MGM Resorts International (MGM)
Working capital turnover
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Revenue | US$ in thousands | 17,240,500 | 16,164,200 | 13,127,500 | 9,680,140 | 5,162,080 |
Total current assets | US$ in thousands | 4,363,600 | 4,910,590 | 8,154,690 | 6,416,180 | 5,950,660 |
Total current liabilities | US$ in thousands | 3,351,680 | 3,126,070 | 4,515,890 | 3,442,260 | 1,856,580 |
Working capital turnover | 17.04 | 9.06 | 3.61 | 3.26 | 1.26 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $17,240,500K ÷ ($4,363,600K – $3,351,680K)
= 17.04
The working capital turnover of MGM Resorts International has shown a significant improvement over the past five years, increasing from 1.26 in December 2020 to 17.04 in December 2024. This indicates that the company is becoming more efficient in utilizing its working capital to generate revenue. The upward trend in the working capital turnover ratio suggests that MGM Resorts International is managing its working capital more effectively, potentially by reducing excess inventory or extending payment terms to suppliers. A high working capital turnover ratio is generally favorable as it signifies that the company is effectively leveraging its current assets to support its operations and drive revenue growth.
Peer comparison
Dec 31, 2024