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.