Penn National Gaming Inc (PENN)

Working capital 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
Total current assets US$ in thousands 1,659,000 2,013,400 2,223,600 2,085,000 642,800
Total current liabilities US$ in thousands 1,490,000 1,158,700 1,133,200 860,000 905,600
Working capital turnover 37.65 7.49 5.42 2.92

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,362,900K ÷ ($1,659,000K – $1,490,000K)
= 37.65

The working capital turnover ratio for PENN Entertainment Inc has shown a significant upward trend over the past five years, indicating an improvement in the company's efficiency in utilizing its working capital.

In 2019, the working capital turnover ratio was not available. However, from 2020 to 2023, there was a steady increase in the ratio, with a substantial jump from 2.92 in 2020 to 37.65 in 2023. This suggests that the company is generating more revenue relative to its investment in working capital.

A higher working capital turnover ratio indicates that the company is effectively managing its current assets and liabilities to support its operations and generate sales. It reflects a quicker turnover of working capital, which may lead to increased profitability and liquidity.

Overall, the rising trend in PENN Entertainment Inc's working capital turnover ratio signals positive developments in its operational efficiency and financial performance over the years.


Peer comparison

Dec 31, 2023