MGM Resorts International (MGM)

Return on sales

MGM Resorts International's profitability ratios have shown fluctuating trends over the past five years. The gross profit margin has been relatively stable, hovering around 47-49%, indicating a consistent level of profitability from sales after accounting for the cost of goods sold.

However, the operating profit margin has been more volatile, with a significant decline in 2022 but a recovery in 2023. This suggests that the company's operating efficiency and cost management have been inconsistent, impacting its ability to generate profits from its core business operations.

The pretax margin has also been fluctuating, with a notable increase in 2021 followed by a decline in 2022 and a modest improvement in 2023. This metric reflects the company's ability to control operating expenses and generate profits before accounting for taxes, indicating some variability in MGM Resorts' profitability performance over the years.

The net profit margin, which represents the company's bottom line profitability after all expenses including taxes, has shown the most variation, ranging from negative figures in 2020 to positive margins in other years. This suggests that MGM Resorts has experienced challenges in generating net income consistently, potentially due to factors such as operational inefficiencies, financial obligations, or economic conditions affecting the industry.

Overall, while MGM Resorts International has demonstrated resilience in maintaining a stable gross profit margin, its operating and net profit margins reflect a more turbulent financial performance with notable fluctuations in profitability over the past five years.

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Return on investment

MGM Resorts International's profitability ratios have shown fluctuations over the past five years.

1. Operating return on assets (Operating ROA):
- In 2023, the Operating ROA improved to 3.59% from a negative percentage in 2022.
- The ratio indicates that in 2023, MGM Resorts International generated 3.59 cents of operating profit for every dollar of assets.
- This improvement suggests that the company was more efficient in utilizing its assets to generate operating profits in 2023.

2. Return on assets (ROA):
- ROA has shown variability over the years, ranging from positive to negative values.
- In 2019, MGM Resorts International achieved the highest ROA of 6.04%, indicating strong profitability relative to its total assets.
- However, in 2020, the ROA was negative, implying that the company faced challenges in generating profits from its assets in that year.

3. Return on total capital:
- MGM Resorts International's return on total capital has been volatile, moving from positive to negative values.
- The significant improvement in 2023, with a ratio of 14.96%, indicates that the company generated substantial returns on its total capital investment during that year.
- This suggests that the company may have effectively utilized its total capital to generate profits in 2023.

4. Return on equity (ROE):
- ROE has also shown variability, with both positive and negative values over the years.
- In 2023, the ROE reached a high of 30.03%, indicating strong profitability for equity holders relative to their investment.
- The fluctuating ROE values suggest that MGM Resorts International's profitability performance for equity shareholders has been inconsistent over the past five years.

Overall, MGM Resorts International's profitability ratios have experienced fluctuations, with improvements in certain years indicating enhanced efficiency and profitability, while weaknesses in other years point to challenges in generating returns from assets, total capital, and equity.