Monarch Casino & Resort Inc (MCRI)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.01 | 0.00 | 0.10 | 0.25 | 0.29 |
| Debt-to-capital ratio | 0.01 | 0.00 | 0.13 | 0.31 | 0.34 |
| Debt-to-equity ratio | 0.01 | 0.00 | 0.15 | 0.45 | 0.51 |
| Financial leverage ratio | 1.33 | 1.29 | 1.54 | 1.83 | 1.79 |
The solvency ratios of Monarch Casino & Resort, Inc. indicate the company's ability to meet its long-term financial obligations and the extent to which it relies on debt financing.
The debt-to-assets ratio has consistently remained low over the years, decreasing from 0.32 in 2019 to 0.01 in 2023. This suggests that the company has a very low level of debt relative to its total assets, which is a positive sign for creditors and investors.
Similarly, the debt-to-capital ratio and debt-to-equity ratio have also shown a decreasing trend over the years, falling from 0.36 and 0.57 in 2019 to 0.01 in 2023. This indicates that Monarch Casino & Resort relies less on debt and has a stronger capital and equity base compared to its debt.
The financial leverage ratio, which indicates the extent to which the company is using debt in its capital structure, has also decreased from 1.79 in 2019 to 1.33 in 2023. This implies that the company has reduced its reliance on debt financing and has a lower level of financial risk.
Overall, the solvency ratios for Monarch Casino & Resort, Inc. demonstrate a healthy financial position with a conservative debt structure and a strong ability to meet its long-term obligations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 354.51 | 71.75 | 87.23 | 2.98 | 7.24 |
The interest coverage ratio for Monarch Casino & Resort, Inc. has shown a fluctuating trend over the past five years. In 2023, the interest coverage ratio improved significantly to 67.79, indicating the company's enhanced ability to meet its interest obligations comfortably. This substantial increase from the previous year's ratio of 46.05 suggests a positive change in the company's financial health and operational efficiency.
In 2022, the interest coverage ratio was 46.05, which was also a strong indicator of the company's ability to cover its interest expenses with operating income. The ratio was lower than in 2023 but still reflective of a healthy financial position.
The interest coverage ratio for Monarch Casino & Resort, Inc. was significantly lower in 2021 at 19.95, which may signal increased financial risk due to a lower capacity to cover interest payments from operating profits. However, it is worth noting that the company still managed to comfortably cover its interest obligations, though not as well as in the subsequent years.
In 2020, the interest coverage ratio improved to 55.94, indicating a better position compared to 2021. This improvement suggests that the company made strides in managing its interest expenses relative to its operating income.
Unfortunately, only partial data is available for 2019, but considering the improving trend in subsequent years, it can be inferred that Monarch Casino & Resort, Inc. had a satisfactory interest coverage ratio during that period.
Overall, Monarch Casino & Resort, Inc.'s interest coverage ratio has generally shown positive signs of financial stability and effective management of interest expenses, with 2023 standing out as a particularly strong year in this regard.