Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the reported quarter, MGM Resorts International's free cash flow improved compared to both the prior quarter and the year-ago period, supported by higher revenue and operating cash flow. The company's SEC filing includes discussion of liquidity and capital resources, aligning with the observed cash generation.
- Free cash flow margin expanded as operating cash flow increased relative to revenue, while capital expenditure declined from the prior quarter. Cash conversion strengthened sequentially and year-over-year, reflecting improved efficiency in turning revenue into free cash flow.
- Sequentially, free cash flow and margin improved as operating cash flow rose and capital spending fell. Compared to the same period a year ago, revenue, operating cash flow, and free cash flow were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$564.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$704.1M
Cash generated by operations before capital spending.
CapEx
$139.8M
Capital spending and related asset purchases.
FCF margin
14.6%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2022-06-30 | $3.3B | $512.2M | $135.3M | $377.0M | 11.5% |
| 2022-09-30 | $3.4B | $400.6M | $219.7M | $180.8M | 5.3% |
| 2022-12-31 | $3.6B | $423.2M | $308.5M | $114.7M | 3.2% |
| 2023-03-31 | $3.9B | $704.1M | $139.8M | $564.2M | 14.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 120.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Strength
Operating cash flow rose compared to both the prior quarter and the year-ago period, providing a solid foundation for free cash flow generation. This increase was the most observable contributor to the improved free cash flow margin.
Higher operating cash flow directly supported the increase in free cash flow and the expansion of free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow margin expanded as operating cash flow increased relative to revenue, while capital expenditure declined from the prior quarter. Cash conversion strengthened sequentially and year-over-year, reflecting improved efficiency in turning revenue into free cash flow.
Sequentially, free cash flow and margin improved as operating cash flow rose and capital spending fell. Compared to the same period a year ago, revenue, operating cash flow, and free cash flow were all higher.
Monitor the trend in capital expenditure relative to operating cash flow, as it declined from the prior quarter but remained higher than the year-ago level.