MGM Resorts International (MGM)

Debt-to-assets ratio

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
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 assets US$ in thousands 42,368,500 42,572,500 42,905,800 43,542,200 45,692,200 47,330,200 48,432,100 38,650,000 40,899,100 41,338,300 36,776,400 37,330,800 36,494,900 37,004,800 37,471,300 39,118,900 33,876,400 31,168,900 30,813,700 31,146,900
Debt-to-assets ratio 0.15 0.15 0.16 0.16 0.16 0.15 0.15 0.27 0.29 0.28 0.34 0.35 0.34 0.31 0.30 0.30 0.33 0.48 0.48 0.47

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $6,343,810K ÷ $42,368,500K
= 0.15

MGM Resorts International has maintained a relatively stable debt-to-assets ratio over the past eight quarters, ranging from 0.15 to 0.30. The lower ratios in Q4 2023 and Q3 2023 indicate that the company has a conservative approach to financing its operations, with a lower proportion of debt relative to its total assets. This suggests a lower financial risk and higher asset coverage for creditors.

However, the ratio increased to 0.16 in Q2 2023, indicating a slight uptick in the company's debt relative to its assets. This shift may be attributed to operational or strategic decisions impacting the capital structure. The ratio remained at 0.16 in Q1 2023, reflecting a stable debt position from the previous quarter.

Comparing the recent quarters to the same period in the prior year, there has been a noticeable decrease in the debt-to-assets ratio. Q4 2022 had a ratio of 0.19, which decreased to 0.15 in Q4 2023, signaling improved financial health and reduced reliance on debt financing.

Overall, MGM Resorts International's debt-to-assets ratio has shown a mix of stability and minor fluctuations, indicating a balanced approach to managing its capital structure and financial risk. It is crucial for investors and stakeholders to monitor future trends in this ratio to assess the company's long-term financial health and leverage levels.