MGM Resorts International (MGM)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	6,343,810	7,432,820	11,770,800	12,376,700	11,168,900
Total stockholders’ equity	US$ in thousands	3,811,170	4,831,530	6,070,640	6,504,730	7,727,260
Debt-to-capital ratio		0.62	0.61	0.66	0.66	0.59

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $6,343,810K ÷ ($6,343,810K + $3,811,170K)
= 0.62

The debt-to-capital ratio of MGM Resorts International has shown some fluctuation over the past five years, with values ranging from 0.59 to 0.68. The ratio indicates the proportion of the company's capital structure that is financed by debt. A decreasing trend from 0.68 in 2021 to 0.63 in 2023 suggests a relative decrease in the reliance on debt financing compared to total capital.

Although the ratio decreased in 2023, it remains above 0.5, indicating that a significant portion of MGM Resorts' capital structure is still funded by debt. This level of debt financing may expose the company to higher financial risk, as servicing debt obligations could become more challenging, particularly in times of economic uncertainty.

Overall, while the decreasing trend in the debt-to-capital ratio may signal a move towards a more balanced capital structure, investors and stakeholders should closely monitor MGM Resorts' debt management strategies to assess the potential impact on the company's financial stability and performance.