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.
Peer comparison
Dec 31, 2023