Penn National Gaming Inc (PENN)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,362,900 | 6,401,700 | 5,905,000 | 3,578,700 | 5,301,400 |
| Receivables | US$ in thousands | 319,000 | 246,400 | 195,000 | 96,400 | 88,700 |
| Receivables turnover | 19.95 | 25.98 | 30.28 | 37.12 | 59.77 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $6,362,900K ÷ $319,000K
= 19.95
The receivables turnover ratio of PENN Entertainment Inc has exhibited a declining trend over the past five years, decreasing from 59.77 in 2019 to 19.95 in 2023. This indicates that the efficiency of the company in collecting its accounts receivables has deteriorated over this period. A decreasing receivables turnover ratio could suggest potential issues with the company's credit policies, collection procedures, or an increase in uncollectible accounts.
A lower receivables turnover ratio means that it takes the company longer to collect outstanding receivables, which could tie up cash flow and negatively impact liquidity. Investors and creditors may view a declining receivables turnover ratio as a red flag, indicating potential difficulties in managing working capital effectively.
It would be prudent for PENN Entertainment Inc to assess its credit and collection policies, identify any inefficiencies in its accounts receivable management, and take appropriate measures to improve its receivables turnover ratio to enhance its overall financial performance and stability.
Peer comparison
Dec 31, 2023