Monarch Casino & Resort Inc (MCRI)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	43,361	38,779	33,526	28,310	60,539
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	123,367	117,744	141,178	109,444	79,465
Cash ratio		0.35	0.33	0.24	0.26	0.76

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($43,361K + $—K) ÷ $123,367K
= 0.35

The cash ratio of Monarch Casino & Resort, Inc. has shown fluctuations over the past five years. The ratio, which represents the company's ability to cover its short-term liabilities with cash and cash equivalents, was relatively stable between 2020 and 2022, ranging from 0.34 to 0.40. However, there was a noticeable increase in the cash ratio in 2019, reaching 0.84, indicating a significant improvement in the company's liquidity position that year.

In 2021, the cash ratio decreased to 0.29, reflecting a potential liquidity challenge compared to the previous years. This decline could be attributed to various factors such as increased operating expenses, investments in growth opportunities, or changes in the company's cash management practices.

By the end of 2023, the cash ratio improved to 0.44, suggesting that Monarch Casino & Resort, Inc. may have taken steps to enhance its liquidity position. It is crucial for investors and stakeholders to monitor the cash ratio over time to assess the company's ability to meet its short-term obligations and its overall financial health.