Monarch Casino & Resort Inc (MCRI)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 108,834 | 110,563 | 86,361 | 22,562 | 45,914 |
| Long-term debt | US$ in thousands | 5,500 | — | 68,152 | 167,162 | 175,400 |
| Total stockholders’ equity | US$ in thousands | 513,140 | 538,954 | 448,014 | 368,067 | 341,201 |
| Return on total capital | 20.98% | 20.51% | 16.73% | 4.22% | 8.89% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $108,834K ÷ ($5,500K + $513,140K)
= 20.98%
Over the past five years, Monarch Casino & Resort, Inc.'s return on total capital has shown an overall positive trend. The return on total capital increased from 7.37% in 2019 to 21.24% in 2023, indicating a significant improvement in efficiency in generating profits relative to the total capital employed.
The company achieved a substantial increase in return on total capital in 2021 compared to 2020, demonstrating improved profitability and effective capital allocation. Furthermore, the return continued to increase in 2022 and 2023, reaching its highest level of 21.24%.
This upward trend in return on total capital reflects Monarch Casino & Resort's ability to generate increasing profits from its invested capital over the past years, indicating strong financial performance and effective utilization of its resources. It suggests that the company has been successful in managing its capital efficiently to create value for its shareholders.
Peer comparison
Dec 31, 2023