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.