MGM Resorts International — Earnings Quality Grade F
MGM · Consumer Cyclical
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 23 days, change +1 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 1.7%, CFFO 7.1%. Cash follows revenue
Expense Quality
Inventory -11.4% vs COGS 3.8%. Normal
CapEx growth -7.1% vs revenue 1.7%. Normal
SG&A/Gross Profit = 62.6%. Normal
Gross margin 44.4%, change -1.1pp. Stable
Cash Flow Quality
CFFO far exceeds NI (ratio 12.3x). Non-cash charges depressing profits
FCF $1.5B, FCF/NI = 7.09
Accruals ratio = -5.6%. Low accruals
Cash $2.1B covers only 7% of debt $31.4B
Balance Sheet Health
Goodwill+Intangibles $6.3B = 258% of equity. Over 50%
Debt/EBITDA = 18.3x (>4x). Financial stress
Other assets -1.2% vs revenue 1.7%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -9% YoY. Normal
Manipulation Score
M-Score = -2.73 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10