The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. MGM Resorts International's current ratio for the quarter that ended in Dec. 2023 was 1.57.
MGM Resorts International has a current ratio of 1.57. It generally indicates good short-term financial strength.
The historical rank and industry rank for MGM Resorts International's Current Ratio or its related term are showing as below:
MGM'
s Current Ratio Range Over the Past 10 Years
Min: 0.76 Med: 1.17 Max: 3.21
Current: 1.57
During the past 13 years, MGM Resorts International's highest Current Ratio was 3.21. The lowest was 0.76. And the median was 1.17.
MGM's Current Ratio is ranked better than 59.4% of 835
companies
in the Travel & Leisure industry
Industry Median: 1.33
vs MGM: 1.57
MGM Resorts International Current Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of MGM Resorts International's Current Ratio
For the Resorts & Casinos subindustry, MGM Resorts International's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
MGM Resorts International's Current Ratio Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, MGM Resorts International's Current Ratio distribution charts can be found below:
* The bar in red indicates where MGM Resorts International's Current Ratio falls into.
MGM Resorts International Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
MGM Resorts International's Current Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MGM Resorts International (NYSE:MGM) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
MGM Resorts International Current Ratio Related Terms
Thank you for viewing the detailed overview of MGM Resorts International's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
MGM Resorts International (MGM Resorts International) Business Description
MGM Resorts is the largest resort operator on the Las Vegas Strip with 35,000 guest rooms and suites, representing about one fourth of all units in the market. The company's Vegas properties include MGM Grand, Mandalay Bay, Park MGM, Luxor, New York-New York, and Bellagio. The Strip contributed approximately 74% of total EBITDAR in 2022. MGM also owns U.S. regional assets, which represented 31% of 2022 EBITDAR (MGM's Macao EBITDAR was negative in 2022). MGM's U.S. sports and iGaming operations are currently a high-single-digit percentage of its total revenue. The company also operates the 56%-owned MGM China casinos with a new property that opened on the Cotai Strip in early 2018. Further, we estimate MGM will open a resort in Japan in 2030.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
MGM has been successfully added to your 