MGM Resorts International (MGM)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
MGM Resorts International has consistently maintained a strong solvency position as reflected in its solvency ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 across various reporting periods from March 2020 to December 2024. This indicates that MGM Resorts International has had no debt relative to its total assets, capital, or equity during this period.
Furthermore, the Financial leverage ratio, which measures the proportion of debt in the company's capital structure, has shown a steady increase over the same period. The ratio has increased from 4.79 in March 2020 to 13.97 in December 2024. This rise suggests that MGM Resorts International has been increasingly relying on debt to finance its operations and investments over the years.
Overall, while the low Debt-to-assets, Debt-to-capital, and Debt-to-equity ratios showcase the company's minimal debt exposure in relation to its assets and capital, the increasing trend in the Financial leverage ratio indicates a growing reliance on debt financing. Investors and stakeholders may need to monitor this trend closely to assess MGM Resorts International's future borrowing capacity and financial risk.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio of MGM Resorts International has shown significant fluctuations over the past few years. The ratio indicates the company's ability to cover its interest expenses with its operating income.
In March 2020, the interest coverage ratio was low at 1.21, suggesting a relatively tight ability to cover interest payments. Subsequently, the ratio became negative in the following quarters, indicating that the company's operating income was insufficient to cover its interest expenses.
However, as of September 2021, the interest coverage ratio improved to 2.03, indicating a better ability to meet interest obligations. The ratio continued to increase over the next few quarters, reaching a peak of 6.58 in June 2022, signaling a significant improvement in the company's ability to cover interest costs.
Although there were slight fluctuations in the ratio in the following quarters, it generally remained positive and above 3, reflecting a healthy interest coverage for MGM Resorts International. The consistent improvement in the interest coverage ratio demonstrates the company's enhanced financial stability and capacity to meet its interest obligations.