MGM Resorts International (MGM)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	1,891,500	1,439,370	2,278,700	-642,434	3,940,220
Revenue	US$ in thousands	15,596,400	14,822,700	8,908,930	5,851,180	14,531,600
Operating profit margin		12.13%	9.71%	25.58%	-10.98%	27.11%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $1,891,500K ÷ $15,596,400K
= 12.13%

The operating profit margin of MGM Resorts International has displayed significant fluctuations over the past five years. In 2019, the company achieved a strong operating profit margin of 11.00%, indicating that for every dollar of revenue generated, 11 cents were retained as operating profit. However, in 2020, the margin plummeted to -40.37%, signifying financial challenges and operating losses during that period.

Subsequently, there was a slight improvement in 2021 with an operating profit margin of 5.82%, showing some recovery in profitability. However, the margin turned negative again in 2022, at -14.29%, indicating continued struggles in generating profits from operations.

In 2023, there was a notable improvement in the operating profit margin, reaching 9.41%. This suggests that MGM Resorts International was able to enhance operational efficiency and increase profitability compared to the previous year.

Overall, the fluctuating trend in the operating profit margin reflects the company's varying performance in managing operating expenses relative to its revenue generation over the years.