Monarch Casino & Resort Inc (MCRI)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -72,217 | 108,834 | 110,563 | 86,361 | 22,562 |
| Interest expense | US$ in thousands | 104 | 307 | 1,541 | 990 | 7,564 |
| Interest coverage | -694.39 | 354.51 | 71.75 | 87.23 | 2.98 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $-72,217K ÷ $104K
= -694.39
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates that the company is more capable of meeting its interest obligations. Looking at the trend for Monarch Casino & Resort Inc over the years:
- As of December 31, 2020, the interest coverage ratio was 2.98, indicating that the company's earnings were sufficient to cover its interest payments nearly three times. This suggests a moderate ability to meet interest expenses.
- By December 31, 2021, the interest coverage ratio significantly improved to 87.23, reflecting a substantial increase in earnings relative to the interest costs. This indicates a strong capability to cover interest payments comfortably.
- The trend continued positively through the following years, with ratios of 71.75, 354.51, and -694.39 for December 31, 2022, 2023, and 2024, respectively. Despite a temporary anomaly in 2024 resulting in a negative ratio, the overall trend shows a significant improvement in the company's ability to cover interest expenses.
Overall, the interest coverage ratio for Monarch Casino & Resort Inc has shown variability, but there has been a notable improvement in the company's capacity to service its interest obligations, with higher ratios indicating a healthier financial position in recent years.
Peer comparison
Dec 31, 2024