Monarch Casino & Resort Inc (MCRI)
Debt-to-equity 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-equity ratio | 0.00 | 0.01 | 0.00 | 0.15 | 0.45 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $517,748K
= 0.00
The debt-to-equity ratio of Monarch Casino & Resort Inc has shown a significant decrease over the years, indicating a positive trend towards a more conservative financial structure. As of December 31, 2020, the ratio stood at 0.45, indicating that the company had $0.45 in debt for every $1 of equity. By December 31, 2021, the ratio had decreased to 0.15, showcasing a reduction in the level of debt relative to equity.
The trend continued with the ratio dropping to 0.00 by December 31, 2022, signaling that the company had no debt on its balance sheet relative to its equity. This is a noteworthy achievement as it indicates a strong financial position with minimal reliance on borrowed funds. The trend was maintained in the following years with the ratio remaining low at 0.01 by December 31, 2023 and 0.00 by December 31, 2024.
Overall, the decreasing trend in the debt-to-equity ratio reflects prudent financial management by Monarch Casino & Resort Inc, showcasing a healthy balance between debt and equity and a reduced financial risk. It suggests that the company has been able to finance its operations and growth primarily through equity, which can enhance its financial stability and flexibility in the long term.
Peer comparison
Dec 31, 2024