MGM Resorts International (MGM)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Operating income (ttm)	US$ in thousands	1,583,395	1,712,319	1,767,398	1,662,459	1,541,689	164,058	-1,251,848	758,224	484,126	1,810,115	4,748,865	2,631,175	2,278,697	1,546,282	-841,680	-2,139,970	-642,440	2,681,218	3,414,781	4,820,796
Total assets	US$ in thousands	42,231,600	42,741,000	41,815,500	42,079,100	42,368,500	42,572,500	42,905,800	43,542,200	45,692,200	47,330,200	48,432,100	38,650,000	40,899,100	41,338,300	36,776,400	37,330,800	36,494,900	37,004,800	37,471,300	39,118,900
Operating ROA		3.75%	4.01%	4.23%	3.95%	3.64%	0.39%	-2.92%	1.74%	1.06%	3.82%	9.81%	6.81%	5.57%	3.74%	-2.29%	-5.73%	-1.76%	7.25%	9.11%	12.32%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $1,583,395K ÷ $42,231,600K
= 3.75%

The operating return on assets (ROA) for MGM Resorts International has shown some fluctuations over the periods analyzed. The ROA provides insight into how effectively the company is generating profits from its assets used in operations.

From March 31, 2020, to June 30, 2020, the operating ROA declined from 12.32% to 9.11%. This decrease indicates a potential decrease in profitability relative to the assets employed in operations.

Subsequently, from June 30, 2020, to December 31, 2020, the operating ROA turned negative at -1.76%. This negative figure suggests that the company's operations failed to generate profits at this time.

The negative trend continued through the first half of 2021, with operating ROA figures of -5.73% as of March 31, 2021, and -2.29% as of June 30, 2021. These results indicate ongoing challenges in profitability relative to asset utilization.

However, there was a notable improvement starting from September 30, 2021, with the operating ROA turning positive at 3.74%. The positive trend continued into the following quarters, reaching 4.23% as of June 30, 2024. This suggests that the company's profitability relative to its assets used in operations was strengthening.

Overall, the analysis shows a mix of positive and negative trends in MGM Resorts International's operating ROA over the periods covered, reflecting fluctuations in the company's operational efficiency and profitability.