MGM Resorts International (MGM)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 38.92 49.40 60.62 62.01 61.15 52.52 36.80 36.40 36.18 36.62 42.83 40.11 38.03 35.14 31.85 33.03 34.07 32.48 31.64 28.99
Receivables turnover 14.61 15.37 17.24 21.11 16.07 15.07 14.90 12.19 10.34 10.02 8.79 6.38 10.45 6.07 8.08 10.22 8.81 9.26 20.29 18.54
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
Working capital turnover 8.77 6.50 5.01 4.71 4.09 4.92 3.71 11.02 2.98 2.25 1.27 0.73 1.43 2.22 2.57 2.54 14.84 — — —

Activity ratios provide insights into how efficiently a company is managing its assets and liabilities to generate sales and cash flow. The inventory turnover for MGM Resorts International has shown a generally increasing trend over the past year, indicating that the company is efficiently managing its inventory levels.

The receivables turnover has also shown an uptrend, suggesting that the company is effectively collecting its accounts receivable. This is a positive sign of the company's credit policies and the effectiveness of its collection efforts.

The payables turnover has been fluctuating but has generally been increasing, indicating that the company is taking longer to pay its suppliers. However, a high payables turnover ratio may also indicate favorable credit terms negotiated with suppliers.

The working capital turnover has fluctuated over the quarters, but overall, it indicates how well the company is utilizing its working capital to generate sales. A higher turnover ratio is generally considered favorable as it indicates that the company is efficiently using its working capital to support its operations and generate revenue.

Overall, the analysis of these activity ratios suggests that MGM Resorts International has been effectively managing its assets and liabilities to support its revenue generation activities.

Average number of days

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
Days of inventory on hand (DOH) days 9.38 7.39 6.02 5.89 5.97 6.95 9.92 10.03 10.09 9.97 8.52 9.10 9.60 10.39 11.46 11.05 10.71 11.24 11.54 12.59
Days of sales outstanding (DSO) days 24.98 23.75 21.18 17.29 22.72 24.21 24.50 29.95 35.30 36.42 41.53 57.22 34.93 60.11 45.16 35.73 41.44 39.43 17.99 19.69
Number of days of payables days 30.56 22.45 16.50 15.88 17.51 24.76 30.95 27.63 29.96 28.93 22.72 17.78 15.49 16.06 13.14 21.07 24.52 27.35 30.01 38.08

Days of Inventory on Hand (DOH) measures how quickly a company is able to sell its inventory. Lower DOH values indicate quicker inventory turnover. MGM Resorts International's DOH has been fairly consistent over the past two years, ranging from 6.05 days to 6.96 days.

Days of Sales Outstanding (DSO) shows how long it takes for a company to collect its accounts receivable. Lower DSO values suggest quicker collection of payments. MGM Resorts International's DSO has shown a decreasing trend from 27.34 days to 19.48 days over the past eight quarters, indicating an improvement in collection efficiency.

Number of Days of Payables measures how long it takes for a company to pay its suppliers. Higher values imply the company takes longer to settle its payables. MGM Resorts International's payables days have fluctuated between 17.11 days and 23.15 days, but generally, the company has been able to manage its payables effectively.

Overall, MGM Resorts International has been effectively managing its inventory turnover, improving collection efficiency, and maintaining a reasonable level of payables days over the past two years. These activity ratios reflect a balanced approach to managing working capital and operating efficiency within the company.

Long-term

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
Fixed asset turnover 2.87 2.84 2.74 3.10 2.85 2.79 2.67 0.71 0.61 0.50 0.40 0.27 0.40 0.51 0.65 0.83 0.66 0.59 0.56 0.54
Total asset turnover 0.37 0.35 0.33 0.37 0.33 0.30 0.28 0.26 0.22 0.18 0.16 0.10 0.16 0.21 0.26 0.32 0.36 0.39 0.38 0.37

MGM Resorts International's long-term activity ratios indicate the efficiency of the company in generating revenue from its fixed and total assets over the last eight quarters. The fixed asset turnover ratio has shown a positive trend, increasing steadily from 2.51 in Q4 2022 to 2.97 in Q4 2023. This suggests that the company has been utilizing its fixed assets more effectively to generate sales during this period.

On the other hand, the total asset turnover ratio has fluctuated but generally improved over the same period. It increased from 0.29 in Q4 2022 to 0.38 in Q4 2023, indicating that MGM Resorts International has been generating more revenue relative to its total assets.

Overall, the upward trend in both the fixed asset turnover and total asset turnover ratios reflects the company's improved efficiency in utilizing its assets to generate revenue. This indicates positive operational performance and asset utilization for MGM Resorts International, which is a favorable sign for investors and stakeholders.