Monarch Casino & Resort Inc (MCRI)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	108,834	110,563	86,361	22,562	45,914
Interest expense	US$ in thousands	307	1,541	990	7,564	6,338
Interest coverage		354.51	71.75	87.23	2.98	7.24

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $108,834K ÷ $307K
= 354.51

The interest coverage ratio of Monarch Casino & Resort, Inc. has shown a fluctuating trend over the past five years, indicating varying levels of ability to cover interest expenses with operating income.

In particular, the interest coverage ratio was exceptionally high in 2023 at 67.79, indicating a strong ability to meet interest obligations from operating profits. This significant increase from the previous year suggests improved financial health and increased profitability.

The ratio in 2022 was 46.05, reflecting a slight decline from the previous year but still showing a relatively comfortable position in meeting interest payments. In 2021, the interest coverage ratio was 19.95, indicating a significant increase in the ability to cover interest expenses compared to the prior year.

The ratio in 2020 stands at 55.94, which is a healthy level and suggests improved financial performance compared to the previous year. Notably, data for 2019 is not available for comparison.

Overall, the interest coverage ratio of Monarch Casino & Resort, Inc. demonstrates a generally positive trend over the years, with occasional fluctuations but maintaining a strong ability to cover interest expenses with operating income.