MGM Resorts International (MGM)

Financial leverage 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
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
Total stockholders’ equity	US$ in thousands	3,811,170	3,965,720	4,416,170	4,839,660	4,831,530	4,841,690	5,733,570	5,065,340	6,070,640	6,829,950	6,180,180	6,306,830	6,504,730	6,861,100	7,374,790	8,173,910	7,727,260	6,060,550	6,520,480	6,786,200
Financial leverage ratio		11.12	10.74	9.72	9.00	9.46	9.78	8.45	7.63	6.74	6.05	5.95	5.92	5.61	5.39	5.08	4.79	4.38	5.14	4.73	4.59

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $42,368,500K ÷ $3,811,170K
= 11.12

MGM Resorts International's financial leverage ratio has exhibited some fluctuations over the past eight quarters. The ratio, which indicates the extent to which a company relies on debt financing, increased from 9.46 in Q4 2022 to a peak of 11.12 in Q4 2023, suggesting a higher level of debt relative to equity in the latest quarter.

Subsequently, the financial leverage ratio declined to 10.74 in Q3 2023, continued to decrease to 9.72 in Q2 2023, and further decreased to 9.00 in Q1 2023. These decreasing trends may indicate a reduction in leverage and potentially a more conservative approach to debt management during these quarters.

Comparing the most recent ratios to those of a year ago in Q1 2022, there has been a noticeable increase in the financial leverage ratio, indicating a higher level of debt relative to equity in MGM Resorts International's capital structure. The ratio has significantly risen from 7.63 in Q1 2022 to 11.12 in Q4 2023, reflecting a substantial increase in leverage over this period.

Overall, the analysis of MGM Resorts International's financial leverage ratio suggests fluctuations in the company's debt-to-equity structure over the past eight quarters, highlighting the importance of closely monitoring leverage levels to assess the firm's risk and financial health.