Monarch Casino & Resort Inc (MCRI)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Debt-to-capital ratio		0.01	0.00	0.13	0.31	0.34

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $5,500K ÷ ($5,500K + $513,140K)
= 0.01

The debt-to-capital ratio of Monarch Casino & Resort, Inc. has been decreasing steadily over the years, indicating an improving financial position in terms of leverage. As of December 31, 2023, the ratio stands at 0.01, which suggests that only 1% of the company's capital structure is financed by debt, while the remaining 99% is funded by equity. This low level of debt relative to capital indicates a conservative approach to financing operations and investments, reducing the company's financial risk and increasing its solvency.

The trend of decreasing debt-to-capital ratio from 2019 to 2023 reflects a strategic shift towards a more equity-based capital structure, which may have resulted from a focus on reducing debt obligations, generating internal funds, or attracting equity investors. By maintaining a low debt-to-capital ratio, Monarch Casino & Resort, Inc. is likely enhancing its financial flexibility, reducing interest expenses, and demonstrating a strong financial position to investors and creditors.

Overall, the consistently low debt-to-capital ratio of Monarch Casino & Resort, Inc. signals a healthy balance between debt and equity financing, positioning the company well for sustainable growth and financial stability in the long term.