30

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $106,019K ÷ $23,092K
= 4.59

The payables turnover ratio measures how efficiently a company is managing its accounts payable. A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly.

Looking at the data provided for Monarch Casino & Resort, Inc., we observe fluctuations in the payables turnover ratio over the past five years. In 2023, the payables turnover ratio decreased to 3.13 from 3.25 in 2022, suggesting a slight decrease in the efficiency of paying off suppliers compared to the previous year.

In 2021, the payables turnover ratio increased significantly to 2.20 from 1.31 in 2020, indicating an improvement in efficiently managing accounts payable. However, the ratio dropped to 1.31 in 2020, reflecting a decline in the speed of paying off suppliers compared to the previous year.

The most notable change occurred in 2019 when the payables turnover ratio spiked to 4.71, indicating a substantial improvement in the efficiency of managing accounts payable, possibly due to better negotiation terms with suppliers or more effective cash flow management.

Overall, fluctuations in the payables turnover ratio of Monarch Casino & Resort, Inc. suggest varying levels of efficiency in managing accounts payable over the past five years, with the company experiencing both improvements and setbacks in this aspect of its operations.