Mgm Results

Executive Summary MGM Resorts International (NYSE: MGM) owns and operates casino resorts in the United States. As of November 16, 2010, the connection owned and operated 15 properties located in Nevada, Mississippi, and Michigan. In addition, MGM has 50% investings in 4 other properties in Nevada, Illinois, and Macau. This pass over provides a summary of the current financials of MGM and analyzes the investment potential of the company. The dramatic play industry is very volatile with an average beta of 2.53. MGMs beta of 3.84 is much higher than the market average. To determine investment potential, we calculated discern financial ratios and completed projections of their financial statements to commiserate current and future state. Furthermore, an analysis of MGMs financing and crownwork structure concluded that MGM is highly leveraged as we expected with a company focused on growth. This analysis shows that MGM has been operating at a loss, but revenues are growing. Their partnership in mainland China has allowed MGM to grow their EBITDA by 15-20%. These are positive signs that indicate the company is preparing to expand operations in emerging casino markets. An paygrade of recent stock performance and industry analyst recommendations reveals conflate opinions.

While some analysts feel that MGM is a good obtain in the short-term, others are neutral or downgrade MGM found on the poor balance sheet. The results of our analysis are self-consistent with the findings of industry analysts. In our opinion, MGM is a good buy in the short-term because of their increased earnings from revenues per room (REVPAR) and EBITDA growth. Financial ratio Analysis Recent market and economic fluctuations make it difficult to evaluate MGM in the absence of comparison to their competition. Table 1 lists key financial ratios for MGM Resorts International and their direct competition, Wynn Resorts and Las Vegas Sands Corporation. Table 1. comparative degree Financial Ratios for MGM,... If you want to get a full essay, guild it on our website: Ordercustompaper.com

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