MGM Resorts International (MGM)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 3,023,480 | 3,231,940 | 3,212,680 | 3,456,760 | 3,811,170 | 3,965,720 | 4,416,170 | 4,839,660 | 4,831,530 | 4,841,690 | 5,733,570 | 5,065,340 | 6,070,640 | 6,829,950 | 6,180,180 | 6,306,830 | 6,504,730 | 6,861,100 | 7,374,790 | 8,173,910 |
| ROE | 24.69% | 27.93% | 27.36% | 25.83% | 29.97% | 28.06% | -2.48% | 27.12% | 16.78% | 13.28% | 53.05% | 29.80% | 19.91% | 9.44% | -19.87% | -34.49% | -15.75% | 20.95% | 26.24% | 34.71% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $746,558K ÷ $3,023,480K
= 24.69%
MGM Resorts International's Return on Equity (ROE) has exhibited significant fluctuations over the past few years. The ROE stood at 34.71% as of March 31, 2020, indicating a strong profitability relative to shareholders' equity. However, there was a decline in ROE to 26.24% by June 30, 2020, and further decreased to 20.95% by September 30, 2020.
The December 31, 2020, ROE figure saw a significant negative value of -15.75%, signaling a period of decreased profitability relative to equity. The trend continued with ROE dropping to -34.49% by March 31, 2021, and -19.87% by June 30, 2021, further reflecting declining profitability and potential financial challenges.
There was a turnaround in the company's performance as evidenced by the ROE of 9.44% as of September 30, 2021, which improved to 19.91% by December 31, 2021. The positive trend continued with ROE reaching 29.80% by March 31, 2022, and a significant increase to 53.05% by June 30, 2022, indicating a strong recovery in profitability and efficient use of equity.
Despite this strong performance, there was a slight dip in ROE to 13.28% by September 30, 2022, followed by a further increase to 16.78% by December 31, 2022. The company's ROE improved to 27.12% by March 31, 2023, and experienced a negative turn by June 30, 2023, where ROE fell to -2.48%.
The performance rebounded with ROE reaching 28.06% by September 30, 2023, and further improved to 29.97% by December 31, 2023. The positive trend continued into 2024, with ROE figures of 25.83% as of March 31, 2024, 27.36% as of June 30, 2024, and 27.93% as of September 30, 2024. The most recent data point on December 31, 2024, showed the ROE at 24.69%.
Overall, MGM Resorts International's ROE has displayed volatility and fluctuations over the analyzed period, experiencing periods of strong profitability and efficiency, as well as challenges and negative returns. Investors and stakeholders should carefully monitor the company's financial performance and management strategies to assess the sustainability of its return on equity.
Peer comparison
Dec 31, 2024