MGM Resorts International (MGM)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,351,680 | 3,126,070 | 4,515,890 | 3,442,260 | 1,856,580 |
| Quick ratio | 0.72 | 0.94 | 1.31 | 1.37 | 3.53 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,415,530K
+ $—K
+ $—K)
÷ $3,351,680K
= 0.72
The quick ratio of MGM Resorts International has shown a declining trend over the past five years, starting at a strong 3.53 in December 2020 and decreasing to 1.37 by December 2021, further dropping to 1.31 in December 2022, and then to 0.94 by December 2023. The ratio fell significantly to 0.72 by December 2024, indicating a decrease in the company's ability to meet its short-term obligations with its most liquid assets. This downward trend may raise concerns about the company's liquidity position and its ability to cover immediate liabilities without relying on selling inventory or other current assets. Further analysis and monitoring of liquidity management strategies may be warranted to address this declining trend in the quick ratio.
Peer comparison
Dec 31, 2024