MGM Resorts International (MGM)

Working capital turnover

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Revenue (ttm) US$ in thousands 15,642,020 14,936,500 14,365,390 15,941,210 14,865,260 14,215,440 13,432,030 10,091,140 8,870,390 7,329,990 5,774,612 3,842,475 5,850,905 7,589,185 9,735,953 12,610,310 12,110,220 12,119,940 11,844,790 11,514,580
Total current assets US$ in thousands 4,910,590 5,259,170 5,617,000 6,231,100 8,154,690 8,783,180 9,166,780 4,514,940 6,416,180 6,670,320 6,574,540 7,083,870 5,950,660 6,186,280 6,370,770 7,597,930 4,007,690 2,880,750 2,040,030 2,207,140
Total current liabilities US$ in thousands 3,126,070 2,962,070 2,749,400 2,844,430 4,515,890 5,895,500 5,544,580 3,599,600 3,442,260 3,410,460 2,036,370 1,835,390 1,856,580 2,766,780 2,575,130 2,626,250 3,191,420 3,293,240 2,786,540 2,812,680
Working capital turnover 8.77 6.50 5.01 4.71 4.09 4.92 3.71 11.02 2.98 2.25 1.27 0.73 1.43 2.22 2.57 2.54 14.84 — — —

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $15,642,020K ÷ ($4,910,590K – $3,126,070K)
= 8.77

To analyze the working capital turnover of MGM Resorts International based on the provided data, we can see a fluctuating trend over the past eight quarters.

In Q1 2022, the working capital turnover was relatively high at 11.89, indicating that the company efficiently utilized its working capital to generate revenue during that period. However, in the subsequent quarters, there was a significant decrease in working capital turnover, with Q2 2023 showing the lowest turnover of 5.17.

The decreasing trend in working capital turnover from Q1 2022 to Q2 2023 suggests that MGM Resorts International may have faced challenges in managing its working capital efficiently to support revenue generation during these periods. The company experienced a slight rebound in Q3 2023, with a turnover of 6.70, but it was still below the levels seen in Q1 2022.

Overall, the fluctuation in working capital turnover indicates potential variability in MGM Resorts International's ability to effectively utilize its working capital to support its operational activities and generate revenue. Further analysis of the company's operational efficiency and management of working capital may be warranted to understand the underlying reasons for these fluctuations and to identify areas for improvement.