MGM Resorts International (MGM)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 13.97 | 11.12 | 9.46 | 6.74 | 5.61 |
Based on the provided data, MGM Resorts International's solvency ratios show a consistently low level of debt relative to its assets, capital, and equity over the years from 2020 to 2024. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all remained at 0.00, indicating that the company holds minimal debt compared to its total assets, capital, and equity.
However, the Financial leverage ratio increased significantly over the years, from 5.61 in 2020 to 13.97 in 2024. This ratio measures the extent to which the company relies on debt to finance its operations, and the increasing trend suggests MGM Resorts International has been taking on more debt relative to its equity, potentially increasing its financial risk and leverage.
Overall, while the company's direct debt ratios suggest strong solvency and financial stability, the increasing Financial leverage ratio indicates a higher reliance on debt financing which could warrant further monitoring to ensure sustainable financial health in the future.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.52 | 4.20 | -3.62 | 0.47 | -1.23 |
The interest coverage ratio for MGM Resorts International has shown fluctuations over the past five years. In December 2020, the interest coverage ratio was negative, indicating that the company's earnings were insufficient to cover its interest expenses. However, this situation improved in the following years. By December 2023, the interest coverage ratio was significantly higher at 4.20, suggesting that the company's earnings were more than sufficient to cover its interest costs. This trend continued into December 2024, with a solid interest coverage ratio of 3.52. Overall, the company has made progress in managing its interest expenses and strengthening its ability to meet its interest obligations with its earnings.