MGM Resorts International (MGM)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,596,400 | 14,822,700 | 8,908,930 | 5,851,180 | 14,531,600 |
| Property, plant and equipment | US$ in thousands | 5,449,540 | 5,223,930 | 14,435,500 | 14,632,100 | 18,286,000 |
| Fixed asset turnover | 2.86 | 2.84 | 0.62 | 0.40 | 0.79 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $15,596,400K ÷ $5,449,540K
= 2.86
The fixed asset turnover ratio for MGM Resorts International has shown a fluctuating trend over the past five years, indicating the company's ability to generate revenue from its investment in fixed assets. In 2023, the fixed asset turnover ratio improved significantly to 2.97 from 2.51 in 2022, reaching its highest point in the period analyzed. This implies that MGM Resorts International was able to generate $2.97 in revenue for every $1 invested in fixed assets during 2023, showcasing efficient utilization of its property, plant, and equipment to drive revenue.
The substantial increase in the fixed asset turnover ratio from 2022 to 2023 suggests an improvement in operational efficiency and asset utilization within the company. This uptrend can be indicative of better management of the company's fixed assets to drive sales and enhance overall profitability.
Comparing the 2023 ratio to the ratios in 2021, 2020, and 2019, where the fixed asset turnover was significantly lower, MGM Resorts International has demonstrated a notable enhancement in leveraging its fixed assets to generate revenue. This improvement signifies potential enhancements in operational processes, such as optimizing asset utilization, increasing production efficiency, or enhancing sales performance.
Overall, the upward trend in the fixed asset turnover ratio for MGM Resorts International is a positive indicator of the company's ability to efficiently generate revenue from its investment in fixed assets, reflecting improved operational efficiency and potentially stronger financial performance in the given period.
Peer comparison
Dec 31, 2023