Penn National Gaming Inc (PENN)

Short-term

Turnover ratios

Based on the provided data for Penn National Gaming Inc, let's analyze the activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio indicates how efficiently the company manages its inventory. It measures how many times the company's inventory is sold and replaced within a specific period.
- Penn National Gaming's inventory turnover has shown fluctuations over the years, with a significant increase from 2021 to 2022, followed by a decrease in 2024.
- A higher inventory turnover ratio generally indicates that the company is managing its inventory efficiently and quickly converting it into sales.

2. Receivables Turnover:
- The receivables turnover ratio reflects the speed at which the company collects its accounts receivable. It measures how many times the company collects its average accounts receivable balance during a period.
- In this case, there is no data available for the receivables turnover ratio for Penn National Gaming across the years provided. This may suggest that the company's credit sales and collection processes are not detailed in the data.

3. Payables Turnover:
- The payables turnover ratio measures how quickly a company pays its suppliers. It indicates the efficiency of managing trade credit and the payment cycle.
- Similar to receivables turnover, the data does not provide information on the payables turnover ratio for Penn National Gaming. This could indicate that the company's payment terms with suppliers are not captured in the data.

4. Working Capital Turnover:
- The working capital turnover ratio evaluates how efficiently the company utilizes its working capital to generate sales revenue.
- Penn National Gaming's working capital turnover has shown a significant increase from 2022 to 2023, indicating a more efficient use of working capital during that period.
- A higher working capital turnover ratio suggests that the company is generating more sales revenue per unit of working capital invested.

In conclusion, the analysis of Penn National Gaming Inc's activity ratios highlights fluctuations in inventory turnover and a significant increase in working capital turnover over the years, indicating changes in the company's operational efficiency and utilization of resources. However, the lack of data for receivables and payables turnover ratios limits the comprehensive assessment of the company's overall efficiency in managing receivables and payables.

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Average number of days

Based on the provided data for Penn National Gaming Inc's activity ratios:

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand decreased from 20.22 days on December 31, 2020, to 15.34 days on December 31, 2021, indicating improved inventory management efficiency.
- This trend continued as the DOH further decreased to 10.66 days on December 31, 2022, reflecting the company's ability to turn over its inventory at a faster rate.
- However, on December 31, 2023, the DOH increased to 18.56 days, suggesting a potential slowdown in inventory turnover. The data for December 31, 2024, is not available.

2. Days of Sales Outstanding (DSO):
- The data for Days of Sales Outstanding is not provided for any of the years, indicating that information on the average number of days it takes for the company to collect revenue from its sales is not available.

3. Number of Days of Payables:
- Similar to DSO, there is no data available for the number of days of payables for any of the years, which means the average number of days the company takes to pay its bills to creditors is not disclosed.

Overall, the available data on Penn National Gaming Inc's activity ratios shows a positive trend in managing inventory efficiently by reducing the days of inventory on hand over the years. However, the lack of information on DSO and the number of days of payables limits a comprehensive analysis of the company's overall working capital management performance.

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Long-term

The long-term activity ratios of Penn National Gaming Inc, as represented by Fixed Asset Turnover and Total Asset Turnover, provide insights into how efficiently the company is utilizing its assets to generate revenue over the long term.

1. Fixed Asset Turnover:
- The Fixed Asset Turnover ratio indicates how efficiently the company is using its fixed assets to generate sales. A higher ratio is generally preferred as it signifies that the company is effectively utilizing its fixed assets to generate revenue.
- Over the period from 2020 to 2023, there is a fluctuation in the Fixed Asset Turnover ratio for Penn National Gaming Inc. The ratio increased significantly from 0.79 in 2020 to 1.42 in 2022, indicating an improvement in the company's ability to generate revenue from its fixed assets.
- However, it is notable that data is not available for 2023 and 2024 in the provided information, possibly due to missing data points or specific reasons related to the company's operations during those periods.

2. Total Asset Turnover:
- The Total Asset Turnover ratio measures how efficiently the company is using all its assets to generate sales. A higher ratio suggests better asset utilization and revenue generation.
- The Total Asset Turnover ratio for Penn National Gaming Inc shows an increasing trend over the period from 2020 to 2024, starting from 0.24 in 2020 and reaching 0.43 in 2024. This indicates an improvement in the company's overall ability to generate revenue from its total assets.
- The gradual increase in Total Asset Turnover implies that Penn National Gaming Inc is becoming more efficient in utilizing its assets to generate sales over the long term, which is a positive trend for the company's operational efficiency and financial performance.

In summary, the analysis of Penn National Gaming Inc's long-term activity ratios suggests an overall improvement in asset utilization efficiency, as indicated by the increasing trend in Total Asset Turnover and the significant increase in Fixed Asset Turnover from 2020 to 2022. However, further data beyond 2022 is needed to provide a complete picture of the company's long-term asset management performance.