MGM Resorts International (MGM)
Payables 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 |
| Payables | US$ in thousands | 461,718 | 369,817 | 286,196 | 142,523 | 235,437 |
| Payables turnover | 11.94 | 20.84 | 12.78 | 23.57 | 14.89 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,514,780K ÷ $461,718K
= 11.94
The payables turnover ratio for MGM Resorts International has exhibited a decreasing trend over the past five years. From 2019 to 2023, the payables turnover decreased from 32.30 to 18.53, indicating that the company is taking longer to pay off its suppliers or trade payables. A declining payables turnover ratio may suggest that MGM Resorts International is taking longer to settle its payables, which could potentially strain relationships with suppliers if payment terms are not met promptly. It is important for the company to monitor its payables turnover ratio and manage its payables effectively to ensure healthy supplier relationships and optimize its working capital management.
Peer comparison
Dec 31, 2023