MGM Resorts International (MGM)

Payables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	5,514,780	6,711,230	7,935,100	7,982,230	7,708,670	5,951,490	4,236,178	3,714,992	3,486,470	3,449,480	3,384,458	3,303,276	3,359,036	3,419,561	3,401,558	3,511,987	3,505,180	3,384,573	3,375,699	3,226,356
Payables	US$ in thousands	461,718	412,757	358,807	347,344	369,817	403,756	359,258	281,225	286,196	273,447	210,654	160,894	142,523	150,445	122,428	202,735	235,437	253,637	277,591	336,586
Payables turnover		11.94	16.26	22.12	22.98	20.84	14.74	11.79	13.21	12.18	12.61	16.07	20.53	23.57	22.73	27.78	17.32	14.89	13.34	12.16	9.59

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,514,780K ÷ $461,718K
= 11.94

MGM Resorts International's payables turnover ratio has shown fluctuating trends over the past eight quarters. The ratio was highest in Q2 2023 at 21.33 and lowest in Q3 2022 at 15.76. Overall, the payables turnover ratio has been above 15, indicating that MGM is managing its accounts payable efficiently.

A high payables turnover ratio suggests that the company is paying its suppliers quickly, which may indicate strong liquidity or good relationships with vendors. Conversely, a low ratio may indicate that the company is taking longer to pay its bills, potentially signaling liquidity issues or strained supplier relationships.

It's important to consider industry benchmarks and trends over time to fully assess the efficiency of MGM's payables management. The fluctuations in the ratio should be further investigated to understand the underlying reasons and implications for the company's financial performance.