Monarch Casino & Resort Inc (MCRI)

Debt-to-assets ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	5,500	8,000	41,000	51,000	—	—	43,837	58,511	68,152	85,792	114,900	142,455	167,162	171,864	181,684	173,049	175,400	155,850	132,510	110,520
Total assets	US$ in thousands	680,873	664,265	665,221	663,809	692,942	688,665	693,735	691,104	690,459	672,428	666,848	664,974	671,877	599,146	597,505	594,465	610,878	565,158	533,181	496,614
Debt-to-assets ratio		0.01	0.01	0.06	0.08	0.00	0.00	0.06	0.08	0.10	0.13	0.17	0.21	0.25	0.29	0.30	0.29	0.29	0.28	0.25	0.22

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $5,500K ÷ $680,873K
= 0.01

The debt-to-assets ratio for Monarch Casino & Resort, Inc. has exhibited some fluctuations over the past eight quarters. In Q4 2022 and Q1 2023, the company maintained a very low debt-to-assets ratio of 0.01, indicating a conservative capital structure with minimal debt relative to total assets. However, in Q2 2023, the ratio increased to 0.06 and further to 0.08 in Q1 2023, suggesting a higher proportion of debt funding compared to assets during these periods.

The spike in the debt-to-assets ratio from Q1 2023 to Q2 2023 may indicate increased borrowing or a reduction in asset values that led to a higher relative debt burden on the company. It is important for stakeholders to assess the reasons behind this change to understand the potential impact on the company's financial health and risk profile.

In general, a lower debt-to-assets ratio is considered favorable as it indicates less financial risk and a stronger ability to cover obligations using company assets. Monitoring the trend of this ratio over time can help investors and analysts evaluate the company's leverage, liquidity, and overall financial stability.