Melco Resorts & Entertainment Limited
MLCO Consumer Cyclical Resorts & Casinos
Melco Resorts & Entertainment Limited’s revenue for fiscal 2025 (year ended December 2025) was $5.2 billion, up 11.3% from fiscal 2024. In the quarter to June 2026, revenue fell 5.72%, EPS grew 50.0%, free cash flow grew 513.6% and total debt fell 1.86%, each against the same quarter a year earlier. Dividend growth for three consecutive years, revenue growth for three, operating cash flow growth for three.
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Melco Resorts & Entertainment Limited (MLCO) Altman Z-score
Melco Resorts & Entertainment Limited's Altman Z-score for fiscal 2025 is 0.46, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 0.46 | 0.18 |
| FY2024 | 0.28 | 0.17 |
| FY2023 | 0.11 | 0.35 |
| FY2022 | −0.23 | (0.28) |
| FY2021 | 0.05 | (0.35) |
| FY2020 | 0.40 | (1.51) |
| FY2019 | 1.91 | 0.38 |
| FY2018 | 1.53 | (0.72) |
| FY2017 | 2.25 | 0.58 |
| FY2016 | 1.67 | (0.15) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.01 | — | 0.01 | |
| Retained earnings / total assets | (0.50) | — | −0.71 | |
| EBIT / total assets | 0.08 | — | 0.26 | |
| Market value of equity / total liabilities | 0.35 | — | 0.21 | |
| Sales / total assets | 0.68 | — | 0.68 | |
| Altman Z-score | Distress zone | 0.46 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −1.15 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| MCRI Monarch Casino & Resort, Inc. compare | 8.5× |
| BYD Boyd Gaming Corporation compare | 2.5× |
| RRR Red Rock Resorts, Inc. compare | 1.6× |
| MTN Vail Resorts, Inc. compare | 1.5× |
| HGV Hilton Grand Vacations Inc. compare | 1.4× |
| VAC Marriott Vacations Worldwide Corporation compare | 1.1× |
| MLCO Melco Resorts & Entertainment Limited | 0.5× |
| PENN PENN Entertainment, Inc. compare | 0.3× |
| BALY Bally's Corporation compare | 0.1× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets