MGM Resorts International (MGM)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,300,020 | 2,170,160 | 1,507,780 | -1,224,300 | 2,681,490 |
| Revenue | US$ in thousands | 15,596,400 | 14,822,700 | 8,908,930 | 5,851,180 | 14,531,600 |
| Pretax margin | 8.34% | 14.64% | 16.92% | -20.92% | 18.45% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $1,300,020K ÷ $15,596,400K
= 8.34%
MGM Resorts International's pretax margin has fluctuated over the past five years. In 2023, the company achieved a pretax margin of 9.11%, representing an increase from the previous year's margin of 6.88%. However, this margin is lower compared to 2021 when the company reported a pretax margin of 15.10%.
The significant decrease in pretax margin in 2020 to -29.28% indicates a period of financial difficulty for MGM Resorts International, likely due to the impact of the COVID-19 pandemic on the hospitality and entertainment industry.
The recovery in 2021 and the subsequent improvement in 2022 and 2023 suggest that the company has been able to stabilize and enhance its profitability. It is important for MGM Resorts International to continue monitoring and managing its pretax margin to ensure sustainable financial performance in the future.
Peer comparison
Dec 31, 2023