MGM Resorts International (MGM)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	9,393,540	8,553,560	6,652,980	5,030,610	3,452,710
Inventory	US$ in thousands	140,559	141,678	126,065	96,374	88,323
Inventory turnover		66.83	60.37	52.77	52.20	39.09

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $9,393,540K ÷ $140,559K
= 66.83

MGM Resorts International's inventory turnover has shown a consistent upward trend over the past five years. In December 31, 2020, the inventory turnover ratio stood at 39.09, indicating that the company's inventory was turning over approximately 39 times during that year. By December 31, 2024, the inventory turnover ratio had significantly improved to 66.83, suggesting a more efficient management of inventory.

The increasing trend in inventory turnover is a positive sign as it signifies that MGM Resorts International is selling its inventory at a faster pace, reducing the carrying costs associated with holding excess inventory. A higher inventory turnover ratio also indicates that the company is effectively managing its inventory levels and aligning them with customer demand.

Overall, the improving trend in MGM Resorts International's inventory turnover ratio reflects effective inventory management practices and a proactive approach towards optimizing operational efficiency in the company's supply chain.