Monarch Casino & Resort Inc (MCRI)

Liquidity ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 0.61 0.54 0.58 0.50 0.76 0.58 0.61 0.59 0.60 0.56 0.61 0.60 0.67 0.84 0.93 0.89 1.00 0.75 0.64 0.62
Quick ratio 0.46 0.41 0.45 0.37 0.62 0.48 0.51 0.48 0.49 0.47 0.50 0.48 0.52 0.60 0.74 0.70 0.83 0.58 0.51 0.48
Cash ratio 0.35 0.29 0.33 0.30 0.33 0.24 0.23 0.25 0.24 0.24 0.23 0.21 0.26 0.51 0.63 0.63 0.76 0.47 0.41 0.39

The liquidity ratios of Monarch Casino & Resort, Inc. indicate the company's ability to meet its short-term obligations effectively.

The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been fluctuating over the quarters. The ratio has ranged from 0.50 to 0.76, with a downward trend overall. A current ratio below 1 suggests that the company may have difficulty meeting its short-term obligations if they all came due at once.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Similar to the current ratio, the quick ratio has shown fluctuations from 0.44 to 0.70, indicating that Monarch Casino & Resort, Inc. may struggle to meet its short-term obligations without relying on inventory.

The cash ratio, the most conservative liquidity ratio, focuses solely on cash and cash equivalents to cover short-term liabilities. Monarch Casino & Resort, Inc.'s cash ratio has varied from 0.28 to 0.44, with a notable increase in the most recent quarter. While an increase in the cash ratio is positive, the overall levels suggest that the company might have limited cash available to cover its short-term obligations.

Overall, the liquidity ratios of Monarch Casino & Resort, Inc. show mixed results, indicating potential challenges in meeting short-term obligations efficiently. It may be advisable for the company to closely monitor its liquidity position and take steps to improve its cash reserves to enhance its ability to meet financial commitments as they come due.

Additional liquidity measure

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days -43.89 -34.19 -19.23 -24.75 0.80 -11.17 -7.08 -23.71 -15.78 -7.17 6.14 24.78 34.84 -4.08 14.46 7.17 -9.67 -1.71 -4.56 -2.69

The cash conversion cycle for Monarch Casino & Resort, Inc. has shown fluctuations over the past eight quarters. The company has managed to maintain a negative cash conversion cycle, which indicates efficiency in managing its cash flow and working capital.

In Q4 2023, the cash conversion cycle improved to -94.74 days compared to the previous quarter at -89.94 days. This suggests that the company was able to convert its investments in inventory and accounts receivable into cash at a slightly faster rate. However, this improvement was not significant compared to Q2 2023, where the cash conversion cycle was at its lowest level for the period at -83.57 days.

Looking back at Q1 2022, the company experienced the highest cash conversion cycle at -97.96 days. Since then, there have been fluctuations, with some quarters showing better efficiency in cash conversion than others.

Overall, the negative cash conversion cycle indicates that Monarch Casino & Resort, Inc. is efficiently managing its cash flow and working capital, which can be a positive sign of operational efficiency and potential financial health. Monitoring these trends over time can provide insights into the company's ability to generate cash and manage its working capital effectively.