MGM Resorts International (MGM)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,415,530 | 2,950,590 | 2,414,200 | 2,722,290 | 2,927,830 | 3,316,360 | 3,843,370 | 4,505,320 | 5,911,890 | 5,295,430 | 5,784,170 | 2,719,120 | 4,703,060 | 5,570,830 | 5,626,230 | 6,171,510 | 5,101,640 | 4,593,870 | 4,835,500 | 6,016,420 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | 443,025 | — | — | 941,145 | 1,484,720 | 1,439,450 | 1,447,040 | 1,473,960 | — | — |
| 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 |
| Cash ratio | 0.72 | 0.76 | 0.80 | 0.90 | 0.94 | 1.12 | 1.40 | 1.58 | 1.31 | 0.90 | 1.12 | 0.76 | 1.37 | 1.91 | 3.49 | 4.15 | 3.53 | 2.19 | 1.88 | 2.29 |
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 fluctuated over the years, indicating changes in the company's ability to cover its short-term liabilities with cash and cash equivalents. The ratio was relatively high in the period ending March 31, 2021, at 4.15, suggesting a strong liquidity position during that time. Subsequently, the ratio decreased but remained above 1, indicating the company had enough liquid assets to cover its short-term obligations.
However, starting from the period ending March 31, 2023, the cash ratio declined below 1, reaching its lowest point at 0.72 as of December 31, 2024. This downward trend in the cash ratio may raise concerns about the company's liquidity management and its ability to meet immediate financial obligations solely with cash resources.
It is essential for MGM Resorts International to closely monitor its cash position and liquidity management strategies to ensure it has sufficient liquid assets to withstand unexpected economic challenges or operational disruptions in the future. A low cash ratio may signal potential difficulties in meeting short-term obligations and may necessitate adjustments in financial planning and cash flow management.
Peer comparison
Dec 31, 2024