MGM Resorts International (MGM)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,699,845 | 1,806,069 | 1,757,118 | 1,545,123 | 1,322,006 | 1,004,572 | 67,891 | 2,296,909 | 2,161,104 | 2,421,691 | 4,831,336 | 2,680,347 | 2,307,381 | 1,593,390 | -750,931 | -2,097,682 | -2,043,922 | -1,411,656 | -447,930 | 952,741 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 56.22% | 55.88% | 54.69% | 44.70% | 34.69% | 25.33% | 1.54% | 47.46% | 44.73% | 50.02% | 84.26% | 52.92% | 38.01% | 23.33% | -12.15% | -33.26% | -31.42% | -20.57% | -6.07% | 11.66% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,699,845K ÷ ($—K + $3,023,480K)
= 56.22%
MGM Resorts International's return on total capital has shown fluctuating performance over the fiscal years in the dataset provided. The company's return on total capital was negative in the quarters ending in June 2020, September 2020, December 2020, March 2021, and June 2021, indicating that the company did not generate positive returns on the total capital invested during those periods.
However, the company's return on total capital started to improve significantly from the quarter ending in September 2021 and continued to increase steadily for the next several quarters, reaching its peak at 56.22% in December 2024. This indicates that MGM Resorts International became more efficient in generating returns for each dollar of total capital employed in its operations during this period.
Overall, the increasing trend in return on total capital from September 2021 to December 2024 suggests that MGM Resorts International managed to enhance its operational efficiency, profitability, and utilization of capital resources, which could be attributed to strategic initiatives, cost-saving measures, improved revenue generation, or better capital allocation decisions.
Peer comparison
Dec 31, 2024