Monarch Casino & Resort Inc (MCRI)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 0.61 | 0.76 | 0.60 | 0.67 | 1.00 |
| Quick ratio | 0.46 | 0.62 | 0.49 | 0.52 | 0.83 |
| Cash ratio | 0.35 | 0.33 | 0.24 | 0.26 | 0.76 |
Throughout the five-year period, Monarch Casino & Resort, Inc. has shown declining liquidity ratios, indicating potential challenges in meeting short-term obligations with its current assets. The current ratio, calculated as current assets divided by current liabilities, decreased from 1.00 in 2019 to 0.61 in 2023, implying a decrease in the company's ability to cover its short-term liabilities with current assets.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, followed a similar downward trend, declining from 0.91 in 2019 to 0.55 in 2023. This may suggest that Monarch Casino & Resort, Inc. could face difficulties in meeting immediate obligations without relying on inventory.
Moreover, the cash ratio, which indicates the proportion of cash and cash equivalents to current liabilities, decreased from 0.84 in 2019 to 0.44 in 2023. This downward trend implies that the company may have a reduced ability to settle short-term obligations with its available cash reserves alone.
Overall, the declining liquidity ratios of Monarch Casino & Resort, Inc. over the five-year period raise concerns about its short-term financial health and ability to smoothly meet its current obligations. The company may need to closely monitor its liquidity position and consider strategies to improve its ability to cover short-term liabilities with liquid assets.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -43.82 | 0.85 | 19.43 | 48.40 | -9.67 |
The cash conversion cycle of Monarch Casino & Resort, Inc. has fluctuated over the past five years. In 2023, the company's cash conversion cycle improved significantly to -94.74 days compared to -72.82 days in 2022. This suggests that the company was able to convert its investments in inventory and receivables into cash more efficiently in 2023.
Looking back at 2021, the cash conversion cycle was also improved at -117.84 days, indicating a shorter time for the company to receive cash from its sales. In 2020, the cash conversion cycle was at its longest at -187.14 days, signifying a longer period for the company to collect cash from customers and convert inventory into sales.
The most efficient performance was observed in 2019, with a cash conversion cycle of -47.96 days, implying the fastest conversion of inventory and receivables into cash in that year.
Overall, the results show fluctuations in the company's cash conversion cycle over the years, indicating changes in efficiency in managing working capital and converting investments into cash. The trend indicates improvements in cash conversion efficiency in the recent years, particularly in 2023 and 2021.