Analysis of Mgm

MGM Resorts International

Over the course of the semester out team researched MGM Resorts International. MGM owns and operates casino resorts in the United States and across the world. They offer gaming, hotel, dining, entertainment and other services to the customer. We picked this company because we were interested in investing in it because we all share a love of gambling. They operate on the NYSE as MGM. Most of our information was gathered from the annual report to shareholders; however, we also used the annual report to shareholders with a letter from the Chief Executive Officer and SEC Form 10-K.

Annual Report

Financial Highlights

We looked at the trend over the period of 2008-2010 of four different areas which where: Net sales, net income, diluted earnings per share and income.

The trend in net sales showed an overall decline from 2008-2010. The trend in net income showed an increasing decline over the three years. The basic loss per share has an unstable trend, where it increased in 2009 from 2008 but then decreased again in 2010. The total assets over the three years showed a declining trend.

Management Discussion and Analysis

This discussion leads some insight into the results of current operations, capital resources and liquidity but also the direction management deems the company to be heading. In MGM’s Management and discussion analysis we found that a variety of economic factors resulted in the current poor operating results. MGM is confident they can meet short-term cash needs liquidity. However, they have no assurances about being able to repay the future debt they have incurred to fund future growth of the company despite their established line of credit.

Financial Statements

To obtain a clearer and more detailed view of how the company really performed, we took a look at some financial statements with particular emphasis on the Balance Sheet, Income Statement and Statement of Cash flows. These provide a snapshot of the company’s...