Monarch Casino & Resort Inc (MCRI)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 0.62 | 0.61 | 0.76 | 0.60 | 0.67 |
| Quick ratio | 0.48 | 0.46 | 0.62 | 0.49 | 0.52 |
| Cash ratio | 0.40 | 0.35 | 0.33 | 0.24 | 0.26 |
Monarch Casino & Resort Inc's liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio, which measures the firm's ability to cover current liabilities with current assets, has shown fluctuations over the years but generally remains below 1, which may signal potential liquidity challenges.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also reflects a similar trend as the current ratio, indicating that the company may have difficulties meeting its short-term obligations without relying on inventory.
On the positive side, the cash ratio, which assesses the firm's ability to cover current liabilities with cash and cash equivalents, has been improving over the years. This suggests that Monarch Casino & Resort Inc has been gradually increasing its ability to meet its short-term obligations using readily available cash resources.
Overall, the liquidity ratios of Monarch Casino & Resort Inc highlight a mixed picture, with the company showing some improvement in its cash position but still facing challenges in managing its short-term liquidity needs efficiently.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -99.25 | -43.82 | 0.85 | 19.43 | 48.40 |
The cash conversion cycle of Monarch Casino & Resort Inc has shown a significant improvement over the years, decreasing from 48.40 days as of December 31, 2020, to -99.25 days as of December 31, 2024. This indicates that the company has been able to convert its investments in inventory and accounts receivable to cash at a much faster rate.
A negative cash conversion cycle suggests that Monarch Casino & Resort Inc is efficiently managing its working capital, potentially due to faster collection of receivables, better inventory management, or extended payables. This could be a positive sign, as the company can use this freed-up cash to reinvest in the business, repay debts, or distribute dividends to shareholders.
Overall, the trend of the cash conversion cycle for Monarch Casino & Resort Inc shows an improvement in the company's operational efficiency and financial management, contributing to its overall liquidity position. It is essential for investors and stakeholders to closely monitor these metrics to assess the company's ability to efficiently generate cash flow from its operations.