Monarch Casino & Resort Inc (MCRI)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	-72,217	-8,871	-730	176	-57,594
Total assets	US$ in thousands	691,583	680,873	692,942	690,459	671,877
Operating ROA		-10.44%	-1.30%	-0.11%	0.03%	-8.57%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $-72,217K ÷ $691,583K
= -10.44%

Operating ROA is a key financial ratio that measures a company's profitability in generating operating income from its assets. Monarch Casino & Resort Inc's operating ROA has been fluctuating over the past five years:

1. As of December 31, 2020, the operating ROA was -8.57%, indicating that the company had a negative return on its assets, indicating inefficiency in generating operating income from its assets.

2. By December 31, 2021, the operating ROA improved significantly to 0.03%, although still very low, showing a slight turnaround in asset utilization and profitability.

3. The operating ROA decreased to -0.11% as of December 31, 2022, signifying a slight decline in the company's ability to generate operating income relative to its asset base.

4. The trend continued to worsen as of December 31, 2023, with the operating ROA dropping further to -1.30%, indicating a significant decline in profitability and asset efficiency.

5. The most recent data as of December 31, 2024, shows a substantial decrease in operating ROA to -10.44%, suggesting a considerable decrease in the company's ability to generate operating income from its assets, potentially raising concerns about operational efficiency and profitability.

Overall, the fluctuating and mostly negative trend in Monarch Casino & Resort Inc's operating ROA over the past five years reflects challenges in effectively utilizing its assets to drive profitability. It may indicate a need for the company to review its operational strategies and improve asset management to enhance financial performance in the future.