Monarch Casino & Resort Inc (MCRI)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -72,217 | 108,834 | 110,563 | 86,361 | 22,562 |
| Long-term debt | US$ in thousands | — | 5,500 | — | 68,152 | 167,162 |
| Total stockholders’ equity | US$ in thousands | 517,748 | 513,140 | 538,954 | 448,014 | 368,067 |
| Return on total capital | -13.95% | 20.98% | 20.51% | 16.73% | 4.22% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-72,217K ÷ ($—K + $517,748K)
= -13.95%
The return on total capital for Monarch Casino & Resort Inc has shown a fluctuating trend over the years. As of December 31, 2020, the return on total capital was 4.22%, indicating a relatively low profitability relative to the capital invested. However, there was a significant improvement in the subsequent years, with the return on total capital increasing to 16.73% by December 31, 2021, and further to 20.51% by December 31, 2022.
The company's management seemed to have effectively utilized its total capital to generate higher returns during these periods. By the end of December 31, 2023, the return on total capital continued to rise to 20.98%, demonstrating sustained profitability and efficiency in capital allocation. However, there was a sharp decline in the return on total capital to -13.95% by December 31, 2024, which could be a concerning sign.
Overall, the company has shown a mix of positive and negative performance in terms of return on total capital over the years, indicating varying levels of profitability and efficiency in utilizing its overall capital resources. This metric is crucial for assessing how effectively the company generates returns from the total amount of capital invested in its operations.
Peer comparison
Dec 31, 2024