MGM Resorts International (MGM)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	17,240,550	17,269,550	17,059,590	16,674,420	16,164,250	15,380,910	14,823,800	14,146,480	13,127,490	12,592,160	11,883,630	10,886,700	9,680,140	8,116,790	6,535,170	4,557,019	5,162,089	6,853,689	9,042,149	11,975,580
Property, plant and equipment	US$ in thousands	—	—	—	—	—	29,407,200	5,233,400	5,140,660	29,754,900	5,089,300	5,027,670	14,144,500	25,928,300	14,528,000	22,553,700	14,454,000	14,632,100	14,792,400	14,977,400	15,173,000
Fixed asset turnover		—	—	—	—	—	0.52	2.83	2.75	0.44	2.47	2.36	0.77	0.37	0.56	0.29	0.32	0.35	0.46	0.60	0.79

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $17,240,550K ÷ $—K
= —

The fixed asset turnover ratio measures how efficiently a company generates revenue from its investment in fixed assets. A higher ratio indicates better utilization of fixed assets to generate sales.

For MGM Resorts International, the fixed asset turnover has shown significant fluctuations over the reporting periods. The ratio started at 0.79 as of March 31, 2020, decreased to 0.29 by June 30, 2021, and then saw a sharp increase to 2.83 as of June 30, 2023. This extreme increase suggests a substantial improvement in the company's efficiency in generating revenue from its fixed assets.

However, the ratio dropped to 0.52 by September 30, 2023, indicating a decline in the efficiency of asset utilization. MGM Resorts International experienced inconsistency in fixed asset turnover in the following reporting periods, with values fluctuating between 0.44 to 2.47.

The absence of data for the latter half of 2024 prevents a complete analysis of the trend in fixed asset turnover. MGM Resorts International should closely monitor and manage its fixed asset turnover to ensure optimal utilization of assets and sustained revenue generation efficiency.