MGM Resorts International (MGM)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	1,142,180	1,473,090	1,254,370	-1,032,720	2,049,150
Total assets	US$ in thousands	42,368,500	45,692,200	40,899,100	36,494,900	33,876,400
ROA		2.70%	3.22%	3.07%	-2.83%	6.05%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $1,142,180K ÷ $42,368,500K
= 2.70%

MGM Resorts International's return on assets (ROA) has fluctuated over the past five years, indicating varying levels of efficiency in generating profits from its assets.

In 2023, the ROA stands at 2.70%, a decrease from the previous year's 3.15%. While the decrease may raise some concerns, it is important to note that ROA above 2% generally indicates that the company is effectively utilizing its assets to generate profits.

The ROA was 2.88% in 2021, showing a slight improvement from the year before. The positive trend in ROA from 2020 to 2021 suggests enhanced asset efficiency during that period.

In 2020, MGM Resorts International recorded a negative ROA of -2.73%, indicating that the company experienced a loss for the year relative to its asset base. This could be a result of various factors such as significant expenses, impairments, or investment losses.

The highest ROA in the provided period was 6.04% in 2019, reflecting strong profitability relative to its asset base. This could suggest effective management of assets and solid performance in that year.

Overall, the fluctuation in MGM Resorts International's ROA over the past five years indicates varying levels of profitability relative to its asset base, with the company experiencing both positive and negative ROA values. Further analysis of the company's financial performance and operational efficiency may provide insights into the factors driving these fluctuations.