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.