Monarch Casino & Resort Inc (MCRI)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.01 | 0.00 | 0.10 | 0.25 |
| Debt-to-capital ratio | 0.00 | 0.01 | 0.00 | 0.13 | 0.31 |
| Debt-to-equity ratio | 0.00 | 0.01 | 0.00 | 0.15 | 0.45 |
| Financial leverage ratio | 1.34 | 1.33 | 1.29 | 1.54 | 1.83 |
The solvency ratios of Monarch Casino & Resort Inc indicate a strong financial position and low risk of insolvency. The Debt-to-assets ratio has significantly decreased from 0.25 in 2020 to 0.00 in 2022, with a slight increase to 0.01 in 2023 and 2024, suggesting the company's ability to cover its liabilities with its assets has improved over the years.
Similarly, the Debt-to-capital ratio has shown a substantial decrease from 0.31 in 2020 to 0.00 in 2022, remaining at this low level in 2023 and 2024. This indicates that the company has reduced its dependence on debt financing and has a strong capital base to support its operations.
The Debt-to-equity ratio has also displayed a significant decline from 0.45 in 2020 to 0.00 in 2022, with a minor increase to 0.01 in 2023 and 2024. This trend reflects a lower level of financial risk as the company relies more on equity rather than debt to finance its operations.
Furthermore, the Financial leverage ratio has decreased gradually from 1.83 in 2020 to 1.34 in 2024, signifying that the company has been effectively managing its debt levels relative to its equity. Overall, these solvency ratios reflect Monarch Casino & Resort Inc's strong financial health and ability to meet its financial obligations efficiently.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -694.39 | 354.51 | 71.75 | 87.23 | 2.98 |
Based on the data provided, the interest coverage ratio of Monarch Casino & Resort Inc has shown significant fluctuations over the years.
As of December 31, 2020, the interest coverage ratio was 2.98, indicating that the company's operating income was just sufficient to cover its interest expenses. However, by December 31, 2021, the interest coverage ratio had improved substantially to 87.23, reflecting a much stronger ability to meet its interest obligations.
In the following years, the interest coverage ratio remained relatively high, at 71.75 as of December 31, 2022, and a significant increase to 354.51 as of December 31, 2023. This suggests the company experienced a substantial increase in operating income relative to its interest expenses during these periods.
However, by December 31, 2024, the interest coverage ratio took a sharp downturn, falling to -694.39. A negative interest coverage ratio indicates that the company's operating income is insufficient to cover its interest expenses, which raises concerns about the company's financial health and ability to meet its debt obligations.
Overall, the trend in Monarch Casino & Resort Inc's interest coverage ratio shows both improvements and setbacks over the years, highlighting the importance of closely monitoring the company's financial performance and debt management practices.