Penn National Gaming Inc (PENN)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	6,362,900	6,553,100	6,558,700	6,510,800	6,401,700	6,388,600	6,275,400	6,194,300	5,905,000	5,359,900	4,977,800	3,737,500	3,578,700	3,892,500	4,117,300	5,134,900	5,301,400	5,115,500	4,550,700	4,054,500
Property, plant and equipment	US$ in thousands	3,514,000	3,461,300	3,443,800	3,443,300	4,515,500	4,517,200	4,539,700	4,579,600	4,582,200	4,570,100	4,456,400	4,483,200	4,529,300	4,592,900	4,677,000	4,745,500	5,120,200	5,155,200	5,215,780	5,227,920
Fixed asset turnover		1.81	1.89	1.90	1.89	1.42	1.41	1.38	1.35	1.29	1.17	1.12	0.83	0.79	0.85	0.88	1.08	1.04	0.99	0.87	0.78

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,362,900K ÷ $3,514,000K
= 1.81

The fixed asset turnover ratio of PENN Entertainment Inc has shown a generally increasing trend over the past eight quarters, fluctuating between 1.35 and 1.90. This ratio indicates how efficiently the company is generating revenues relative to its investment in fixed assets.

In the latest quarter, Q4 2023, the fixed asset turnover ratio stands at 1.81, which suggests that for every dollar invested in fixed assets, the company is generating approximately $1.81 in revenue. This represents a slight decrease compared to the previous quarter but still indicates a relatively efficient use of fixed assets to generate sales.

Overall, the increasing trend in the fixed asset turnover ratio signifies that PENN Entertainment Inc has been able to improve its utilization of fixed assets to drive revenue generation, demonstrating a positive operational efficiency in managing its asset base to enhance profitability.