MGM Resorts International (MGM)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 42,368,500 | 45,692,200 | 40,899,100 | 36,494,900 | 33,876,400 |
| Operating ROA | 4.46% | 3.15% | 5.57% | -1.76% | 11.63% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,891,500K ÷ $42,368,500K
= 4.46%
Operating return on assets (Operating ROA) measures a company's ability to generate operating income as a percentage of its total assets. Looking at the data over the past five years for MGM Resorts International, we observe fluctuations in the operating ROA:
- In 2023, the operating ROA improved significantly to 3.59%, indicating that the company was able to generate 3.59 cents of operating income for every dollar of assets on its balance sheet.
- In 2022, the operating ROA was negative at -4.10%, suggesting that MGM Resorts International incurred operating losses relative to its assets during that period.
- In 2021, the operating ROA increased to 1.38%, showing a moderate improvement in the company's ability to utilize its assets efficiently to generate operating income.
- In 2020, there was a significant decline in operating ROA to -5.71%, indicating operational challenges or inefficiencies that resulted in a negative return on assets.
- In 2019, the operating ROA was relatively strong at 4.19%, indicating that MGM Resorts International was able to effectively utilize its assets to generate operating income.
Overall, the trend in operating ROA for MGM Resorts International shows fluctuations year over year, with both positive and negative values. Investors and stakeholders may want to further investigate the factors contributing to these fluctuations to assess the company's operational efficiency and profitability.
Peer comparison
Dec 31, 2023