Monarch Casino & Resort Inc (MCRI)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 74,966 | 89,429 | 84,064 | 73,156 | 79,155 |
| Total current liabilities | US$ in thousands | 123,367 | 117,744 | 141,178 | 109,444 | 79,465 |
| Current ratio | 0.61 | 0.76 | 0.60 | 0.67 | 1.00 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $74,966K ÷ $123,367K
= 0.61
The current ratio of Monarch Casino & Resort, Inc. has shown fluctuations over the past five years. In 2023, the current ratio stands at 0.61, which indicates that the company may potentially face liquidity challenges in meeting its short-term obligations with its current assets. This is a notable decrease from the previous year's ratio of 0.76, suggesting a decline in the company's ability to cover its current liabilities.
Comparing the current ratio to 2021 and 2020, it is evident that the company's liquidity position has been weakening over time. In 2021, the current ratio was 0.60, followed by a slight improvement to 0.67 in 2020. However, the most significant decline was observed in 2019 when the current ratio stood at a healthy 1.00, indicating a relatively strong liquidity position.
Overall, the downward trend in the current ratio of Monarch Casino & Resort, Inc. raises concerns about the company's short-term solvency and its ability to efficiently manage its current assets and liabilities. It would be advisable for stakeholders to closely monitor the company's liquidity position and assess the effectiveness of its working capital management strategies to ensure financial stability in the future.
Peer comparison
Dec 31, 2023