Monarch Casino & Resort Inc (MCRI)

Debt-to-equity 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-equity ratio		0.01	0.00	0.15	0.45	0.51

December 31, 2023 calculation

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

The debt-to-equity ratio of Monarch Casino & Resort, Inc. has shown a decreasing trend over the last five years. As of December 31, 2023, the company's debt-to-equity ratio stands at 0.01, indicating a very conservative capital structure with minimal reliance on debt. This suggests that the company primarily finances its operations through equity rather than debt, which can be viewed positively by investors and creditors as it reduces financial risk.

Comparing this to the previous years, the ratio remained low and stable at 0.01 in both 2022 and 2021, indicating a consistent financial strategy of maintaining a strong equity position relative to debt. However, it's worth noting a significant decrease in the debt-to-equity ratio from 0.20 in 2021 to 0.01 in 2022, which could indicate a deliberate effort by the company to reduce its debt levels and improve its financial stability.

In contrast, the higher ratios of 0.49 in 2020 and 0.57 in 2019 suggest that the company had higher levels of debt relative to equity in those years. This could signal a shift in the company's capital structure over time, possibly due to strategic decisions or external factors impacting its financial position.

Overall, the consistent low debt-to-equity ratio in recent years reflects Monarch Casino & Resort, Inc.'s conservative approach to financing its operations, which may indicate a lower financial risk profile and a stronger financial position compared to periods of higher leverage.