MGM Resorts International (MGM)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,415,530 | 2,927,830 | 5,911,890 | 4,703,060 | 5,101,640 |
| Short-term investments | US$ in thousands | — | — | — | — | 1,447,040 |
| Total current liabilities | US$ in thousands | 3,351,680 | 3,126,070 | 4,515,890 | 3,442,260 | 1,856,580 |
| Cash ratio | 0.72 | 0.94 | 1.31 | 1.37 | 3.53 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,415,530K
+ $—K)
÷ $3,351,680K
= 0.72
The cash ratio of MGM Resorts International has demonstrated a declining trend over the past five years, falling from 3.53 in December 2020 to 0.72 in December 2024. This downward trajectory suggests that the company may be holding fewer liquid assets relative to its current liabilities.
A cash ratio of 1 or higher is generally considered healthy, as it indicates that a company has enough cash or cash equivalents to cover its short-term obligations. However, the decreasing trend in MGM's cash ratio raises concerns about its liquidity position and ability to meet its immediate financial obligations.
It is important for investors and stakeholders to closely monitor MGM Resorts International's cash management practices and liquidity position to assess its ability to weather potential economic challenges and meet its short-term financial commitments.
Peer comparison
Dec 31, 2024