MGM Resorts International (MGM)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 42,231,600 | 42,741,000 | 41,815,500 | 42,079,100 | 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 |
| Total stockholders’ equity | US$ in thousands | 3,023,480 | 3,231,940 | 3,212,680 | 3,456,760 | 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 |
| Financial leverage ratio | 13.97 | 13.22 | 13.02 | 12.17 | 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 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $42,231,600K ÷ $3,023,480K
= 13.97
Based on the provided financial data for MGM Resorts International, the financial leverage ratio has been steadily increasing over the past few years. The financial leverage ratio measures the extent to which the company relies on debt to finance its operations and growth.
From March 31, 2020, to December 31, 2024, the financial leverage ratio has increased from 4.79 to 13.97. This indicates that the company's reliance on debt has been increasing significantly over this period.
A higher financial leverage ratio suggests that a larger portion of the company's operations is funded by debt rather than equity. While debt can be a cost-effective way to finance operations, it also increases the company's financial risk as it needs to meet interest and principal repayments consistently.
The trend of increasing financial leverage ratio for MGM Resorts International may indicate a strategic decision to leverage debt for business expansion, acquisitions, or other investment opportunities. However, investors and stakeholders should closely monitor the company's ability to service its debt obligations and manage its financial risk effectively.
Peer comparison
Dec 31, 2024