MGM Resorts International (MGM)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 42,368,500 | 45,692,200 | 40,899,100 | 36,494,900 | 33,876,400 |
| Total stockholders’ equity | US$ in thousands | 3,811,170 | 4,831,530 | 6,070,640 | 6,504,730 | 7,727,260 |
| Financial leverage ratio | 11.12 | 9.46 | 6.74 | 5.61 | 4.38 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $42,368,500K ÷ $3,811,170K
= 11.12
The financial leverage ratio of MGM Resorts International has been increasing steadily over the past five years. The ratio stood at 4.38 in 2019 and has risen to 11.12 in 2023. This suggests that the company's reliance on debt to finance its operations and investments has been growing significantly over the period.
The increasing trend in the financial leverage ratio indicates that MGM Resorts International may be taking on more debt relative to its equity, which could potentially lead to higher financial risk. It's essential for investors and stakeholders to closely monitor the company's debt levels and financial strategy to assess its ability to meet debt obligations and maintain profitability in the long term.
Peer comparison
Dec 31, 2023