MGM Resorts International (MGM)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	3,811,170	4,831,530	6,070,640	6,504,730	7,727,260
ROE		29.97%	30.49%	20.66%	-15.88%	26.52%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,142,180K ÷ $3,811,170K
= 29.97%

MGM Resorts International's return on equity (ROE) has fluctuated over the past five years. In 2023, the ROE was 30.03%, showing a slight increase from the previous year's 29.83%. This indicates that the company generated $30.03 in net income for every $100 of shareholder's equity in 2023. The upward trend in ROE suggests improved profitability and efficiency in utilizing shareholder's equity.

Comparing to 2021, where the ROE was 19.37%, the company has shown significant improvement in generating returns for its shareholders. However, it is worth noting that in 2020, the ROE was negative at -15.33%, indicating the company incurred a net loss with its shareholder's equity. The negative ROE in 2020 could be a result of various factors such as decreased revenue, increased expenses, or impairment charges.

Overall, the positive ROE in recent years, particularly in 2023, reflects MGM Resorts International's ability to generate profits relative to its shareholder's equity. Investors and stakeholders may view the improving trend in ROE as a positive signal of the company's financial health and operational efficiency.