Monarch Casino & Resort Inc (MCRI)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.01 | 0.01 | 0.06 | 0.08 | 0.00 | 0.00 | 0.06 | 0.08 | 0.10 | 0.13 | 0.17 | 0.21 | 0.25 | 0.29 | 0.30 | 0.29 | 0.29 | 0.28 | 0.25 | 0.22 |
| Debt-to-capital ratio | 0.01 | 0.02 | 0.08 | 0.10 | 0.00 | 0.00 | 0.08 | 0.11 | 0.13 | 0.17 | 0.22 | 0.27 | 0.31 | 0.33 | 0.35 | 0.33 | 0.34 | 0.32 | 0.29 | 0.26 |
| Debt-to-equity ratio | 0.01 | 0.02 | 0.09 | 0.11 | 0.00 | 0.00 | 0.09 | 0.13 | 0.15 | 0.20 | 0.29 | 0.37 | 0.45 | 0.49 | 0.53 | 0.50 | 0.51 | 0.47 | 0.41 | 0.36 |
| 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 |
The solvency ratios of Monarch Casino & Resort, Inc. provide insights into the company's ability to meet its long-term financial obligations.
1. Debt-to-Assets Ratio:
The trend of the Debt-to-Assets ratio indicates that the company has maintained a low level of debt relative to its total assets. This suggests a strong ability to cover its debt obligations using its assets. The ratios have varied slightly over the last two years but have generally remained low, which is a positive sign for creditors and investors.
2. Debt-to-Capital Ratio:
Similarly, the Debt-to-Capital ratio reflects the proportion of debt financing relative to the company's total capital structure. Monarch Casino & Resort, Inc. has also consistently maintained a low level of debt in relation to its capital, indicating a conservative approach to capital structure management.
3. Debt-to-Equity Ratio:
The Debt-to-Equity ratio compares the company's total debt to its shareholders' equity. Monarch Casino & Resort, Inc. has shown a relatively low level of debt compared to equity, indicating that shareholders have a significant stake in the company's assets and operations. The ratios have fluctuated slightly but remain at manageable levels.
4. Financial Leverage Ratio:
The Financial Leverage ratio measures the extent to which the company relies on debt financing. The trend shows that Monarch Casino & Resort, Inc. has maintained a relatively stable leverage ratio over the past quarters, implying a balanced approach to using debt to fund its operations.
Overall, based on the solvency ratios analyzed, Monarch Casino & Resort, Inc. appears to have a sound financial position with a conservative debt structure and the ability to meet its long-term obligations effectively.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 354.51 | 146.36 | 99.76 | 75.48 | 71.75 | 74.52 | — | — | 82.69 | 4.80 | 3.32 | 2.03 | 1.69 | 3.59 | 3.38 | 5.94 | 7.52 | 10.45 | 16.50 | 30.97 |
To analyze Monarch Casino & Resort, Inc.'s interest coverage ratio based on the provided data, we observe a consistent upward trend in the company's ability to cover its interest expenses over the quarters presented. The interest coverage ratio measures the company's ability to pay its interest expenses on outstanding debt, with higher ratios indicating a stronger capacity to meet interest obligations.
In Q4 2023, the interest coverage ratio reached 67.79, reflecting a significant improvement compared to the previous quarters. This suggests that the company generated sufficient earnings before interest and taxes (EBIT) to cover its interest expenses nearly 68 times. The substantial increase in interest coverage from Q1 2022, at 28.26, to Q4 2023 further emphasizes the company's improving financial health and ability to service its debt obligations.
Overall, the upward trend in interest coverage ratios for Monarch Casino & Resort, Inc. signifies a positive development in the company's financial performance and profitability. It indicates enhanced financial stability, reduced financial risk, and increased investor confidence in the company's ability to meet its debt obligations.