MGM Resorts International (MGM)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 17.04 | 18.26 | 12.11 | 10.83 | 9.06 | 6.70 | 5.17 | 4.18 | 3.61 | 4.36 | 3.28 | 11.89 | 3.26 | 2.49 | 1.44 | 0.87 | 1.26 | 2.00 | 2.38 | 2.41 |
The inventory turnover ratio for MGM Resorts International has been showing a declining trend over the years, indicating that the company is taking longer to sell its inventory. However, the ratio has seen some fluctuations in recent periods, with a slight increase noted in the most recent quarter.
The receivables turnover ratio data is not available, so it is not possible to analyze how efficiently the company is collecting on its receivables.
Similarly, the payables turnover ratio data is not provided, making it difficult to assess how well the company is managing its payables.
The working capital turnover ratio, on the other hand, has shown significant variability over the past few years, with a sharp increase in the most recent quarter. This suggests that the company is generating significant revenue relative to its working capital, indicating positive operational efficiency and potentially effective capital utilization.
In conclusion, while the inventory turnover ratio has been a cause for concern, the working capital turnover ratio points towards operational efficiency and effective capital management for MGM Resorts International.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 5.24 | 5.30 | 5.53 | 5.77 | 5.90 | 6.17 | 6.24 | 6.54 | 6.92 | 6.50 | 6.96 | 6.68 | 6.99 | 7.86 | 7.77 | 10.22 | 9.34 | 8.00 | 6.90 | 5.41 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data for MGM Resorts International, let's analyze the activity ratios:
1. Days of Inventory on Hand (DOH):
- The Days of Inventory on Hand measure how many days, on average, a company holds inventory before selling it.
- The trend of this ratio for MGM Resorts International shows a slight increase from 5.41 days as of March 31, 2020, to 5.24 days as of December 31, 2024.
- A decreasing trend in this ratio indicates that the company is managing its inventory efficiently, minimizing idle inventory and potentially reducing storage costs.
2. Days of Sales Outstanding (DSO):
- Unfortunately, DSO data is missing, which makes it challenging to assess the efficiency of MGM Resorts International in collecting its accounts receivable.
- DSO measures the average number of days it takes for a company to collect payment after making a sale.
- A lower DSO indicates that the company is collecting payments faster and efficiently managing its receivables.
3. Number of Days of Payables:
- Similarly, data for the number of Days of Payables is not available for MGM Resorts International.
- This ratio would have indicated how long the company takes to pay its suppliers and is important for analyzing the company's liquidity and relationships with its suppliers.
- A longer payment period can indicate better cash flow management, but it may also strain relationships with suppliers if it is too long.
Overall, without complete data on DSO and the number of Days of Payables, it is challenging to provide a comprehensive analysis of MGM Resorts International's activity ratios. The available information suggests a relatively stable trend in Days of Inventory on Hand, but a complete picture of the company's efficiency in managing receivables and payables is missing.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 0.52 | 2.83 | 2.75 | 0.44 | 2.47 | 2.36 | 0.77 | 0.37 | 0.56 | 0.29 | 0.32 | 0.35 | 0.46 | 0.60 | 0.79 |
| Total asset turnover | 0.41 | 0.40 | 0.41 | 0.40 | 0.38 | 0.36 | 0.35 | 0.32 | 0.29 | 0.27 | 0.25 | 0.28 | 0.24 | 0.20 | 0.18 | 0.12 | 0.14 | 0.19 | 0.24 | 0.31 |
The fixed asset turnover ratio measures how efficiently a company generates sales from its fixed assets. For MGM Resorts International, this ratio fluctuated significantly over the period analyzed, starting at 0.79 in March 2020, declining to a low of 0.29 in June 2021, and then showing a sharp increase in June 2022 to 2.36. This spike continued through March 2023, reaching 2.83, before dropping back down to 0.52 by September 2023. The ratio then became unavailable for the remaining periods.
On the other hand, the total asset turnover ratio examines how effectively the company utilizes all its assets to generate sales. In the case of MGM Resorts International, this ratio started at 0.31 in March 2020, decreased to 0.12 by March 2021, and then began to rise gradually, reaching 0.38 by December 2023. Subsequently, it continued to increase slightly, remaining stable around 0.40 from March 2024 onwards.
Overall, the analysis of MGM Resorts International's long-term activity ratios indicates a fluctuating trend in fixed asset turnover, while the total asset turnover ratio shows a more stable performance with a gradual increase over time.