MGM Resorts International (MGM)

Current ratio

		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
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
Current ratio		1.57	1.78	2.04	2.19	1.81	1.49	1.65	1.25	1.86	1.96	3.23	3.86	3.21	2.24	2.47	2.89	1.26	0.87	0.73	0.78

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $4,910,590K ÷ $3,126,070K
= 1.57

The current ratio of MGM Resorts International has fluctuated over the past eight quarters, ranging from a low of 1.25 in Q1 2022 to a high of 2.19 in Q1 2023. The current ratio measures the company's ability to cover its short-term obligations with its current assets. A ratio above 1 indicates that the company has more current assets than current liabilities.

The trend in the current ratio shows variations in the company's liquidity position. An increase in the current ratio from Q1 2022 to Q1 2023 suggests an improvement in MGM Resorts International's short-term financial health, with a higher ability to meet its current obligations using its current assets. Conversely, a decrease in the current ratio from Q1 2023 to Q3 2023 indicates a potential decline in liquidity.

While a current ratio above 1 indicates a favorable position in meeting short-term liabilities, it is essential to analyze the underlying factors contributing to these changes. Factors such as changes in current assets, current liabilities, or a combination of both could influence the current ratio.

Overall, monitoring the current ratio over time provides insights into MGM Resorts International's short-term liquidity management and helps assess its ability to meet upcoming financial obligations based on its current asset levels.