Monarch Casino & Resort Inc (MCRI)

Financial leverage ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	680,873	664,265	665,221	663,809	692,942	688,665	693,735	691,104	690,459	672,428	666,848	664,974	671,877	599,146	597,505	594,465	610,878	565,158	533,181	496,614
Total stockholders’ equity	US$ in thousands	513,140	502,447	481,812	463,406	538,954	515,370	486,336	465,189	448,014	424,395	401,087	379,910	368,067	353,530	340,422	344,094	341,201	332,693	321,125	310,157
Financial leverage ratio		1.33	1.32	1.38	1.43	1.29	1.34	1.43	1.49	1.54	1.58	1.66	1.75	1.83	1.69	1.76	1.73	1.79	1.70	1.66	1.60

December 31, 2023 calculation

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

The financial leverage ratio of Monarch Casino & Resort, Inc. has fluctuated over the past eight quarters, ranging from 1.29 to 1.49. This ratio indicates that the company's capital structure is moderately leveraged, with debt representing a significant portion of its overall capital.

A ratio above 1 suggests that the company has more debt in its capital structure than equity. The trend of increasing leverage ratios from Q4 2022 to Q1 2023 may indicate that the company has been taking on more debt to finance its operations or growth initiatives during this period.

It is essential for investors and analysts to closely monitor the financial leverage ratio of the company to assess its ability to meet its debt obligations and evaluate the associated risks. Additionally, a higher leverage ratio may indicate increased financial risk and vulnerability to economic downturns or interest rate fluctuations.