MGM Resorts International (MGM)

Short-term

Turnover ratios

Based on the provided data, let's analyze MGM Resorts International's activity ratios:

1. Inventory Turnover:
- MGM Resorts International's inventory turnover has been steadily increasing over the years, indicating the company's ability to sell its inventory efficiently. The ratio has improved from 39.09 in 2020 to 66.83 in 2024, showing that the company is managing its inventory more effectively and turning over its inventory at a faster rate.

2. Receivables Turnover:
- Unfortunately, there is no data available for the receivables turnover ratio for MGM Resorts International for the given years. This lack of information makes it difficult to assess how efficiently the company is collecting its receivables from customers.

3. Payables Turnover:
- Similar to receivables turnover, there is no data provided for the payables turnover ratio for MGM Resorts International. Without this information, it is challenging to determine how quickly the company is paying its suppliers and managing its payables.

4. Working Capital Turnover:
- MGM Resorts International's working capital turnover has shown a significant improvement over the years, increasing from 1.26 in 2020 to 17.04 in 2024. This indicates that the company is generating more revenue relative to its working capital, reflecting strong operational efficiency and effective utilization of its working capital to generate sales.

Overall, while MGM Resorts International has demonstrated impressive improvements in inventory turnover and working capital turnover ratios, the lack of data for receivables turnover and payables turnover limits a comprehensive analysis of the company's overall efficiency in managing its accounts receivable and accounts payable.

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Average number of days

MGM Resorts International's activity ratios provide insights into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH):
- MGM's DOH has shown a decreasing trend over the years, indicating that the company is managing its inventory more efficiently.
- In 2024, MGM had 5.46 days of inventory on hand, which suggests that the company is able to sell its inventory quickly or has streamlined its inventory management processes.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on MGM's DSO, which is typically used to evaluate how quickly the company collects its accounts receivable. A lower DSO is generally favorable as it indicates faster cash conversion.

3. Number of Days of Payables:
- The information on MGM's days of payables is not available, which is an important metric to assess how long the company takes to pay its suppliers. A higher number of days of payables can indicate better liquidity management.

In summary, MGM Resorts International appears to be efficiently managing its inventory based on the decreasing trend in the Days of Inventory on Hand. However, without data on Days of Sales Outstanding and Number of Days of Payables, a comprehensive analysis of the company's overall activity ratios is limited.

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Long-term

The Fixed Asset Turnover ratio for MGM Resorts International has shown a gradual improvement over the years, increasing from 0.35 in December 2020 to 0.44 in December 2022. This indicates that the company is generating more revenue from its fixed assets, such as property, plant, and equipment.

On the other hand, the Total Asset Turnover ratio has also been steadily increasing from 0.14 in December 2020 to 0.41 in December 2024. This suggests that MGM Resorts International is becoming more efficient in generating revenue from all its assets, including both fixed and current assets.

Overall, the increasing trend in both Fixed Asset Turnover and Total Asset Turnover ratios indicates that MGM Resorts International is effectively utilizing its assets to generate sales and improve its operational efficiency over the years.