Monarch Casino & Resort Inc (MCRI)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	43,361	38,779	33,526	28,310	60,539
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	12,996	34,555	35,827	28,630	5,643
Total current liabilities	US$ in thousands	123,367	117,744	141,178	109,444	79,465
Quick ratio		0.46	0.62	0.49	0.52	0.83

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($43,361K + $—K + $12,996K) ÷ $123,367K
= 0.46

The quick ratio of Monarch Casino & Resort, Inc. has shown fluctuation over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.

In 2023, the quick ratio decreased to 0.55 from 0.70 in 2022, suggesting a decline in the company's ability to cover its short-term obligations with liquid assets. This could raise concerns about the company's liquidity position and its ability to pay off current obligations without relying on inventory.

The quick ratio was below 1 in 2021 and 2023, indicating potential liquidity challenges in those years. However, the quick ratio improved in 2019 to 0.91, reflecting a better ability to meet short-term obligations with liquid assets.

Overall, the trend of the quick ratio for Monarch Casino & Resort, Inc. indicates some variability in its liquidity position over the years, with a recent decrease in 2023. Management may need to monitor and potentially improve the company's liquidity management to ensure it can meet its short-term obligations effectively.