Monarch Casino & Resort Inc (MCRI)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	680,873	692,942	690,459	671,877	610,878
Total stockholders’ equity	US$ in thousands	513,140	538,954	448,014	368,067	341,201
Financial leverage ratio		1.33	1.29	1.54	1.83	1.79

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $680,873K ÷ $513,140K
= 1.33

Monarch Casino & Resort, Inc.'s financial leverage ratio has exhibited fluctuating trends over the past five years. The ratio decreased from 1.79 in 2019 to 1.54 in 2021 before dropping further to 1.29 in 2022. However, in 2023, the ratio increased to 1.33. This indicates that the company has been utilizing a mix of debt and equity to finance its operations and investments, with a decrease in leverage in 2021 and 2022 suggesting a potential deleveraging strategy or a shift towards more equity funding. The increase in the leverage ratio in 2023 may signify either an increase in debt usage or a decrease in equity, which could have implications on the company's risk profile and financial stability. Further analysis of the company's capital structure and debt management policies would be necessary to fully understand the reasons behind these fluctuations and their potential impact on the company's financial performance and risk exposure.