Monarch Casino & Resort Inc (MCRI)

Payables 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
Cost of revenue (ttm)	US$ in thousands	106,019	101,933	100,493	98,635	97,702	95,636	91,675	89,185	84,927	82,797	77,863	66,326	64,395	98,202	135,508	177,566	209,591	205,927	202,358	199,797
Payables	US$ in thousands	23,092	19,536	15,034	15,247	14,418	16,510	16,795	19,410	18,575	14,936	13,790	12,358	11,655	11,282	6,591	6,579	17,037	11,149	11,501	9,522
Payables turnover		4.59	5.22	6.68	6.47	6.78	5.79	5.46	4.59	4.57	5.54	5.65	5.37	5.53	8.70	20.56	26.99	12.30	18.47	17.59	20.98

December 31, 2023 calculation

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

The payables turnover ratio for Monarch Casino & Resort, Inc. has been relatively stable over the past eight quarters, ranging from 2.63 to 3.48. This ratio indicates the company's efficiency in managing its accounts payable by measuring how many times during a period the company pays off its average accounts payable balance.

The trend shows an improvement in payables turnover from Q1 2022 to Q3 2023, suggesting that the company has been able to speed up its payments to suppliers. This can be positive as it may indicate better cash flow management or stronger negotiation power with suppliers, resulting in a shorter payment cycle.

A payables turnover ratio of above 3.0 typically indicates that the company is paying its suppliers relatively quickly, which could help maintain good relationships with vendors. However, it is essential to balance this with maintaining adequate cash reserves for operating activities.

Overall, the consistency and slight improvement in the payables turnover ratio for Monarch Casino & Resort, Inc. indicate efficient management of accounts payable, which may contribute to the company's financial health and operational effectiveness.