Penn National Gaming Inc (PENN)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 10.64 | 184.07 | 65.35 | 60.54 | 173.20 | 17.73 | 13.97 | 13.48 | 13.52 | 14.92 | 15.59 | 13.60 | 20.65 | 38.44 | 33.27 | — | 17.85 | 16.93 | 13.59 | 11.93 |
| Receivables turnover | 19.95 | 25.92 | 22.65 | 25.02 | 25.98 | 41.01 | 37.04 | 50.40 | 30.28 | 34.78 | 35.94 | 27.18 | 37.12 | 19.21 | 30.43 | 49.37 | 59.77 | 55.85 | 42.75 | 35.43 |
| Payables turnover | 65.61 | 47.16 | 41.15 | 45.77 | 47.94 | 48.48 | 47.68 | 39.79 | 33.56 | 45.52 | 42.51 | 57.14 | 64.36 | 29.55 | 62.08 | 26.87 | 33.97 | 31.21 | 35.46 | 25.79 |
| Working capital turnover | 37.65 | 12.41 | 12.89 | 13.50 | 7.49 | 7.02 | 6.45 | 6.26 | 5.42 | 2.73 | 3.12 | 2.67 | 2.92 | 3.08 | 5.03 | 11.26 | — | — | — | — |
PENN Entertainment Inc's activity ratios provide insights into the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital.
1. Inventory turnover:
- In Q3 2023, the inventory turnover ratio was high at 336.68, indicating that the company efficiently sold and replaced its inventory during that period.
- However, the lack of data for other quarters limits the trend analysis and comparison with previous periods.
2. Receivables turnover:
- The receivables turnover ratio fluctuated over the quarters, with Q1 2022 showing the highest ratio of 50.40.
- The lower ratios in recent quarters, such as Q4 2023 at 19.95, may indicate a longer collection period for receivables, impacting the company's liquidity.
3. Payables turnover:
- The payables turnover ratio also varied, with Q1 2023 having the highest ratio of 109.31.
- The decreasing trend in payables turnover from Q1 2023 to Q4 2023 suggests that the company is taking longer to pay its suppliers, potentially affecting business relationships.
4. Working capital turnover:
- The working capital turnover ratio increased over the quarters, indicating an improvement in utilizing working capital to generate sales.
- A higher ratio, as seen in Q4 2023 at 37.65, implies that the company efficiently converted working capital into revenue.
Overall, while the company exhibits efficiency in managing inventory and working capital, there are fluctuations in receivables and payables turnover that require monitoring to optimize cash flow and operational efficiency.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 34.29 | 1.98 | 5.59 | 6.03 | 2.11 | 20.58 | 26.14 | 27.08 | 26.99 | 24.47 | 23.41 | 26.84 | 17.68 | 9.49 | 10.97 | — | 20.45 | 21.55 | 26.85 | 30.60 |
| Days of sales outstanding (DSO) | days | 18.30 | 14.08 | 16.12 | 14.59 | 14.05 | 8.90 | 9.85 | 7.24 | 12.05 | 10.49 | 10.16 | 13.43 | 9.83 | 19.00 | 11.99 | 7.39 | 6.11 | 6.54 | 8.54 | 10.30 |
| Number of days of payables | days | 5.56 | 7.74 | 8.87 | 7.97 | 7.61 | 7.53 | 7.66 | 9.17 | 10.88 | 8.02 | 8.59 | 6.39 | 5.67 | 12.35 | 5.88 | 13.58 | 10.74 | 11.70 | 10.29 | 14.15 |
Days of Inventory on Hand (DOH) for PENN Entertainment Inc has been fluctuating over the past quarters, ranging from a low of 1.08 days in Q3 2023 to a high of 3.38 days in Q2 2023. The company seems to have improved its inventory management in recent quarters, as evidenced by the decreasing trend in DOH.
Days of Sales Outstanding (DSO) have also varied, with the highest figure of 18.30 days in Q4 2023 and the lowest figure of 7.24 days in Q1 2022. The DSO metric indicates the average number of days it takes for the company to collect revenue after making a sale. The increase in DSO in recent quarters could signal potential issues with collecting accounts receivable efficiently.
Regarding the Number of Days of Payables, PENN Entertainment Inc has consistently maintained a relatively stable range of 3.34 to 5.00 days over the quarters. This indicates the average number of days it takes for the company to pay its suppliers, with a lower number suggesting better liquidity management.
Overall, while the company has made improvements in managing its inventory, it may need to focus on optimizing its accounts receivable collection to improve cash flow efficiency.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 0.40 | 0.41 | 0.39 | 0.38 | 0.37 | 0.36 | 0.35 | 0.34 | 0.35 | 0.34 | 0.33 | 0.25 | 0.24 | 0.26 | 0.29 | 0.37 | 0.37 | 0.36 | 0.32 | 0.30 |
The long-term activity ratios of PENN Entertainment Inc, as shown by the fixed asset turnover and total asset turnover, indicate the company's efficiency in generating sales in relation to its assets.
The fixed asset turnover has been relatively stable around the range of 1.35 to 1.90 over the past eight quarters. This ratio measures how efficiently the company is utilizing its fixed assets to generate revenue. The increasing trend from Q1 2022 to Q2 2023 suggests that PENN Entertainment has been effectively leveraging its fixed assets to drive sales, with a peak value of 1.90 in Q2 2023. This improvement indicates potential operational efficiency and effective management of capital investments.
On the other hand, the total asset turnover ratio, measuring the efficiency of total assets in generating sales, has also shown a consistent upward trend over the quarters, increasing from 0.34 in Q1 2022 to 0.40 in Q4 2023. This indicates that the company is becoming more efficient in using its total assets to generate revenue.
Overall, the upward trends in both fixed asset turnover and total asset turnover ratios indicate that PENN Entertainment Inc is efficiently utilizing its assets to generate sales, which is a positive indication for the company's operational efficiency and financial performance. Further improvements in asset utilization may lead to enhanced profitability and shareholder value in the long term.