MGM Resorts International (MGM)

Working capital turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Revenue (ttm) US$ in thousands 17,240,550 17,269,550 17,059,590 16,674,420 16,164,250 15,380,910 14,823,800 14,146,480 13,127,490 12,592,160 11,883,630 10,886,700 9,680,140 8,116,790 6,535,170 4,557,019 5,162,089 6,853,689 9,042,149 11,975,580
Total current assets US$ in thousands 4,363,600 4,832,450 4,409,140 4,573,810 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
Total current liabilities US$ in thousands 3,351,680 3,886,760 3,000,170 3,033,990 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
Working capital turnover 17.04 18.26 12.11 10.83 9.06 6.70 5.17 4.18 3.61 4.36 3.28 11.89 3.26 2.49 1.44 0.87 1.26 2.00 2.38 2.41

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $17,240,550K ÷ ($4,363,600K – $3,351,680K)
= 17.04

The working capital turnover ratio of MGM Resorts International has exhibited fluctuations over the observed periods between March 31, 2020, and December 31, 2024. The ratio started at 2.41 in March 2020 and experienced a gradual decline to 1.26 by December 31, 2020. Subsequently, there was an evident recovery trend, with the ratio climbing to 3.26 by December 31, 2021.

The working capital turnover ratio surged significantly to 11.89 by March 31, 2022, indicating a substantial improvement in the company's efficiency in utilizing its working capital to generate revenue. This peak was followed by some fluctuations, with the ratio stabilizing around 6.70 by September 30, 2023.

By the end of December 31, 2024, MGM Resorts International achieved a working capital turnover ratio of 17.04, signifying a substantial improvement in the efficiency of its working capital management compared to the initial periods. Overall, the company showed a noticeable improvement in its ability to generate revenue from working capital as the ratio increased consistently over the analyzed periods.