MGM Resorts International (MGM)

Return on assets (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
Net income (ttm)	US$ in thousands	746,558	902,586	879,125	892,849	1,142,180	1,112,722	-109,485	1,312,339	810,739	642,824	3,041,854	1,509,538	1,208,393	644,701	-1,227,970	-2,175,531	-1,024,654	1,437,721	1,935,319	2,836,973
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
ROA		1.77%	2.11%	2.10%	2.12%	2.70%	2.61%	-0.26%	3.01%	1.77%	1.36%	6.28%	3.91%	2.95%	1.56%	-3.34%	-5.83%	-2.81%	3.89%	5.16%	7.25%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $746,558K ÷ $42,231,600K
= 1.77%

MGM Resorts International's Return on Assets (ROA) indicates how efficiently the company is utilizing its assets to generate profits. The ROA trend for MGM Resorts International over the provided quarters shows fluctuations.

From March 2020 to September 2020, the ROA declined steadily from 7.25% to 3.89%, indicating a decreasing effectiveness in generating profits from its assets. The trend reversed from December 2020 to June 2021, with the ROA turning negative (-2.81% to -3.34%), suggesting that the company's assets were not generating sufficient returns to cover expenses.

Subsequently, there was a gradual improvement in ROA from September 2021 to June 2022, reaching a high of 6.28% in June 2022. This uptrend indicates enhanced asset utilization and profitability. However, from September 2022 to December 2024, the ROA fluctuated within a narrow range between 1.36% and 2.12%, suggesting relatively stable but moderate profitability from assets.

In conclusion, MGM Resorts International's ROA has shown variability over the quarters. The company should focus on optimizing asset efficiency to ensure sustainable profitability and shareholder value in the long run.