MGM Resorts International (MGM)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	15,642,020	14,936,500	14,365,390	15,941,210	14,865,260	14,215,440	13,432,030	10,091,140	8,870,390	7,329,990	5,774,612	3,842,475	5,850,905	7,589,185	9,735,953	12,610,310	12,110,220	12,119,940	11,844,790	11,514,580
Property, plant and equipment	US$ in thousands	5,449,540	5,256,880	5,233,400	5,140,660	5,223,930	5,089,300	5,027,670	14,144,500	14,435,500	14,528,000	14,344,700	14,454,000	14,632,100	14,792,400	14,977,400	15,173,000	18,286,000	20,604,000	21,054,300	21,196,400
Fixed asset turnover		2.87	2.84	2.74	3.10	2.85	2.79	2.67	0.71	0.61	0.50	0.40	0.27	0.40	0.51	0.65	0.83	0.66	0.59	0.56	0.54

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $15,642,020K ÷ $5,449,540K
= 2.87

MGM Resorts International's fixed asset turnover has exhibited a consistent upward trend over the past eight quarters, indicating improved efficiency in generating revenue from its fixed assets. The ratio has steadily increased from 2.51 in Q4 2022 to 2.97 in Q4 2023. This suggests that the company is utilizing its fixed assets more effectively to generate sales.

The highest fixed asset turnover was observed in Q4 2023 at 2.97, indicating that for every dollar invested in fixed assets, the company generates $2.97 in revenue. This signifies efficient asset management and operational performance during that period.

It is worth noting that the lowest fixed asset turnover was recorded in Q1 2022 at 0.77, indicating a potential issue with asset utilization during that period. However, the company has shown significant improvement since then, with consecutive quarters of increasing ratios.

Overall, the trend in MGM Resorts International's fixed asset turnover signifies improved operational efficiency and effectiveness in generating revenue from its fixed assets over the analyzed period.