MGM Resorts International (MGM)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 1,117,065 | 1,231,472 | 1,159,063 | 1,170,500 | 1,472,763 | 1,118,595 | -292,180 | 1,620,595 | 903,799 | 1,085,115 | 3,891,635 | 1,821,305 | 1,461,803 | 751,692 | -1,547,083 | -2,878,933 | -1,511,474 | 1,673,728 | 2,351,261 | 3,645,884 |
| Revenue (ttm) | US$ in thousands | 17,240,550 | 17,269,550 | 17,059,590 | 16,674,420 | 16,164,250 | 15,380,910 | 14,823,800 | 14,146,480 | 13,127,490 | 12,592,160 | 11,883,630 | 10,886,700 | 9,680,140 | 8,116,790 | 6,535,170 | 4,557,019 | 5,162,089 | 6,853,689 | 9,042,149 | 11,975,580 |
| Pretax margin | 6.48% | 7.13% | 6.79% | 7.02% | 9.11% | 7.27% | -1.97% | 11.46% | 6.88% | 8.62% | 32.75% | 16.73% | 15.10% | 9.26% | -23.67% | -63.18% | -29.28% | 24.42% | 26.00% | 30.44% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,117,065K ÷ $17,240,550K
= 6.48%
MGM Resorts International's pretax margin, which measures the proportion of revenue remaining after deducting all operating expenses but before income taxes, has displayed fluctuations over the years.
The trend shows a decrease from March 2020 at 30.44% to June 2020 at 26.00%, indicating a slight decline in profitability during this period. The pretax margin continued to drop to 24.42% by September 2020. However, by December 2020, there was a significant negative swing, with the pretax margin recording -29.28%.
The situation worsened in the following quarters, with substantial declines in March 2021 (-63.18%) and June 2021 (-23.67%). Notably, the company rebounded modestly in the subsequent periods, with the pretax margin improving to 9.26% by September 2021 and further to 15.10% by December 2021.
The positive trend continued into 2022, with pretax margins of 16.73% in March 2022 and 32.75% by June 2022, signaling a significant recovery in profitability. However, there was a slight dip to 8.62% in September 2022 and further to 6.88% by December 2022.
The pretax margin saw an uptick to 11.46% in March 2023, followed by a dip to -1.97% in June 2023. The trend reversed again with an increase to 7.27% by September 2023 and further to 9.11% by December 2023.
The pretax margin remained relatively stable in the following quarters, ranging from 7.02% to 6.48% towards the end of 2024. Overall, MGM Resorts International's pretax margin has shown a mix of volatility and recovery, with efforts to improve profitability reflected in the positive trajectory observed from 2021 onwards.
Peer comparison
Dec 31, 2024