Monarch Casino & Resort Inc (MCRI)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 5,500 | — | 68,152 | 167,162 |
| Total stockholders’ equity | US$ in thousands | 517,748 | 513,140 | 538,954 | 448,014 | 368,067 |
| Debt-to-capital ratio | 0.00 | 0.01 | 0.00 | 0.13 | 0.31 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $517,748K)
= 0.00
Based on the data provided, Monarch Casino & Resort Inc's debt-to-capital ratio has shown a significant downward trend over the past five years.
As of December 31, 2020, the debt-to-capital ratio was relatively high at 0.31, indicating that a significant portion of the company's capital structure was funded by debt. However, by the end of December 31, 2021, the ratio had decreased to 0.13, suggesting that the company had reduced its reliance on debt financing.
Furthermore, in the subsequent years, the debt-to-capital ratio continued to decline dramatically, reaching 0.00 by December 31, 2022 and remaining at 0.00 for December 31, 2024. This indicates that Monarch Casino & Resort Inc had effectively eliminated its debt and was primarily financed by equity during those years.
The decreasing trend in the debt-to-capital ratio suggests that the company has been successful in reducing its debt levels in relation to its total capital. This improvement may enhance the company's financial stability, reduce financial risks, and potentially improve investor confidence in its operations.
Peer comparison
Dec 31, 2024