MGM Resorts International (MGM)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	5,514,780	7,708,670	3,657,850	3,358,910	3,505,180
Inventory	US$ in thousands	141,678	126,065	96,374	88,323	102,888
Inventory turnover		38.92	61.15	37.95	38.03	34.07

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $5,514,780K ÷ $141,678K
= 38.92

The inventory turnover ratio for MGM Resorts International has fluctuated over the past five years, indicating varying efficiencies in managing inventory. In 2023, the ratio stood at 60.37, reflecting a substantial increase from the previous year's 52.77. This suggests that MGM Resorts International sold and replaced its inventory more than 60 times during the year, which may indicate effective inventory management.

Comparing to the previous years, the inventory turnover ratio in 2022 and 2021 was relatively similar, at 52.77 and 52.20, respectively. This signifies a consistent performance in inventory turnover during those years. The ratio experienced a notable increase in 2019, reaching 73.90, indicating a high rate of inventory turnover that year.

Conversely, in 2020, the inventory turnover ratio dropped to 39.09, signaling a decrease in the frequency of inventory turnover compared to the previous year. This could suggest potential inefficiencies in managing inventory during that period.

Overall, the trend in inventory turnover for MGM Resorts International demonstrates some fluctuations, with 2023 showing a significant improvement in efficiencies, while 2020 marked a decline. Monitoring and analyzing inventory turnover ratios over time can provide valuable insights into the company's inventory management effectiveness and operational performance.