MGM Resorts International (MGM)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,927,830 | 5,911,890 | 4,703,060 | 5,101,640 | 2,329,600 |
| Short-term investments | US$ in thousands | — | — | 66,000 | 1,447,040 | — |
| Total current liabilities | US$ in thousands | 3,126,070 | 4,515,890 | 3,442,260 | 1,856,580 | 3,191,420 |
| Cash ratio | 0.94 | 1.31 | 1.39 | 3.53 | 0.73 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,927,830K
+ $—K)
÷ $3,126,070K
= 0.94
The cash ratio of MGM Resorts International has shown fluctuations over the past five years, ranging from 0.79 to 2.86. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents alone. A higher ratio indicates a stronger ability to meet short-term obligations without relying on other sources of liquidity.
In 2019, the cash ratio was relatively low at 0.79, suggesting that MGM Resorts International had a lower level of cash to cover its short-term liabilities. However, by 2020, the ratio significantly increased to 2.86, indicating a significant improvement in the company's liquidity position and its ability to cover short-term obligations.
Subsequently, in 2021 and 2022, the cash ratio remained stable at 1.44, indicating that the company maintained a consistent level of liquidity to meet its short-term obligations. However, the ratio decreased to 1.18 in 2023, which may raise some concerns about the company's ability to cover its short-term liabilities with cash on hand.
Overall, while MGM Resorts International has shown fluctuations in its cash ratio over the past five years, management should closely monitor liquidity levels to ensure the company can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023