MGM Resorts International (MGM)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 42,231,600 | 42,368,500 | 45,692,200 | 40,899,100 | 36,494,900 |
| Total stockholders’ equity | US$ in thousands | 3,023,480 | 3,811,170 | 4,831,530 | 6,070,640 | 6,504,730 |
| Financial leverage ratio | 13.97 | 11.12 | 9.46 | 6.74 | 5.61 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $42,231,600K ÷ $3,023,480K
= 13.97
The financial leverage ratio of MGM Resorts International has been steadily increasing over the years, indicating a rising level of debt relative to equity in the company's capital structure.
As of December 31, 2020, the financial leverage ratio stood at 5.61, showing that for every dollar of equity, there was $5.61 of debt. By December 31, 2024, this ratio had significantly risen to 13.97, highlighting a substantial increase in the company's reliance on debt financing.
This trend suggests that MGM Resorts International has been taking on more debt to fund its operations or growth initiatives, which may pose risks in terms of debt servicing obligations and financial stability. Investors and stakeholders should closely monitor how the company manages its debt levels to ensure long-term sustainability and profitability.
Peer comparison
Dec 31, 2024