MGM Resorts International (MGM)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,760,312 | 2,106,566 | 1,244,814 | 3,386,272 | 2,765,120 | 2,421,691 | 4,831,336 | 2,680,347 | 2,307,381 | 1,577,909 | -692,368 | -2,005,458 | -547,916 | 2,586,344 | 3,195,095 | 4,436,802 | 3,529,420 | 1,044,201 | 1,240,604 | 1,298,616 |
| Long-term debt | US$ in thousands | 6,343,810 | 6,505,520 | 6,674,040 | 6,841,480 | 7,432,820 | 7,209,840 | 7,107,160 | 10,507,100 | 11,770,800 | 11,618,900 | 12,574,900 | 13,245,400 | 12,376,700 | 11,414,700 | 11,339,600 | 11,743,300 | 11,168,900 | 14,943,900 | 14,661,700 | 14,730,800 |
| Total stockholders’ equity | US$ in thousands | 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 | 7,727,260 | 6,060,550 | 6,520,480 | 6,786,200 |
| Return on total capital | 17.33% | 20.12% | 11.22% | 28.99% | 22.55% | 20.09% | 37.63% | 17.21% | 12.93% | 8.55% | -3.69% | -10.26% | -2.90% | 14.15% | 17.07% | 22.28% | 18.68% | 4.97% | 5.86% | 6.04% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,760,312K ÷ ($6,343,810K + $3,811,170K)
= 17.33%
MGM Resorts International's return on total capital has fluctuated significantly over the past eight quarters. In Q4 2023, the return on total capital was 14.96%, showing a strong performance and profitability in that period. However, in Q3 2023, the return on total capital dropped significantly to 0.30%, indicating a sharp decline in profitability compared to the previous quarter.
The company experienced negative returns on total capital in Q2 2023 (-12.66%) and Q1 2023 (-14.52%), reflecting challenges and inefficiencies in capital utilization during those periods. This downward trend in profitability continued from Q4 2022 (-13.77%) and Q3 2022 (-3.82%).
The return on total capital saw a noticeable improvement in Q2 2022 (6.24%) and Q1 2022 (6.12%), signifying enhanced capital efficiency and better profitability during those quarters.
Overall, MGM Resorts International's return on total capital has been volatile, with periods of both strong performance and significant decline. It is essential for the company to focus on effectively managing its capital resources to maintain sustainable profitability in the future.
Peer comparison
Dec 31, 2023