Monarch Casino & Resort Inc (MCRI)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 72,769 | 82,448 | 87,479 | 68,488 | 23,678 |
| Total stockholders’ equity | US$ in thousands | 517,748 | 513,140 | 538,954 | 448,014 | 368,067 |
| ROE | 14.05% | 16.07% | 16.23% | 15.29% | 6.43% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $72,769K ÷ $517,748K
= 14.05%
Based on the provided data, Monarch Casino & Resort Inc's return on equity (ROE) has shown an upward trend over the past five years.
In December 31, 2020, the ROE was 6.43%, indicating a relatively low return on equity for that year. However, in the subsequent years, there was a significant improvement in the company's performance. By December 31, 2021, the ROE had almost tripled to 15.29%, reflecting a substantial increase in profitability relative to shareholders' equity.
The positive momentum continued in the following years, with the ROE reaching 16.23% by December 31, 2022, indicating that the company was becoming more efficient in generating profits from the shareholders' investment. Although there was a slight dip in the ROE to 16.07% by December 31, 2023, the overall performance remained strong.
However, by December 31, 2024, the ROE had declined to 14.05%, suggesting a potential slowdown in the company's ability to generate returns on equity compared to the previous years.
Overall, the upward trend in Monarch Casino & Resort Inc's return on equity from 2020 to 2023 demonstrates an improvement in the company's profitability and efficiency in utilizing shareholders' equity. However, the decrease in ROE in 2024 indicates a need for further analysis to understand the factors contributing to this decline.
Peer comparison
Dec 31, 2024