MGM Resorts International (MGM)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	9,782,080	9,968,360	9,750,700	9,319,440	8,758,870	8,031,000	7,654,060	7,179,980	6,652,980	6,365,170	6,036,790	5,572,620	5,030,607	4,376,277	3,713,614	2,942,334	3,452,707	4,441,687	5,648,820	7,179,270
Inventory	US$ in thousands	140,559	144,843	147,863	147,357	141,678	135,859	130,889	128,732	126,065	113,323	115,100	102,050	96,374	94,198	79,019	82,346	88,323	97,316	106,791	106,327
Inventory turnover		69.59	68.82	65.94	63.24	61.82	59.11	58.48	55.77	52.77	56.17	52.45	54.61	52.20	46.46	47.00	35.73	39.09	45.64	52.90	67.52

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $9,782,080K ÷ $140,559K
= 69.59

Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory. It indicates the number of times a company's inventory is sold and replaced over a specific period. For MGM Resorts International, analyzing the trend of its inventory turnover from March 31, 2020, to December 31, 2024, reveals interesting insights.

The inventory turnover for MGM Resorts International has shown a gradual decrease over the years. It started at a fairly high level of 67.52 on March 31, 2020, which implies that the company was selling and replacing its inventory more than 67 times during that year. However, this ratio decreased consistently over the years, indicating a slowdown in the company's inventory management efficiency.

By December 31, 2024, the inventory turnover had decreased to 69.59, which is still relatively high but lower compared to the starting point. This decline suggests that MGM Resorts International might be facing challenges in efficiently managing its inventory levels, possibly due to changing consumer demands, supply chain disruptions, or other operational factors.

Overall, although the inventory turnover for MGM Resorts International remains relatively high, the decreasing trend raises concerns about the company's inventory management effectiveness. It would be crucial for the company to closely monitor and optimize its inventory turnover in order to enhance operational efficiency and profitability in the future.