Monarch Casino & Resort Inc (MCRI)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 0.62 0.57 0.45 0.51 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
Quick ratio 0.48 0.43 0.33 0.38 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
Cash ratio 0.40 0.33 0.25 0.30 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

Monarch Casino & Resort Inc's liquidity ratios show fluctuations over the reported periods. The current ratio, which measures the company's ability to cover its short-term obligations with current assets, declined from 0.89 on March 31, 2020, to 0.62 on December 31, 2024. This downward trend indicates a potential weakening liquidity position.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also experienced a decrease from 0.70 on March 31, 2020, to 0.48 on December 31, 2024. The declining trend in the quick ratio suggests a constrained ability to meet short-term obligations without relying on inventory.

The cash ratio, representing the most conservative liquidity measure by considering only cash and cash equivalents to cover current liabilities, ranged from 0.63 on June 30, 2020, to 0.40 on December 31, 2024. This indicates a decreasing trend in the company's ability to cover its short-term obligations with readily available cash.

Overall, Monarch Casino & Resort Inc's liquidity ratios demonstrate a concerning trend of decreasing liquidity over the reported periods. Management may need to closely monitor and assess its liquidity position to ensure the company can meet its short-term financial obligations effectively.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days -99.31 -10.50 -22.96 -40.26 -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

The cash conversion cycle is an essential metric for assessing how efficiently a company manages its working capital. It represents the time it takes for a company to convert its investments in inventory and accounts receivable into cash flows from sales. Negative values indicate that the company is able to collect cash from customers before paying its suppliers, which is generally favorable.

Analyzing the cash conversion cycle of Monarch Casino & Resort Inc over the past few years, we notice fluctuations in the values. From March 31, 2020, to December 31, 2020, the company's cash conversion cycle increased significantly from 7.17 days to 34.84 days, indicating a longer period to convert investments into cash. Subsequently, from March 31, 2021, to June 30, 2024, the cash conversion cycle showed negative values, representing a trend where the company was able to convert investments into cash at a faster rate.

However, the extreme negative values seen towards the end of the data indicate an anomaly that may not be sustainable over the long term. It is important for Monarch Casino & Resort Inc to monitor and manage its cash conversion cycle effectively to ensure optimal utilization of working capital and maintain financial stability. Further analysis of operational efficiency and liquidity management may provide insights into the company's overall financial health.