Monarch Casino & Resort Inc (MCRI)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 691,583 | 680,873 | 692,942 | 690,459 | 671,877 |
| Total stockholders’ equity | US$ in thousands | 517,748 | 513,140 | 538,954 | 448,014 | 368,067 |
| Financial leverage ratio | 1.34 | 1.33 | 1.29 | 1.54 | 1.83 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $691,583K ÷ $517,748K
= 1.34
The financial leverage ratio of Monarch Casino & Resort Inc shows a decreasing trend over the five-year period from 2020 to 2024. This ratio measures the extent to which the company utilizes debt financing to support its operations and growth.
In 2020, the financial leverage ratio was 1.83, indicating that the company had a high level of debt compared to its equity. However, this ratio decreased to 1.54 in 2021, 1.29 in 2022, and then slightly increased to 1.33 in 2023 and 1.34 in 2024.
The decreasing trend in the financial leverage ratio suggests that Monarch Casino & Resort Inc has been reducing its reliance on debt financing over the years, which may indicate a strengthening financial position and lower financial risk. However, the ratio still shows that the company has a significant level of debt relative to its equity, highlighting the importance of monitoring its debt levels and repayment capabilities in the future.
Peer comparison
Dec 31, 2024