MGMCAUTIOUS

MGM Return on Equity (ROE) Analysis

18.9%

Updated 561h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) is the profit a company earns for each dollar of shareholder equity, so MGM’s 18.9% means it generates 18.9 cents of profit per dollar of equity.

Sector Performance

65th percentile

MGM

18.9%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

13.5%(Jul 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) is the profit a company earns for each dollar of shareholder equity, so MGM’s 18.9% means it generates 18.9 cents of profit per dollar of equity.

That level is above the sector median of 13.8%, placing MGM in the 64th percentile among its peers. The 8-quarter trend direction is N/A, the year-over-year change is N/A, and the quarter-over-quarter change is +40.0%, with historical values showing 18.9% most recently versus 13.5% prior. This combination of a high ROE and a sharp quarterly rise could point to near-term positive momentum, but without a longer trend history, the durability of that improvement remains unclear. The elevated level relative to peers reduces the risk of poor capital efficiency, while the +40.0% QoQ jump adds upside potential if it holds. This metric contradicts the overall CAUTIOUS verdict, as a strong and improving ROE typically signals healthier profitability rather than a reason for caution.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about MGM?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are MGM's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.