MGM Resorts International (MGM)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	15,596,400	14,822,700	8,908,930	5,851,180	14,531,600
Receivables	US$ in thousands	1,070,580	925,165	857,777	559,917	1,374,880
Receivables turnover		14.57	16.02	10.39	10.45	10.57

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $15,596,400K ÷ $1,070,580K
= 14.57

MGM Resorts International has shown an increasing trend in its receivables turnover ratio over the past five years. The receivables turnover ratio measures how efficiently the company is managing its accounts receivable by indicating how many times during a period the company collects its average accounts receivable balance.

The higher the receivables turnover ratio, the better, as it signifies that the company is collecting its outstanding receivables more quickly. MGM Resorts International's receivables turnover ratio has improved from 9.38 in 2019 to 15.10 in 2023, indicating a positive trend in the company's ability to collect its accounts receivable efficiently.

This improvement suggests that MGM Resorts International has been managing its accounts receivable more effectively, possibly through better credit policies, collection efforts, or customer relationships. An increasing receivables turnover ratio can also signify a reduction in credit sales or tighter credit terms, which can potentially improve cash flow and reduce the risk of bad debts for the company.

Overall, the upward trend in MGM Resorts International's receivables turnover ratio is a positive indicator of the company's financial health and operational efficiency in managing its accounts receivable.