Monarch Casino & Resort Inc (MCRI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 17.72% | 21.99% | 23.39% | 22.73% | 8.28% |
| Operating profit margin | -13.84% | -1.77% | -0.15% | 0.04% | -31.23% |
| Pretax margin | 17.70% | 21.66% | 22.88% | 21.59% | 8.13% |
| Net profit margin | 13.94% | 16.46% | 18.36% | 17.32% | 12.84% |
Monarch Casino & Resort Inc's gross profit margin has shown a positive trend over the years, improving from 8.28% in 2020 to 23.39% in 2022 before slightly decreasing to 17.72% in 2024. This indicates the company's ability to efficiently control its production costs and generate profits from its core operations.
However, the operating profit margin has been volatile, starting from a significant loss of -31.23% in 2020 to a small positive margin of 0.04% in 2021, but then fluctuating negatively to -13.84% in 2024. This suggests that the company may have faced challenges in managing its operating expenses efficiently.
The pretax margin has generally remained stable around the range of 17-23% over the years, indicating that Monarch Casino & Resort Inc has been able to effectively manage its overall expenses and generate profits before taxes.
The net profit margin, which represents the company's bottom-line profitability, has also shown a decreasing trend from 12.84% in 2020 to 13.94% in 2024. This suggests that while the company has been profitable, its net income as a percentage of revenue has been gradually declining, which could be a point of concern for investors.
In conclusion, while Monarch Casino & Resort Inc has demonstrated improvements in its gross profit margin, there are challenges reflected in the operating profit margin and net profit margin, indicating the need for the company to focus on controlling its operating expenses more effectively to enhance overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -10.44% | -1.30% | -0.11% | 0.03% | -8.57% |
| Return on assets (ROA) | 10.52% | 12.11% | 12.62% | 9.92% | 3.52% |
| Return on total capital | -13.95% | 20.98% | 20.51% | 16.73% | 4.22% |
| Return on equity (ROE) | 14.05% | 16.07% | 16.23% | 15.29% | 6.43% |
Monarch Casino & Resort Inc's profitability ratios depict varying trends over the five-year period from 2020 to 2024.
1. Operating return on assets (Operating ROA) fluctuated significantly, starting at -8.57% in 2020 and fluctuating between negative and slightly positive percentages until 2024, where it experienced a drastic decline to -10.44%. This indicates that the company's operating income generated per dollar of assets was inconsistent and generally low over the period.
2. Return on assets (ROA) shows a more positive trend, increasing from 3.52% in 2020 to a peak of 12.62% in 2022, before slightly decreasing to 10.52% in 2024. This ratio signifies that the company's overall profitability in generating earnings from its total assets improved over the years.
3. Return on total capital presented a mix of performance, with an upward trajectory from 4.22% in 2020 to a peak of 20.98% in 2023, then dropping to -13.95% in 2024. The negative ratio in 2024 suggests that the company experienced a decline in profitability concerning the total capital invested in its operations.
4. Return on equity (ROE) witnessed a positive trend, rising from 6.43% in 2020 to a peak of 16.23% in 2022, before slightly declining to 14.05% in 2024. This metric reflects the return generated for shareholders and indicates the company's ability to generate profits from shareholder equity.
Overall, while some profitability ratios displayed improvement over the years, especially in ROA and ROE, the fluctuating nature of Operating ROA and the sharp decline in Return on total capital in 2024 suggest potential operational and capital structure challenges that may require attention and strategic management decisions to enhance overall profitability.