MGM Resorts International (MGM)
Interest coverage
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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,699,845 | 1,806,069 | 1,757,118 | 1,545,123 | 1,322,006 | 1,004,572 | 67,891 | 2,296,909 | 2,161,104 | 2,421,691 | 4,831,336 | 2,680,347 | 2,307,381 | 1,593,390 | -750,931 | -2,097,682 | -2,043,922 | -1,411,656 | -447,930 | 952,741 |
Interest expense (ttm) | US$ in thousands | 443,230 | 441,527 | 440,824 | 440,030 | 460,293 | 490,547 | 504,549 | 529,163 | 594,954 | 659,299 | 734,176 | 800,389 | 799,593 | 786,795 | 760,554 | 714,538 | 676,380 | 688,181 | 729,876 | 788,949 |
Interest coverage | 3.84 | 4.09 | 3.99 | 3.51 | 2.87 | 2.05 | 0.13 | 4.34 | 3.63 | 3.67 | 6.58 | 3.35 | 2.89 | 2.03 | -0.99 | -2.94 | -3.02 | -2.05 | -0.61 | 1.21 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,699,845K ÷ $443,230K
= 3.84
Interest coverage is a key financial ratio used to assess a company's ability to meet its interest obligations through its earnings. In the case of MGM Resorts International, the interest coverage ratio has shown fluctuations over the provided time period.
- In March 2020, the interest coverage ratio was 1.21, indicating that the company's operating income was just able to cover its interest expenses.
- The ratio turned negative in the subsequent quarters up until March 2021, signaling that MGM Resorts International was not generating enough operating income to cover its interest payments.
- By September 2021, the interest coverage ratio improved to 2.03, indicating that the company's operating income was twice its interest expenses.
- Over the following quarters, the ratio continued to increase, reaching a peak of 6.58 in June 2022, suggesting a significant improvement in the company's ability to cover its interest obligations.
- However, the ratio dipped slightly in the subsequent quarters but generally remained above 3, indicating MGM Resorts International's solid ability to generate enough operating income to cover its interest payments.
Overall, the trend in MGM Resorts International's interest coverage ratio shows a mix of challenges and improvements in its ability to meet its interest obligations through operational earnings over the provided time frame.
Peer comparison
Dec 31, 2024