MGM Resorts International (MGM)
Working capital 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 |
| Total current assets | US$ in thousands | 4,910,590 | 8,154,690 | 6,416,180 | 5,950,660 | 4,007,690 |
| Total current liabilities | US$ in thousands | 3,126,070 | 4,515,890 | 3,442,260 | 1,856,580 | 3,191,420 |
| Working capital turnover | 8.74 | 4.07 | 3.00 | 1.43 | 17.80 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $15,596,400K ÷ ($4,910,590K – $3,126,070K)
= 8.74
MGM Resorts International's working capital turnover has shown fluctuations over the past five years. In 2023, the working capital turnover ratio significantly increased to 9.06, indicating that the company generated $9.06 in revenue for every $1 of working capital invested during the year. This substantial increase from the previous year's ratio of 3.61 suggests that MGM Resorts effectively utilized its working capital to drive revenue growth.
Comparing to the ratios from 2019 to 2021, where the ratios ranged between 1.26 to 3.26, we observe a gradual improvement in working capital efficiency. Notably, in 2019, the ratio spiked to 15.80, signifying a particularly high turnover rate for that year.
Overall, MGM Resorts International's improving working capital turnover indicates that the company has been efficiently managing its working capital to support its operations and generate revenue. This efficiency is fundamental in driving profitability and sustainable growth for the organization.
Peer comparison
Dec 31, 2023